Question 1

Consider the following statements regarding concepts of labour and unemployment:
1. Labour Force refers to the number of persons actually working or willing to work and is always related to the prevailing wage rate.
2. Workforce refers only to those persons who are actually working and does not include those who are willing to work but are not currently employed.
3. Labour Supply is measured in terms of the number of persons and can increase or decrease even when the number of workers remains constant.

Accepted Answer

Only one. Statement 1 is incorrect. The Labour Force is not related to the wage rate. It is the Labour Supply that is always related to the wage rate. Statement 2 is correct. The workforce comprises only those who are actually working, excluding the unemployed who are willing to work. Statement 3 is incorrect. Labour Supply is measured in man-days, not in terms of the number of persons. The Labour Force is measured in terms of the number of persons. Therefore, only one statement is correct.

Question 2

Consider the following statements about types of unemployment:
1. Cyclical unemployment is associated with the economic structure of a country, such as a slow rate of capital formation, and is typically long-term in nature.
2. In a situation of disguised unemployment, a person can be removed from work without adversely affecting the overall productivity, implying their marginal productivity is zero.
3. Frictional unemployment, which arises from workers switching between jobs, is a common phenomenon in the industrial sector and is considered a long-term feature of an economy.

Accepted Answer

Only one. To determine the correct option, each statement must be evaluated for its accuracy.

1.  The first statement is incorrect. Unemployment resulting from the economic structure and slow capital formation is known as structural unemployment, which is long-term. Cyclical unemployment, in contrast, is caused by downturns in the business cycle (recessions) and is generally a short-term phenomenon.
2.  The second statement is correct. Disguised unemployment is characterized by a situation where labor's marginal productivity is zero. This means that even if some workers are withdrawn from a particular work, the total production does not fall.
3.  The third statement is incorrect. While frictional unemployment does arise from workers moving between jobs, it is a temporary and short-term condition inherent in any dynamic economy. It is not a long-term feature; long-term unemployment is characteristic of structural unemployment.

Since only the second statement is correct, and the first and third statements are incorrect, the correct count of accurate statements is one.

Question 3

Consider the following statements:
Statement-I: The Labour Force Participation Rate (LFPR) is calculated as the ratio of the total labour force to the total workforce, expressed as a percentage.
Statement-II: The labour force is a broader measure than the workforce as it includes both employed persons and those unemployed persons who are willing to work.

Accepted Answer

Statement-I is incorrect but Statement-II is correct. Statement-I is incorrect. The formula for the Labour Force Participation Rate (LFPR) is the total labour force divided by the total population above 15 years of age, multiplied by 100. The statement incorrectly uses 'total workforce' as the denominator. Statement-II is correct. The labour force is the sum of the workforce (persons actually working) and the number of unemployed persons (those willing to work but not working). This is derived from the formula: Number of persons unemployed = Labour force - Work force. Thus, the labour force is indeed a broader category than the workforce.

Question 4

Consider the following statements regarding the methods to measure unemployment in India:

1. The Usual Principal Status (UPS) method is considered the broadest measure as it captures seasonality and the magnitude of both unemployment and underemployment.
2. Under the Current Weekly Status (CWS) method, a person is considered employed if they have worked for at least 4 hours during the week preceding the survey.
3. The Current Daily Status (CDS) method generally gives the lowest estimate of unemployment as very few people can afford to remain without work over a long period.

How many of the above statements are correct?

Accepted Answer

None. The Usual Principal Status (UPS) uses a long reference period of 365 days and typically yields the lowest unemployment estimate, as most individuals find some form of work over a year. The Current Weekly Status (CWS) uses a 7-day reference period, and a person is deemed employed if they worked for at least one hour during that week. The Current Daily Status (CDS) is the most comprehensive measure, capturing daily fluctuations and underemployment, thus providing the highest unemployment estimate. Based on these definitions, statement 1 is incorrect because CDS, not UPS, is the broadest measure. Statement 2 is incorrect as the CWS threshold is one hour, not four. Statement 3 is incorrect because CDS provides the highest, not the lowest, unemployment estimate, and the reasoning provided applies to the UPS method. Consequently, none of the statements are correct.

