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Economists describe India's growth pattern as having moved from agriculture directly to services, with industry playing a relatively smaller role in employment. Which concern is most directly linked to this pattern?

The main concern is that services-led growth may not create enough productive jobs for India's large low-skilled workforce, since many service jobs need higher skills. This is why manufacturing and employment-oriented policies are emphasised alongside services growth.

  1. AServices growth has created enough formal jobs to absorb all surplus agricultural labour
  2. BServices-led growth may not generate sufficient productive employment for the large low-skilled labour forceCorrect
  3. CIndustry's share of employment has exceeded that of agriculture
  4. DThe pattern implies India has no need for manufacturing policy

Explanation

Services such as IT are skill-intensive and absorb limited low-skilled labour, so the surplus labour in agriculture is not fully absorbed. This is why policies promote manufacturing and employment. The other options either claim full absorption or contradict the facts, since agriculture still employs more people than industry.

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