What was the primary reason for the continued dependence of a large proportion of the Indian population on agriculture until 1990?

The correct option is The industrial and service sectors failed to absorb the surplus agricultural labour.

Explanation

In a developing economy, structural transformation typically involves a shift of the workforce from the primary sector (agriculture) to the secondary (industrial) and tertiary (service) sectors. This transition is driven by higher productivity and wage levels in the non-agricultural sectors. In India, despite the decline in agriculture's share of GDP, the shift in the workforce was disproportionately slow until 1990.

Statement-wise Analysis

• Agriculture was the most pro Agriculture was not the most profitable sector; rather, it was characterized by low productivity, disguised unemployment, and subsistence farming. The dependence persisted despite low profitability, not because of it.
• The industrial and service sectors failed to absorb the surplus agricultural labour. is Correct: The primary reason for the continued pressure on land was the inability of the industrial and service sectors to generate sufficient employment. Although the industrial sector contributed significantly to GDP growth, it failed to absorb the surplus labor exiting agriculture. This phenomenon is often attributed to capital-intensive industrialization and restrictive policies (License Raj) that hindered the growth of labor-intensive manufacturing.
• People preferred the rural lifestyle over urban employment. is Incorrect: While social factors exist, the lack of migration was primarily economic (lack of "pull" factors like jobs) rather than a mere lifestyle preference. When jobs are available, rural-to-urban migration typically increases.
• Government policies prohibited migration to cities. is Incorrect: There were no government policies explicitly prohibiting migration from rural to urban areas. The Constitution of India guarantees freedom of movement and residence within the territory of India.

Key Takeaway: The Indian economy prior to 1990 experienced a structural mismatch where the share of agriculture in GDP declined significantly, but its share in employment remained high due to the failure of the industrial sector to create mass employment.