Correct Option
The correct option is 2 only
Explanation
Structural transformation in an economy typically involves a transition where both the share of output (GDP) and the share of the workforce shift from the primary sector (agriculture) to the secondary (industrial) and tertiary (services) sectors. In India, this transition has exhibited a distinct divergence between production trends and employment trends.
Statement-wise Analysis
- Statement 1 is Incorrect: The shift in the sectoral contribution to the Gross Domestic Product (GDP) has been dramatic, with agriculture's share falling from over 50% at independence to approximately 18% in recent years. However, the shift in employment has been much slower. Agriculture still employs a disproportionately large share of the workforce (approximately 45-46% as per recent PLFS data) compared to its contribution to the national income.
- Statement 2 is Correct: The secondary and tertiary sectors have grown significantly in terms of value addition but have failed to generate sufficient employment to absorb the surplus labor moving out of agriculture. This phenomenon is often described as "jobless growth," particularly in the organized manufacturing sector, leading to continued reliance on the primary sector for livelihood.
- Statement 3 is Incorrect: The primary sector (agriculture and allied activities) continues to be the largest employer in India. According to the Periodic Labour Force Survey (PLFS) data, the primary sector employs approximately 45-46% of the total workforce. The figure of "less than 10%" is characteristic of developed industrial economies, not India.
Key Takeaway
Key Takeaway: The Indian economy is characterized by a structural mismatch where the primary sector contributes a small fraction to the GDP (less than 20%) but supports a massive portion of the workforce (over 45%), indicating low labor productivity and disguised unemployment in agriculture.