Question

State and elaborate whether the following statements are true/false, with valid arguments: (a) The Indian economy has shown satisfactory progress towards formalization of the workforce in the recent years.
(b) In the Indian rural landscape, agricultural diversification has emerged as a reasonable alternative to fill up the gaps in income.

Hint:

When assessing formalization, consider factors like organized vs unorganized sectors and policies like labor laws. For agricultural diversification, consider crop variety, economic resilience, and market access.

Answer 1

(a) Formalization of Workforce in India: This statement is partially true. India has made significant strides towards formalizing its workforce, especially in sectors such as manufacturing and services, with increasing numbers of workers in organized sectors. Government initiatives like the Pradhan Mantri Rojgar Protsahan Yojana and the launch of labor reforms to ensure better working conditions have contributed to this. However, a large proportion of the workforce remains informal, especially in agriculture and small-scale enterprises. Therefore, while progress has been made, challenges remain in full formalization.
(b) Agricultural Diversification in Rural India: This statement is true. Agricultural diversification involves the shift from traditional crops to high-value crops, horticulture, livestock, and agro-processing activities. This has become an important strategy to increase income and reduce dependence on mono-cropping in rural areas. Diversification helps mitigate risks associated with climate change and fluctuating market prices. It has proven to be a reasonable alternative to increase rural income and improve livelihoods.