UPSC Prelims 1995·GS1·economy·economic sectors and development

One of the reasons for India’s occupational structure remaining more or less the same over the years has been that

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  1. Ainvestment pattern has been directed towards capital-intensive industriesCorrect
  2. Bproductivity in agriculture has been high enough to induce people to stay with agriculture
  3. Cceilings on land holdings have enabled more people to own land and hence their preference to stay with agriculture
  4. Dpeople are largely unaware of the significance of transition from agriculture to industry for economic development

Explanation

The correct answer is A because India followed an industrialization strategy that prioritized heavy and capital intensive industries rather than labor intensive manufacturing. While this led to industrial growth, these sectors did not generate enough jobs to absorb the surplus labor from agriculture. Consequently, even as the contribution of agriculture to the national income decreased significantly, a large majority of the workforce remained stuck in the farming sector due to a lack of sufficient employment opportunities in the industrial and service sectors. Unlike option B, agricultural productivity remained low, and unlike option C, land ceilings did not create enough incentive to keep people in farming by choice. The primary bottleneck was the inability of the industrial investment pattern to create mass employment.
economy: One of the reasons for India’s occupational structure remaining more or less the same over the years has been that

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