Question

What is the major challenge faced by India’s rural economy?

• A. Lack of skilled labor in urban areas
• B. Declining share of agriculture in GDP without equivalent rural employment diversification
• C. Saturation of international markets
• D. Over-dependence on high-tech industries

Answer 1

Answer:

B. Declining share of agriculture in GDP without equivalent rural employment diversification

India’s rural economy faces challenges due to the decline in agriculture’s contribution to GDP. However, the lack of sufficient diversification into non-agricultural sectors such as manufacturing and services means that rural employment opportunities remain limited, resulting in low incomes