Question 5

Consider the following pairs of reports/surveys and their publishing bodies:

1. Periodic Labour Force Survey (PLFS) : Labour Bureau, Ministry of Labour and Unemployment
2. Quarterly Employment Survey (QES) : National Statistical Office (NSO), Ministry of Statistics and Programme Implementation
3. Payroll Reporting (Formal Sector) : Labour Bureau, Ministry of Labour and Unemployment

How many of the above pairs are correctly matched?

Accepted Answer

None. All three pairs are incorrectly matched. 
Pair 1 is incorrect. The Periodic Labour Force Survey (PLFS) is published by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation, not the Labour Bureau. 
Pair 2 is incorrect. The Quarterly Employment Survey (QES) is conducted by the Labour Bureau under the Ministry of Labour and Unemployment, not the NSO. 
Pair 3 is incorrect. Payroll Reporting data is measured by the NSO under the Ministry of Statistics and Programme Implementation, not the Labour Bureau.

Question 6

With reference to the degrees of labour underutilisation as defined by the International Conference of Labour Statisticians (ICLS), consider the following statements:

1. The 'Potential Labour Force' is composed of individuals who want employment but have neither recently searched for a job nor are available at short notice.
2. 'Willing Non-Job Seekers' are individuals who fail to satisfy only one of the two criteria (availability or recent search) to be considered unemployed.
3. The 'Jobs Gap' is a measure of underemployment, which includes employed persons affected by insufficient working time.

How many of the above statements are correct?

Accepted Answer

None. All three statements are incorrect. The statements misrepresent the standard definitions of labour underutilisation indicators.

*   **Statement 1 is incorrect.** It incorrectly defines the 'Potential Labour Force'. The description provided—individuals wanting employment but neither searching nor available—actually defines 'Willing Non-Job Seekers'. The 'Potential Labour Force' comprises individuals who meet only one of the two criteria for unemployment (either they are available for work but not actively searching, or they are searching but not immediately available).

*   **Statement 2 is incorrect.** It incorrectly defines 'Willing Non-Job Seekers'. This statement describes the 'Potential Labour Force' (failing only one of the two criteria). As stated above, 'Willing Non-Job Seekers' are those who want a job but fail to meet *both* criteria of recent search and availability.

*   **Statement 3 is incorrect.** It confuses the 'Jobs Gap' with 'time-related underemployment'. The 'Jobs Gap' is a measure of the unmet need for employment among those *not employed* (it includes the unemployed and the potential labour force). In contrast, the issue of employed persons with insufficient working time is categorized as 'time-related underemployment', a distinct form of labour underutilisation.

Question 7

With reference to the organisations under the Ministry of Labour & Employment, consider the following statements:

1. The Directorate General of Mines Safety (DGMS) is responsible for advising Central and State Governments on the administration of the Factories Act.
2. The Labour Bureau is responsible for the collation and publication of the Consumer Price Index Numbers for Industrial Labourers.
3. The V.V. Giri National Labour Institute (VVGNLI) is a regulatory agency for occupational safety in coal, metalliferous, and oil mines.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The Directorate General Factory Advice Service and Labour Institutes (DGFASLI), not the DGMS, is tasked with advising Central and State Governments on the administration of the Factories Act. The DGMS is a regulatory agency for safety in mines. Statement 2 is correct. The Labour Bureau is responsible for the collation, collection, and publication of statistics, including important economic indicators like the Consumer Price Index Numbers for Industrial, Agricultural, and Rural Labourers. Statement 3 is incorrect. The V.V. Giri National Labour Institute is an autonomous body involved with research, training, and education on labour issues. The regulatory agency for safety in mines is the Directorate General of Mines Safety (DGMS). Therefore, only one statement is correct.

Question 8

Consider the following statements regarding social security schemes in India:

1. The National Pension Scheme for Traders, Shopkeepers and Self-Employed Persons is a voluntary scheme for individuals in the 18-40 age group whose monthly income is ₹15,000 or below.
2. Contribution to the Employees' Provident Fund (EPF) is optional for all employees in an organisation with 20 or more people if their monthly earnings are above ₹15,000.
3. The wage ceiling for eligibility under the Employees' State Insurance (ESI) scheme is ₹21,000 per month.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is incorrect. The eligibility criterion of a monthly income of ₹15,000 or below applies to the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) scheme. The National Pension Scheme for Traders, Shopkeepers and Self-Employed Persons is for those with an annual turnover not exceeding ₹1.5 crore. Statement 2 is correct. For organisations with 20 or more employees, EPF contribution is compulsory only for those earning up to ₹15,000 a month. For employees earning above this threshold, contribution to the EPF is optional. Statement 3 is correct. The Employees' State Insurance (ESI) scheme has a wage ceiling of ₹21,000 per month for eligibility. Therefore, two statements are correct.

