The correct option is (d) 1, 2 and 3
Explanation
Thestructural transformation of the Indian economy, specifically the shift in the sectoral composition of employment. According to standard development economics (e.g., the Lewis Model), as an economy grows, labor shifts from the primary sector (agriculture) to the secondary (industrial) and tertiary (services) sectors.
Statement-wise Analysis:
- Statement 1 is Correct: Over the decades, there has been a consistent decline in the percentage of the population dependent on agriculture. At the time of independence, approximately 72-74% of the workforce was engaged in agriculture. According to recent Periodic Labour Force Survey (PLFS) data, this share has declined to approximately 45-46%.
- Statement 2 is Correct: The decline in the share of agriculture has been accompanied by a corresponding rise in employment in the secondary and tertiary sectors. While the shift to the manufacturing sector has been slower than in comparable economies (often termed "jobless growth" in organized manufacturing), the secondary sector (driven significantly by construction) and the tertiary sector (services) have absorbed the surplus labor leaving agriculture. The share of the secondary sector in employment has risen from ~11% (1970s) to ~24-25% recently.
- Statement 3 is Correct: Within the industrial/secondary sector, small-scale manufacturing (now largely categorized under MSMEs) is significantly more labor-intensive than large-scale manufacturing. Large-scale industries tend to be capital-intensive. Consequently, small-scale industries are the most labor-absorbing segment within the manufacturing domain, playing a crucial role in employment generation.
Key Takeaway:
India's employment structure has witnessed a gradual shift where the workforce share of the primary sector has declined, while the shares of the secondary (especially construction) and tertiary sectors have increased. Small-scale industries remain vital for labor absorption in the manufacturing sector.