The above passage seems to imply that: 1. most of modern economic growth is based on technological progress. 2. much of modern Indian economy does not nurture sufficient symbiotic relationship with labour-intensive, natural resource-based livelihoods. 3. service sector in India is not very labour-intensive. 4. literate rural population is not willing to enter organised sector. Which of the statements given above are correct?

Passage

A vast majority of Indians are poor, with barely 10 per cent employed in the organised sector. We are convinced that vigorous economic growth is generating substantial employment. But this is not so. When our economy was growing at 3 per cent per year, employment in the organised sector was growing at 2 per cent per year. As the economy began to grow at 7-8 per cent per year, the rate of growth of employment in the organised sector actually declined to 1 per cent per year."

QUESTION

CSAT

Easy

Comprehension

Prelims 2019

The above passage seems to imply that:

most of modern economic growth is based on technological progress.
much of modern Indian economy does not nurture sufficient symbiotic relationship with labour-intensive, natural resource-based livelihoods.
service sector in India is not very labour-intensive.
literate rural population is not willing to enter organised sector.

Which of the statements given above are correct?

Select an option to attempt

Explanation

Statement 1 is correct. The passage points out that even as the economy grows at a rapid rate (7-8% per year), employment in the organized sector has not grown proportionally. This suggests that economic growth might be driven by factors like technological advancements that reduce the need for labor in certain sectors, such as manufacturing or services, which typically rely on technology for efficiency rather than manual labor.

Statement 2 is correct. The decline in employment growth in the organized sector, despite high economic growth, suggests that many sectors are not integrating labor-intensive industries effectively into the growing economy. This aligns with the idea that there isn't a strong relationship with sectors that are labor-intensive and dependent on natural resources, which would typically employ large numbers of people.

Statement 3 is correct. The passage suggests that even as the economy grows at a faster rate, the growth in employment in the organized sector has slowed. This can be indicative of the fact that many of the sectors contributing to economic growth, such as the service sector, are not labor-intensive enough to generate sufficient employment opportunities for the growing population.

Statement 4 is incorrect. The passage primarily highlights the lack of sufficient job creation in the organized sector, rather than any reluctance by a specific group (like the rural population) to join it.

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