Which statement best reflects the failure of structural transformation in Indian agriculture between 1950–1990?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 65% of population remained in agriculture.
Structural transformation typically involves a significant shift of both GDP share and labour force from agriculture to industry and services. While agriculture's contribution to India's GDP declined significantly between 1950–1990, the proportion of the population dependent on it remained stubbornly high at around 65%. This reflects a failure because the industrial and service sectors failed to generate enough jobs to absorb the surplus labour, leading to disguised unemployment and low productivity per worker in the primary sector.