Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Rural Development

Question:

What was the reason behind lack of proper development in rural areas in post economic reform period?

Options:

Less investment by the public sector

Lack of infrastructural support

Casualisation of employment opportunities

All of the above

Correct Answer:

All of the above

Explanation:

The correct answer is Option 4: All of the above

Since independence, although the share of agriculture sector’s contribution to GDP was on a decline, the population dependent on this sector did not show any significant change. Further, after the initiation of reforms, the growth rate of agriculture sector decelerated to about 3 per cent per annum during the 1991-2012, which was lower than the earlier years. In recent years, this sector has become volatile. During 2014-15, the GVA growth rate of agriculture and its allied sectors was less than one per cent. Scholars identify decline in public investment since 1991 as the major reason for this. They also argue that inadequate infrastructure, lack of alternate employment opportunities in the industry or service sector, increasing casualisation of employment etc., further impede rural development. The impact of this phenomenon can be seen from the growing distress witnessed among farmers across different parts of India.