Defend or refute the following statement with valid explanation: ‘Disguised unemployment is a common form of unemployment in rural India’

Class 12th Economics, Question -Defend or refute the following statement with valid explanation: ‘Disguised unemployment is a common form of unemployment in rural India’

Question 15:Defend or refute the following statement with valid explanation: ‘Disguised unemployment is a common form of unemployment in rural India’

The correct answer is – The statement “Disguised unemployment is a common form of unemployment in rural India” is generally true. Disguised unemployment refers to a situation where people appear to be employed but are actually not making a meaningful contribution to the economy. This type of unemployment is common in rural areas of India where agriculture is the primary occupation.

In rural areas, the majority of the population is engaged in agriculture, and many people work on small family farms. Due to the limited size of the landholdings, there are often more people working on the farm than are actually needed to carry out the work. This results in a situation where many people are working, but their contribution to the agricultural output is minimal. This type of situation is commonly referred to as disguised unemployment.

Furthermore, the lack of alternative employment opportunities in rural areas means that people often continue to work on the farms, even though their contribution is limited. The government has implemented various schemes such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to provide employment opportunities to people in rural areas. However, these schemes have not been able to address the issue of disguised unemployment completely.

In conclusion, disguised unemployment is indeed a common form of unemployment in rural India due to the predominance of agriculture as the primary occupation, small landholdings, and limited alternative employment opportunities.