Question 9

Consider the following statements:

Statement-I: The Code on Industrial Relations, 2020, establishes a fund contributed to by the Central government, State government, and aggregators for unorganised, gig, and platform workers.

Statement-II: The Code on Industrial Relations, 2020, subsumed three previous labour laws and provides for seeking government permission for closure, lay-off, and retrenchment.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is incorrect but Statement-II is correct. Statement-I is incorrect. The provision for a fund for unorganised, gig, and platform workers, with contributions from the Central government, State government, and aggregators, is a key feature of The Code on Social Security, 2020, not The Code on Industrial Relations, 2020. Statement-II is correct. The Code on Industrial Relations, 2020, was created by subsuming three prior labour laws. Its key provisions include defining a worker, requiring government permission for closure, lay-off, and retrenchment, and rules for negotiating with trade unions. Thus, Statement-I is incorrect, but Statement-II is correct.

Question 10

Consider the following statements regarding various surveys and reports on employment in India:
1. The 'Time Use Survey' is conducted by the Centre for Monitoring Indian Economy (CMIE).
2. The Ministry of Labour and Employment is responsible for the Annual Employment-Unemployment Survey Report.
3. The World Employment and Social Outlook (WESO) Report is a publication of the International Labour Organisation (ILO).
How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is incorrect. The text explicitly states that the National Statistical Office (NSO), MoSPI conducts the 'Time Use Survey'. The CMIE is a privately owned company that provides its own unemployment estimates. Statement 2 is correct. The text refers to the '6th Annual Employment-Unemployment Survey Report (2016–17) conducted by the Ministry of Labour and Employment'. Statement 3 is correct. The text mentions the 'International Labour Organisation's (ILO's) World Employment and Social Outlook (WESO) Report 2025'.

Question 11

With reference to the occupational structure in India (2020-21), consider the following statements:
1. In urban areas, the primary sector employs the largest proportion of the workforce.
2. In rural areas, the share of the workforce in the secondary sector is less than that in the tertiary sector.
3. Overall, the tertiary sector has the largest proportion of the Indian workforce employed.
How many of the above statements are correct?

Accepted Answer

None. Statement 1 is incorrect. In urban areas, the tertiary sector employs the largest chunk of the workforce at 60.8%, not the primary sector which employs only 6.5%. The statement incorrectly applies the characteristic of the rural workforce (where the primary sector is dominant) to the urban workforce. Statement 2 is incorrect. In rural areas, the secondary sector's share is 20.7%, while the tertiary sector's share is 18.6%. Therefore, the secondary sector's share is larger than the tertiary sector's share. Statement 3 is incorrect. Overall, the primary sector has the largest proportion of the workforce employed at 46.5%, followed by the tertiary sector at 29.6%.

Question 12

Consider the following statements:
Statement-I: Since 1950-51, the share of the workforce engaged in India's primary sector has decreased, while the shares in the secondary and tertiary sectors have increased.
Statement-II: The tertiary sector has now surpassed the primary sector to become the largest employer of the Indian workforce as of 2024-25.
Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is correct but Statement-II is incorrect.. Statement-I is correct. The provided data shows that the percentage of the workforce in the primary sector decreased from 72.7% in 1950-51 to 45% in 2024-25. During the same period, the secondary sector's share increased from 10% to 25%, and the tertiary sector's share increased from 17.3% to 30%. Statement-II is incorrect. Although the share of the primary sector has declined, it still employs the largest proportion of the workforce at 45% in 2024-25, which is greater than the tertiary sector's share of 30%. Therefore, the primary sector remains the largest employer.

