Read the following statements carefully and choose the correct option regarding Assertion (A) and Reason (R).
Assertion (A): Globalization led to increased inequality in India.
Reason (R): Growth was unevenly distributed, benefiting mostly urban elite and service sectors.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Both A and R are true and R is the correct explanation of A.
Globalization in India accelerated economic growth but also widened the wealth gap. While it opened markets and created high-paying jobs in the service and technology sectors, these benefits were largely concentrated in urban areas.
The agricultural sector, which employs the majority of the population, did not see proportional growth. This uneven distribution of capital and opportunities led to increased income inequality between the urban elite and the rural poor, validating both the assertion and its reason.