Read the two statements and choose the correct alternative from below:

STATEMENT 1: In the late 1990s there was a widening gap between the growth of GDP and employment.

STATEMENT 2: Jobless growth is a Phenomenon in which the Indian economy has been able to produce more goods and services without generating employment.

Both statement 1 and statement 2 are true.

The correct answer is Option (3) → Both statement 1 and statement 2 are true.

STATEMENT 1: In the late 1990s there was a widening gap between the growth of GDP and employment. Correct.

STATEMENT 2: Jobless growth is a Phenomenon in which the Indian economy has been able to produce more goods and services without generating employment. Correct.

In the late 1990s, the employment growth started declining and reached the level of growth that India had in the early stages of planning. During these years, we also find a widening gap between the growth of GDP and employment. This means that in the Indian economy, without generating employment, we have been able to produce more goods and services. Scholars refer to this phenomenon as jobless growth.