Question 13

Consider the following statements regarding the phenomenon of 'Jobless Growth' in the Indian context:
1. It is a situation where the rate of employment growth is significantly faster than the rate of GDP growth.
2. A primary reason for this phenomenon post-1991 has been the stagnation and dominance of the manufacturing sector, which is less labour-intensive compared to the service sector.
3. The progressive decline in Employment Elasticity, which even turned negative for the agricultural sector between 2004-05 and 2011-12, is a key indicator of jobless growth.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. Jobless growth describes a situation where an economy's GDP increases, but the level of employment does not see a corresponding rise. This means GDP growth is significantly faster than employment growth. The statement incorrectly reverses this relationship.

Statement 2 is incorrect. Post-1991, India's economic growth has been primarily driven by the service sector, not the manufacturing sector. While the service sector has grown rapidly, it is generally less labour-intensive in its capacity to absorb a large, low-skilled workforce compared to the manufacturing sector. The statement misidentifies the dominant growth-driving sector and incorrectly compares the labour intensity.

Statement 3 is correct. Employment Elasticity measures the percentage change in employment for every one percent change in economic growth. A progressive decline in this elasticity indicates that economic growth is creating fewer jobs over time. A negative elasticity, as was observed in the agricultural sector between 2004-05 and 2011-12, signifies that employment is actually decreasing despite economic growth. This phenomenon is a core characteristic and a key quantitative indicator of jobless growth.

Since only one statement is correct, the correct option is 'a'.

Question 14

With reference to the classification of the workforce in India, consider the following statements:
1. According to the National Commission for Enterprises in the Unorganised Sector (NCEUS), workers in private establishments hiring 10 or more workers are termed informal workers.
2. Casual workers are distinguished from regular workers by the fact that they are not entitled to any social security benefits like an employees' provident fund or overtime payment.
3. The category of 'self-employed' primarily includes those who sell their labour power to an employer in return for a wage.

How many of the above statements are correct?

Accepted Answer

None. Statement 1 is incorrect. The National Commission for Enterprises in the Unorganised Sector (NCEUS) defines workers in the organised sector (private establishments with 10 or more workers) as 'formal workers'. Workers in the unorganised sector (establishments with fewer than 10 workers) are classified as 'informal workers'. Statement 2 is incorrect. While casual workers may not receive all social security benefits like gratuity or pension, they are entitled to certain protections such as an employees' provident fund, regular working hours, and overtime payment. Statement 3 is incorrect. The 'self-employed' category comprises individuals who work for themselves and do not sell their labour to an employer for a wage. Those who sell their labour for a wage are classified as wage employees.

Question 15

Consider the following statements:
Statement-I: The Beveridge Curve is a graphical representation that illustrates a direct and upward-sloping relationship between the unemployment rate and the job vacancy rate.
Statement-II: A recessionary period is indicated by a point on the curve where there is a high rate of unemployment and a low rate of job vacancy.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is incorrect but Statement-II is correct. Statement-I is incorrect. The text explicitly states that the Beveridge Curve is hyperbolic shaped and slopes downward, representing an inverse relationship between the unemployment rate (X-axis) and the job vacancy rate (Y-axis). A higher rate of unemployment normally occurs with a lower rate of vacancies. Statement-II is correct. The text directly mentions that a recessionary period is indicated by that point on the curve where there is a high rate of unemployment and a low rate of job vacancy. Since Statement-I is incorrect, it cannot be explained by Statement-II.

Question 16

Consider the following pairs of Government Initiatives and their corresponding implementing Ministries:
1. Prime Minister's Employment Generation Programme (PMEGP) : Ministry of Rural Development
2. SMILE Scheme : Ministry of Social Justice and Empowerment
3. Future Skills PRIME : Ministry of Electronics and Information Technology
How many of the above pairs are correctly matched?

Accepted Answer

Only two. Statement 1 is incorrect. The Prime Minister's Employment Generation Programme (PMEGP) was launched by the Ministry of Micro, Small & Medium Enterprises, not the Ministry of Rural Development. Statement 2 is correct. The SMILE (Support for Marginalised Individuals for Livelihood and Enterprise) scheme was developed by the Ministry of Social Justice and Empowerment for the comprehensive rehabilitation of beggars. Statement 3 is correct. The Future Skills PRIME program was launched by the Ministry of Electronics and Information Technology (MeitY) for re-skilling and up-skilling of IT manpower.

