UPSC Prelims 2019 CSAT Paper II · Q46 of 79 Comprehension medium

Passage

Passage – 5 A vast majority of Indians are poor, with barely 10 percent employed in the organised sector. We are being convinced that vigorous economic growth is generating substantial employment. But this is not so. When our economy was growing at 3 percent per year, employment in the organised sector was growing at 2 percent per year. As the economy began to grow at 7 – 8 percent per year, the rate of growth of employment in the organised sector actually declined to 1 percent per year.

The above passage seems to imply that 1. most of modern economic growth is based on technological progress. 2. much of modern Indian economy does not nurture sufficient symbiotic relationship with labour-intensive, natural resource-based livelihoods. 3. service sector in India is not very labour-intensive. 4. literate rural population is not willing to enter organised sector. Which of the statements given above are correct ?

  1. (a) 1 and 2 only
  2. (b) 3 and 4 only
  3. (c) 1, 2 and 3 only ✓ UPSC's answer
  4. (d) 1, 2, 3 and 4

Why the answer is (c)

• The passage highlights that despite high economic growth (7-8%), organised sector employment growth declined to 1%, indicating that growth is not generating proportional jobs in the formal sector.

• This disconnect implies that modern economic growth is driven by factors other than direct labour absorption, such as technological progress (Statement 1), which increases productivity without necessarily increasing headcount.

• The lack of job creation in the organised sector suggests the economy is not sufficiently nurturing symbiotic relationships with labour-intensive, natural resource-based livelihoods (Statement 2), as these sectors typically absorb large workforces.

• The decline in organised employment growth despite high GDP growth also points to the nature of the growth engine; if the service sector were highly labour-intensive, it would have absorbed more workers, implying it is not very labour-intensive in this context (Statement 3).

• Statement 4 is incorrect because the passage attributes the low employment to structural economic factors (growth type, sectoral composition) rather than the unwillingness of the rural population to enter the organised sector.

• Therefore, statements 1, 2, and 3 are correct implications of the passage, while statement 4 is not supported by the text.

Why the other options are wrong

(a) 1 and 2 only
Option (a) is incorrect because it excludes Statement 3, which is a valid implication regarding the non-labour-intensive nature of the service sector driving growth without proportional employment.
(b) 3 and 4 only
Option (b) is incorrect because it includes Statement 4, which is not implied by the passage, and excludes Statements 1 and 2, which are central to the argument about technological and structural economic shifts.
(d) 1, 2, 3 and 4
Option (d) is incorrect because it includes Statement 4, which falsely attributes the employment gap to the unwillingness of the rural population rather than structural economic factors.

Asked in the CSAT Paper II of the UPSC Civil Services Preliminary Examination 2019, held on 2 June 2019. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

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