With reference to the Indian economy after the 1991 economic liberalization, consider the following statements:

1. Worker productivity (₹ per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas.
2. The percentage share of rural areas in the workforce steadily increased.
3. In rural areas, the growth in non-farm economy increased.
4. The growth rate in rural employment decreased. Which of the statements given above is/are correct?

According to a NITI Aayog paper titled “Changing Structure of Rural Economy of India Implications for Employment and Growth 2017”:

1. Worker productivity, measured as income per worker, increased in both rural and urban areas. In rural areas, it rose from Rs. 37273 in 2004-05 to Rs. 101755 in 2011-12. In urban areas, it increased from Rs. 120419 in 2004-05 to Rs. 282515 in 2011-12. Thus, statement 1 is incorrect.

2. The rural share of the workforce has been declining due to urbanization. In 2011, 68.8% of India’s population and 72.4% of the workforce resided in rural areas. The rural share in the workforce decreased from 77.8% in 1993-94 to 70.9% in 2011-12. Hence, statement 2 is incorrect.

3. The non-farm economy has expanded in rural areas. About two-thirds of rural income is now generated from non-agricultural activities. The share of agriculture in the rural economy decreased from 57% in 1993-94 to 39% in 2011-12. Therefore, statement 3 is correct.

4. After 2004-05, rural areas experienced negative growth in employment despite high output growth. The rural employment growth rate was 1.45% during 1994-2005, but it fell to -0.28% between 2005-12. Thus, statement 4 is correct.

Hence, statements 3 and 4 are correct.