Question 17

With reference to government interventions for employment, consider the following statements:
1. The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0 is a credit-linked subsidy programme for generating self-employment through micro-enterprises.
2. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) aims to provide guaranteed wage employment for unskilled manual work.
3. The Skill Strengthening for Industrial Value Enhancement (STRIVE) is a Central Sector Scheme exclusively funded by the Government of India.
How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. It swaps the features of two different schemes. The Prime Minister's Employment Generation Programme (PMEGP) is the credit-linked subsidy programme for micro-enterprises. PMKVY 4.0, on the other hand, aims to provide skill courses to youth. Statement 2 is correct. MGNREGA's objective is to provide 100 days of guaranteed wage employment annually to rural households willing to do unskilled manual work. Statement 3 is incorrect. While STRIVE is a Central Sector Scheme, the text explicitly states that it is a World Bank-assisted scheme, meaning it is not exclusively funded by the Government of India.

Question 18

Consider the following statements:
Statement-I: The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has been a significant driver of financial inclusion in rural India.
Statement-II: Under MGNREGA, wage payments are disbursed directly into the bank or post office accounts of the workers.
Which one of the following is correct in respect of the above statements?

Accepted Answer

Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.. Statement-I is correct. The provided text lists 'Financial Inclusion' as an achievement of MGNREGA, stating that it has promoted financial literacy and inclusion. Statement-II is also correct. The text specifies that 'Wage payments through bank and post office accounts' is the mechanism used. Statement-II provides the direct cause for the effect described in Statement-I; the mandatory use of bank/post office accounts for wage disbursement is the reason why the scheme has promoted financial inclusion. Therefore, both statements are correct, and Statement-II is the correct explanation for Statement-I.

Question 19

Consider the following statements regarding India's four labour codes:
1. The Code on Wages, 2019, mandates a national floor wage to be set by the Central Government.
2. The Industrial Relations Code, 2020, introduces provisions for a social security fund for gig and platform workers.
3. The Occupational Safety, Health and Working Conditions (OSH) Code, 2020, provides for a single registration for an establishment, replacing multiple registrations under previous laws.
How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is correct; the Code on Wages, 2019, empowers the Central Government to fix a national floor wage, which serves as a baseline for state-level minimum wages. Statement 2 is incorrect; the provisions for social security for gig and platform workers are part of the Code on Social Security, 2020, not the Industrial Relations Code. Statement 3 is correct; the OSH Code, 2020, aims to simplify compliance by providing for a single registration for an establishment, replacing the need for multiple registrations required under the 13 laws it subsumes.

Question 20

Consider the following statements regarding the Industrial Relations Code, 2020:
Statement-I: The Code allows industrial establishments with up to 300 workers to lay off or retrench employees without prior government approval.
Statement-II: A primary objective of this provision is to improve the ease of doing business and provide greater operational flexibility to a larger number of firms.

Accepted Answer

Both statements are correct and Statement-II correctly explains Statement-I.. Statement-I is correct. The Industrial Relations Code, 2020, raises the threshold for requiring government permission for lay-offs and retrenchment from 100 to 300 workers. This effectively exempts firms with fewer than 300 workers from this requirement. Statement-II is also correct and provides the primary rationale for this change, which is to reduce the compliance burden and enhance operational flexibility, thereby improving the ease of doing business and potentially encouraging employment.

Question 21

Consider the following statements regarding the new definition of 'wages' under India's four Labour Codes:
1. It standardizes the definition of wages across all four labour codes.
2. It mandates that allowances cannot exceed 50% of total remuneration.
3. This change will likely decrease social security contributions for most employees.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only. Statements 1 and 2 are correct. The new codes provide a uniform definition of 'wages' and cap allowances at 50% of total pay. Statement 3 is incorrect; by ensuring at least 50% of pay is considered 'wages' for calculation purposes, it will increase the base for calculating social security contributions like Provident Fund (PF), thus increasing them for many employees, not decreasing them.

Question 22

Consider the following statements regarding the relationship between economic growth and employment in India:

Statement-I: A recurring concern in the Indian economy is that periods of high GDP growth have not been accompanied by proportional employment generation.

