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Question No. 13Interactive Test Mode
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Q13. With reference to the Indian economy after the 1991 economic liberalisation, consider the following statements: 1. Worker productivity (rupees per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas. 2. The percentage age 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?

With reference to the Indian economy after the 1991 economic liberalisation, consider the following statements:

  1. Worker productivity (rupees per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas.
  2. The percentage age 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?
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2020 • Indian Economy

Correct Answer: Option (B) — 3 and 4 only

Concept & Option Breakdown

Standard Reference Verified
  • Statement 1 is incorrect: Worker productivity (in rupees per worker at constant prices) increased in both rural and urban areas post-liberalization.
  • Statement 2 is incorrect: Due to rapid urbanization and rural-to-urban migration, the percentage share of rural areas in the total workforce experienced a steady decline (from ~77.8% in 1993–94 to ~70.9% in 2011–12).
  • Statement 3 is correct: Non-farm rural economic activities (such as construction, manufacturing, and rural services) expanded significantly, generating a rising share of rural income.
  • Statement 4 is correct: The growth rate of rural employment slowed down and turned negative during the mid-2000s (2004–05 to 2011–12).
Elimination Heuristic & Exam Approach

In Statement 2, 'steadily increased' is an extreme generalization. Economic transformation and urbanization inherently cause the rural share of total employment to decline.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2020 (Q13)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (B) — (b) 3 and 4 only

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Frequently Asked Questions — UPSC Prelims 2020 Q13

What is the official answer for UPSC Prelims 2020 GS Paper I Question 13 (Indian Economy)?

The official UPSC answer key for this 2020 Indian Economy (Indian Economic Planning & Growth) question is Option (B): "(b) 3 and 4 only". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2020 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Indian Economic Planning & Growth UPSC Prelims question using option elimination?

In Statement 2, 'steadily increased' is an extreme generalization. Economic transformation and urbanization inherently cause the rural share of total employment to decline.

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