Q. Consider the following statements:
1.In India, a significant portion of the population is employed in agriculture, but productivity remains low.
2.The Liberalization, Privatization, and Globalization (LPG) reforms have not resulted in a substantial reduction in poverty levels in India.
3.India has not been able to effectively utilize its surplus labour to expand its manufacturing sectors.
Which of the statements given above are correct?
Explanation –
Statements 1 and 3 are correct. Nearly three-quarters of India’s families depend on rural incomes, with a significant portion of the labour force engaged in agriculture. However, the productivity in this sector is relatively low due to factors like inadequate irrigation, lack of modern technology, and small fragmented land holdings. Despite having a large working-age population, India has struggled to shift its surplus labour from agriculture to manufacturing, which remains a challenge for economic growth. The manufacturing sector has not expanded sufficiently to absorb the excess labour from agriculture.
Statement 2 is incorrect. The LPG reforms of 1991 significantly reduced poverty levels in India. Between 1991 and 2011, the poverty rate fell from approximately 50% to around 20%, pulling millions out of poverty.
Source: The Hindu