Statement-II: This phenomenon is attributed to a consistently high employment elasticity of growth across major sectors.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is correct but Statement-II is incorrect.. Statement-I is correct as the phenomenon of 'jobless growth' or a growth-employment mismatch is a widely discussed challenge in the Indian economy. Statement-II is incorrect because a high employment elasticity would mean that growth is creating many jobs. The mismatch described in Statement-I is caused by a low, not high, employment elasticity of growth, indicating that a 1% increase in GDP generates a less than 1% increase in employment.

Question 23

Consider the following statements regarding India's economic policies and employment landscape:

1. The Production Linked Incentive (PLI) scheme is primarily a demand-side intervention designed to boost consumer spending.
2. A common critique of the PLI schemes is that they have disproportionately benefited capital-intensive sectors over labor-intensive ones, thus limiting direct large-scale job creation.
3. Disguised unemployment, particularly prevalent in the agricultural sector, is a significant characteristic of India's structural employment challenge.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is incorrect. The PLI scheme is a supply-side intervention that incentivizes domestic production and investment by offering financial rewards on incremental sales. It is not designed to directly boost consumer demand. Statement 2 is correct. A significant critique leveled against the PLI scheme is its focus on sectors like electronics and automobiles, which are capital-intensive. This focus may lead to higher productivity and output but might not generate employment at the scale required for India's labor force, compared to more labor-intensive sectors. Statement 3 is correct. Disguised unemployment, a situation where more people are employed than are actually needed (leading to zero or very low marginal productivity), is a classic feature of India's economy, especially in the agricultural sector. This form of underemployment is a core component of the country's structural employment problem.

Question 24

Consider the following statements regarding the challenges and characteristics of employment in the Indian economy:

1. A primary challenge in transforming India's labour force is the persistently low Female Labour Force Participation Rate (FLFPR).
2. The Periodic Labour Force Survey (PLFS), the main source for unemployment data, is conducted by the Ministry of Labour and Employment.
3. Building 'inclusive employment' necessitates policies aimed at reducing the wage gap between formal and informal sector workers.

Which of the statements given above is/are correct?

Accepted Answer

1 and 3 only. Statement 1 is correct; India's low FLFPR is a major structural issue hindering inclusive growth and labour force transformation. Statement 2 is incorrect; the PLFS is conducted by the National Statistical Office (NSO), which is under the Ministry of Statistics and Programme Implementation (MoSPI), not the Ministry of Labour. Statement 3 is correct; inclusivity in employment directly relates to reducing disparities, and the significant wage gap between the formal and informal sectors is a key target for such policies.

Question 25

With reference to the status of women in India's formal manufacturing sector, as highlighted in recent analyses, consider the following statements:
1. The proportion of women in the formal manufacturing workforce has seen a decline between 2015-16 and 2022-23.
2. A significant majority of all women employed in formal manufacturing are concentrated in a few southern and western states.
3. The tobacco industry is a notable exception where female employment surpasses male employment.
How many of the above statements are correct?

Accepted Answer

All three. Statement 1 is correct. Recent data indicates that women's share in formal manufacturing has declined from 20.9% in 2015-16 to 18.9% in 2022-23. Statement 2 is correct. There is a strong regional concentration, with Tamil Nadu, Karnataka, Maharashtra, Andhra Pradesh, and Gujarat together accounting for nearly 75% of all women in formal manufacturing. Statement 3 is correct. The analysis points out that while women are underrepresented in most industries, the tobacco industry is the only formal manufacturing sector where more women are employed than men. Since all three statements are correct, the correct option is 'All three'.

Question 26

With reference to the formalisation of India's workforce, consider the following statements:
Statement-I: A significant portion of women employed in India's manufacturing sector works in informal arrangements, lacking social security benefits.
Statement-II: A worker is classified as being in the formal sector solely based on having a written job contract in a registered enterprise.

Accepted Answer

Statement-I is correct, but Statement-II is incorrect.. Statement-I is correct. Official data consistently indicates that India's economy has a large informal sector. Within manufacturing, a substantial part of employment is informal, and women's participation in the formal segment is particularly low. This implies that many women in the sector work in informal capacities, characterized by the lack of social security benefits like provident funds, health insurance, and paid leave.

