Which of the following statements about the rural non-farm economy is NOT correct?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → The leather industry is a subsistence, low-productivity segment that lacks infrastructure.
The non-farm economy has two kinds of segments. Some grow fast through dynamic linkages, while others have potential but lack infrastructure and support.
Option (1) Agro-processing and food processing industries are among its dynamic sub-sectors. — True. Both are named among the dynamic sub-sectors.
Option (2) Pottery, crafts and handlooms have the potential but seriously lack infrastructure and other support. — True. These traditional home-based industries need infrastructure and other support.
Option (3) The leather industry is a subsistence, low-productivity segment that lacks infrastructure. — False. The leather industry is a dynamic sub-sector with healthy growth, along with agro-processing, food processing and tourism.
Option (4) Some of its segments possess dynamic linkages that permit healthy growth. — True. Some segments have dynamic linkages, while others stay at a low level of productivity.
NCERT (2026-27): “5.5 Diversification into Productive Activities … As agriculture is already overcrowded, a major proportion of the increasing labour force needs to find alternate employment opportunities in other non-farm sectors. Non-farm economy has several segments in it; some possess dynamic linkages that permit healthy growth while others are in subsistence, low productivity propositions. The dynamic sub-sectors include agro-processing industries, food processing industries, leather industry, tourism, etc. Those sectors which have the potential but seriously lack infrastructure and other support include traditional home-based industries like pottery, crafts, handlooms etc. …” |