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Which sector of the economy experiences the highest unemployment in India?
Question

Which sector of the economy experiences the highest unemployment in India?

A.

Industry

B.

Agriculture

C.

IT sector

D.

Services

Correct option is B

The correct answer is: (b) Agriculture
Explanation:
In India, the agriculture sector experiences the highest unemployment, particularly disguised unemployment, where more people are employed than actually needed for the tasks. This is because a large portion of India’s population is still dependent on agriculture for their livelihood, but the sector is often characterized by low productivity and underemployment. Many individuals in rural areas work in agriculture, even though their contributions may not significantly affect overall production.
Information Booster:
  • Agriculture's Contribution to GDP: While agriculture employs a significant portion of India’s population, its contribution to GDP has declined in recent years, reflecting inefficiencies in the sector.

  • Shift to Urbanization: As more people move from rural to urban areas seeking better opportunities, unemployment in the agriculture sector remains a significant challenge, particularly during off-season periods or when agricultural productivity is low.

Additional Information:

  • Industrial Sector: The industrial sector generally experiences lower unemployment compared to agriculture, especially as India’s manufacturing and industrial sectors continue to grow.

  • IT and Services Sector: The IT and services sectors in India are expanding rapidly and tend to have lower unemployment rates, driven by high demand for skilled professionals in these areas.

  • Economic Reforms and Employment: Reforms aimed at modernizing agriculture, such as irrigation improvements and technology adoption, can help reduce unemployment in the sector over time.

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