From the early 1980s, the textile mills of Ahmedabad began to close down over a period of about ten years. Which chain of effects followed?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Workers lost secure jobs → they were driven to the informal sector → many families fell into poverty
When the Ahmedabad mills closed, about 1,30,000 workers lost their jobs and were driven to the informal sector. A whole class of workers fell from the middle class into poverty.
Option (1) Workers lost secure jobs → they moved into public sector jobs → the city’s incomes rose — Incorrect. They went to the informal sector, and the city faced a recession.
Option (2) Workers lost secure jobs → their trade union took over the mills → most jobs were saved — Incorrect. Over 1,30,000 jobs were lost.
Option (3) Workers lost secure jobs → they were driven to the informal sector → many families fell into poverty — Correct. Each step follows the one before.
Option (4) Workers lost secure jobs → they joined the mills of Mumbai → their wages rose — Incorrect. Mills in Mumbai were closing too, even faster.
NCERT (2026-27): “Box 6.2: Informalisation in Ahmedabad … In the early 1980s, textile mills all over the country began to close down. In some places, such as Mumbai, the mills closed rapidly. In Ahmedabad, the process of closure was long drawn out and spread over 10 years. Over this period, approximately over 80,000 permanent workers and over 50,000 non-permanent workers lost their jobs and were driven to the informal sector. The city experienced an economic recession and public disturbances, especially communal riots. A whole class of workers was thrown back from the middle class into the informal sector, into poverty. There was widespread alcoholism and suicides, children were withdrawn from school and sent to work.” |