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

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?

Question

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

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?

Accepted Answer

Correct Option: 1 and 2 only Let us evaluate the statements based on the passage. Statement 1 is correct because as economic growth increased from 3 percent to 7-8 percent, organised sector employment growth actually declined from 2 percent to 1 percent, implying that modern economic growth is driven by technology and capital rather than employment generation. Statement 2 is correct because the divergence between high economic growth and low employment growth implies that the modern economy does not nurture a symbiotic relationship with labour-intensive livelihoods. Statement 3 is incorrect as the passage does not discuss the service sector specifically. Statement 4 is also not mentioned or implied in the text. Therefore, statements 1 and 2 are correct.

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