Question

Identify the CORRECT feature(s) of the Indian labour market since the year 2000.

• A. A shift in employment from low-productive agriculture sector to relatively high-productive non-agriculture sector.
• B. The construction sector has high employment elasticity.
• C. The production process has become more labour-intensive.
• D. The service sector has been the primary driver of India’s growth.

Hint:

India’s post-2000 growth pattern is often described as service-led growth with gradual movement of labour away from agriculture toward construction and services.

Answer 1

The Correct Option is A, B, D

Step 1: Understand the structural transformation of the Indian economy.
Since the year 2000, the Indian economy has undergone significant structural transformation.
There has been a gradual movement of labour away from agriculture toward industry and services.
Agriculture is generally considered a low-productivity sector because output per worker is relatively lower compared to non-agricultural sectors.
On the other hand, sectors such as manufacturing, construction, and services tend to have higher productivity and higher income-generating potential.

Step 2: Analyze option (A).
Option (A) states that employment shifted from low-productive agriculture to relatively high-productive non-agriculture sectors.
This trend has been clearly observed in India after 2000.
A growing number of workers moved into construction, manufacturing, transport, trade, and service activities.
This process is known as structural change or labour reallocation.
Hence, option (A) is correct.

Step 3: Analyze option (B).
Employment elasticity refers to the responsiveness of employment to economic growth.
The construction sector in India has absorbed a large number of workers, especially semi-skilled and unskilled labour migrating from rural areas.
Even moderate growth in construction activity has generated substantial employment opportunities.
Therefore, the construction sector is considered to have relatively high employment elasticity.
Hence, option (B) is correct.

Step 4: Analyze option (C).
Option (C) states that the production process has become more labour-intensive.
However, over time, many industries in India have increasingly adopted capital-intensive and technology-intensive methods of production.
Automation, mechanisation, digitisation, and improved technology have reduced dependence on manual labour in several sectors.
Thus, production processes have not generally become more labour-intensive.
Hence, option (C) is incorrect.

Step 5: Analyze option (D).
The service sector has contributed the largest share to India’s GDP growth since 2000.
Activities such as information technology, banking, finance, telecommunications, trade, transport, and professional services have expanded rapidly.
India’s economic growth has therefore been largely service-sector driven.
Hence, option (D) is correct.

Step 6: Final conclusion.
The Indian labour market since 2000 has been characterized by labour shifting toward non-agricultural sectors, high employment elasticity in construction, and service-led economic growth.
Therefore, the correct statements are
\[ \boxed{(A),\ (B)\text{ and }(D)} \]