1. Worker productivity (rs. per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas.
2. The percentage share of rural areas in the workforce steadily increased.
3. In rural areas, the growth in the non-farm economy increased.
4. The growth rate in rural employment decreased
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 3 and 4 only
(c) 3 only
(d) 1, 2 and 4 only
Answer: b
Explanation:
Trends in woker productivity (at current prices) across different worker categories in India (Rs / Worker )
| Year | Agricultural labour | Cultivator | Farm workers | Non-farm rural workers | All rural worker | Urban |
| 1993-94 | 5040 | 12271 | 9410 | 25822 | 12947 | 38934 |
| 1999-00 | 9246 | 22807 | 17059 | 51789 | 25380 | 89180 |
| 2004-05 | 10480 | 25183 | 19933 | 82990 | 37273 | 120419 |
| 2011-12 | 33937 | 77144 | 62208 | 171836 | 101755 | 282515 |
The above table clearly shows Worker productivity in urban areas and rural areashas increased
In 2004-05 productivity of Rural worker was Rs. 37273 in 2011-12, it increased to Rs. 101755, similarly In 2004-05 productivity of urban worker was Rs.120419 in 2011-12, it increased to Rs. 282515
Hence, statement 1 is incorrect.
Changes in population and economically active persons in rural areas between 2004-05 and 2011-12
(million)
| Particulars | 2004-05 | 2011-12 |
| 1. Population | 780 | 842 |
| 2. LFPR (% | 45 | 41 |
| 3. Labourforce | 349 | 342 |
| 4.Workforce | 343 | 336 |
| 4.1Agriculture | 249 | 216 |
| 4.1.1Cultivators | 160 | 141 |
| 4.1.2 Agril. labour | 89 | 75 |
| 4.2 Non-farm | 94 | 121 |
In 2004-05 work force in rural areas was 343 million , in 2011-12 work force in rural areas decreased to 336 million, eventually share of rural workforce to total workforce declined
Hence, statement 2 is incorrect.
During the period 2004-05 to 2011-12, agriculture sector witnessed revival and registered impressive annual growth rate of 4.27 per cent. Similarly, non-farm sectors growth accelerated to 9.21 per cent. Based on acceleration in growth in agriculture as well as nonfarm sectors, this period is termed as the “period of economic acceleration”.
Most of the employment opportunities have to be created in the nonfarm sector as the natural choice of the educated youth would be to join more productive nonfarm sectors instead of agriculture. In rural areas in 2004-05 , 94 million people were employed by 2011-12 it increased to 121 million people
Hence, statement 3 is correct.
After 1999-00, growth rate of rural economy picked up the pace and reached at par with the growth rate of urban economy. This led to stabilization in rural contribution in total NDP at around 48 per cent. The rural share in national NDP dropped slightly during 2004-05 to 2011- 12 despite acceleration in growth rate .
Growth rates in rural employment (Usual status)
| 1973-94 | 2.16 |
| 1994-05 | 1.45 |
| 2005-12 | -0.28 |
Growth rate of employment in in rural ares in 1970-71 to 1993-94 (termed as pre-reform period) was 2.16 , 1993-94 to 2004-05 (termed as postreform period) was 1.45 and 2004-05 to 2011-12 (termed as period of economic acceleration) was -0.28 , so the growth rate of rural employment after economic reforms decreased .
Hence, statement 4 is correct.
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