With reference to the Indian economy after the 1991 economic liberalization, consider the following statements: 1) Worker productivity (` 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 non-farm economy increased. 4) The growth rate in rural employment decreased. Which of the statements given above is/are correct?

The correct answer is B (3 and 4 only). The core concept is the structural shift of the post-1991 economy: growth came mostly from services and urban non-farm activity, while rural India still depended on agriculture for much of its employment.

• Statement 1 is wrong. Real worker productivity rose in both urban and rural areas after 1991. It grew faster in urban areas, so the gap widened, but rural productivity did not fall.
• Statement 2 is wrong. The rural share of the workforce declined over this period, as workers moved toward urban and non-farm jobs. It did not rise steadily.
• Statement 3 is correct. Rural non-farm activity, such as trade, transport, construction and small manufacturing, expanded and absorbed a growing share of rural workers.
• Statement 4 is correct. Employment growth slowed in the 2000s, especially in rural areas, between the NSSO rounds of 1993-94, 2004-05 and 2011-12. This is the basis of the jobless-growth debate.

Mains angle: rural distress, agrarian stress and the case for rural non-farm employment under MGNREGA and skilling schemes.

Trap: candidates pick option A on the basis of the urban productivity gain and forget that rural productivity also rose. Check each statement against the direction of change, not just whether a trend exists.