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Read the following case study carefully and answer questions based on it.

Employment has remained one of the top challenges of Indian policy makers, and over the years this has only become more complex. One there is considerable improvement in literacy, schooling and attainment of higher education and skills and vocational education in the country. The educated and trained manpower looks not for jobs alone but for decent jobs with better work environments, regular employment and better remuneration. However, job creation for this kind of employment has not kept pace with the increase in the number of job seekers. Two the aspirations of the labour class have been rising with the overall development of the country. Three the growth of industry and service sectors has been very uneven across different regions and states. This has resulted in a mismatch in employment opportunities and the supply of labour at local levels. Fourth there is a strong divergence between structural changes in the composition of output and employment. The industry and services sectors, which constitutes more than 80 percent of the gross value added in the country, provides employment to 54.4 percent of the workforce, and agriculture which accounted for 18.29 percent of GVA in 2019-20, retains 45.6 percent workforce. This divergence in sectoral in sectoral share in income and employment is manifested in the rising gap in per worker income in the agriculture and non-agriculture sectors, lastly, due to job security assured salary and other pay and prestige associated with it, preference towards government jobs has increased tremendously.

India has experienced more or less consistent and steady changes in the structure of the output of the economy, especially after the economic reforms of 1990-91. The growth rate of the economy, measured by the gross value added, at constant prices, accelerated from 4.27 percent twenty years before the economic reforms to 6.34 percent twenty years after the reforms. The growth rate in GVA showed further acceleration to reach 6.58 percent during 2010-11 to 2019-20 at 2011-12 prices. This growth trajectory was accompanied by a steady decline in the share of agriculture and a steady increase in the share of non-agriculture sector in total economy. The change in sectoral shares accelerated over time.

The difference in the growth rate of GVA at constant prices for 1970-71 and 2010-11 is approximately _____ percent.

Solution

Correct Option: 3

Per the passage, growth rate in 1970-71 (twenty years before reforms) = 4.27%, and in 2010-11 (twenty years after reforms) = 6.34%. Difference = 6.34 - 4.27 = 2.07, approximately 2.09%.

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