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

1. Worker productivity (Rs. 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?

The correct option is 3 and 4 only.

Let us analyze each statement step-by-step with reference to the Indian economy after the 1991 economic reforms:

Statement 1 is incorrect:
Following the 1991 economic liberalization, worker productivity (measured in Rs. per worker at constant 2004-05 prices) actually increased in both urban and rural areas. While the rate of growth and absolute productivity levels remained higher in urban areas due to rapid services and industrial growth, rural productivity did not decrease; it registered a positive growth rate as well.

Statement 2 is incorrect:
The percentage share of rural areas in the total workforce did not steadily increase. Instead, with economic development, structural transformation, and urbanization, there has been a gradual shift of the workforce from rural agricultural sectors to urban industrial and service sectors. Consequently, the percentage share of the rural workforce in the total workforce has shown a declining trend over the decades.

Statement 3 is correct:
In rural areas, there has been a clear diversification of the economy. The growth in the rural non-farm economy (which includes rural manufacturing, construction, transport, trade, and services) increased significantly post-1991, reducing the absolute dependence on traditional agriculture.

Statement 4 is correct:
Post-1991, the Indian economy witnessed a period often characterized by "jobless growth" in several sectors, particularly in agriculture. Due to automation, mechanization, and structural shifts, the growth rate of rural employment experienced a decline compared to the pre-reform era.

Therefore, since statements 3 and 4 are correct while statements 1 and 2 are incorrect, the correct option is "3 and 4 only".