Statement-II is incorrect. The classification of a worker as 'formal' is not solely determined by having a written contract or working in a registered enterprise. As per established definitions, the primary criterion is the worker's eligibility for social security benefits. An individual is considered to be in formal employment if they are eligible for at least one such benefit (e.g., provident fund, gratuity, health insurance). Therefore, an employee in a registered company without such benefits would still be classified as an informal worker.

Question 27

With reference to labour and enterprise surveys in India, consider the following statements:
1. The Periodic Labour Force Survey (PLFS) provides quarterly estimates for urban unemployment rates.
2. The Annual Survey of Unincorporated Sector Enterprises (ASUSE) is conducted by the Labour Bureau.
3. ASUSE's coverage excludes enterprises engaged in crop production and plantation activities.
Select the correct answer using the code given below:

Accepted Answer

1 and 3 only. Statement 1 is correct; a key feature of the PLFS is providing more frequent unemployment data for urban areas. Statement 2 is incorrect; ASUSE is conducted by the National Sample Survey Office (NSSO), not the Labour Bureau. This is a common point of confusion. Statement 3 is correct; ASUSE focuses on the non-agricultural unincorporated sector, explicitly excluding activities like crop production which are covered by other specific surveys.

Question 28

With reference to the legal framework of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, consider the following statements:

1. The Gram Sabha has the authority to conduct social audits of all works executed within the Gram Panchayat.
2. The wage rate notified by the Central Government for the scheme cannot be below the statutory minimum wage applicable to agricultural laborers in the respective state.
3. State Governments are liable to pay an unemployment allowance from their own funds if employment is not provided within the stipulated time.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is correct. The legal framework of the MGNREGA explicitly empowers the Gram Sabha to monitor the execution of all works and conduct regular social audits of projects undertaken within its jurisdiction. This is a key feature for ensuring transparency and local accountability. Statement 2 is incorrect. While there has been significant debate and legal scrutiny on this matter, the Act itself does not legally mandate that the MGNREGA wage rate, notified by the Central Government, must be equal to or higher than the statutory minimum wage for agricultural laborers in a state. In practice, there have been several instances where the notified MGNREGA wage has been lower than the state's minimum wage. Statement 3 is correct. A core provision of the Act is the guarantee of employment. If an applicant is not provided work within fifteen days of applying, they are legally entitled to receive a daily unemployment allowance. The financial liability for paying this allowance falls upon the respective State Government from its own funds.

Question 29

Consider the following statements regarding the implementation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA):

Statement-I: A decline in the officially recorded person-days generated under MGNREGA can occur even during periods of significant rural economic distress.
Statement-II: Such a decline is primarily caused by a voluntary shift of the rural workforce towards more lucrative private sector employment opportunities.

Accepted Answer

Statement-I is correct but Statement-II is incorrect.. Statement-I is correct. The official generation of person-days under MGNREGA can decline despite high underlying demand for work. This paradox often arises from administrative and implementation challenges, such as budget constraints, delays in wage payments, and technical issues with digital monitoring systems. These factors can suppress the recorded demand and the allocation of work, leading to lower official figures even when rural distress is high.

Statement-II is incorrect. It inverts the causal logic for the phenomenon described in Statement-I. During periods of significant rural distress, lucrative alternative employment opportunities are typically scarce, not abundant. Therefore, a voluntary shift by the workforce is an unlikely primary cause for a decline in MGNREGA work demand. The decline in official metrics is more plausibly attributed to systemic inefficiencies that prevent the scheme from meeting the actual, high demand for work, rather than a reduction in the demand itself.

Question 30

Consider the following statements regarding the categories of permissible works under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS):

1. Water conservation and water harvesting structures on community land.
2. Provision of irrigation facility on land owned by any rural household.
3. Construction of all-weather rural roads for connectivity.

Which of the statements given above is/are correct?

Accepted Answer

1 and 3 only. Statement 1 is correct; water conservation and water harvesting structures on community land are a core component of the permissible works aimed at improving natural resource management. Statement 2 is incorrect; this is a classification swap. While the scheme allows for irrigation and other works on private land, this benefit is targeted and restricted to households belonging to specific categories like Scheduled Castes, Scheduled Tribes, and Below Poverty Line families. It is not available to 'any' rural household. Statement 3 is correct; providing rural connectivity to unconnected habitations through the construction of all-weather roads is a key category of permissible works under the scheme's framework.

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