Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Employment - Growth, Informalisation and Other Issues

Question:

In 1990's, which disheartening development was observed in relation to India's growth and employment?

Options:

Widening gap between growth of GDP and employment

Rate of unemployment reduced due to high industrial growth

Famine and draught led to an increase in unemployment

All of the above

Correct Answer:

Widening gap between growth of GDP and employment

Explanation:

During late 1990's, 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.