EMERGING ISSUES IN INDIAN ECONOMY — Economics STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsEMERGING ISSUES IN INDIAN ECONOMY3 Marks
Question
Urbanization leads to urban unemployment. Explain.
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Answer
A majority of Indian population lives in rural areas. So, the rate of migration toward urban areas is very high.
After the economic reforms of $1991,$ India adopted several policies which focused on boosting the industrial and service sector. As a result, people from rural areas migrated to urban areas for employment in these sectors.
On the other hand, the urban areas are unable to raise and provide job opportunities to all who migrate. This at times creates competition as there are more takers for a given work opportunity. This leads to urban unemployment.
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