Which of the following reasons account for this?
1. A large number of farmers are illiterate and know little about scientific agriculture
2. Prices of primary products are lower than that of manufactured products
3. Investment in agriculture has been low when compared to investment in industry
Select the correct answer by using the codes given below:
Explanation
Statement 1 is correct: Lack of education and knowledge about modern farming techniques can lead to lower productivity as farmers may not adopt modern farming techniques, use improved seeds, or utilize fertilizers and pesticides effectively. This results in low yields, which in turn lead to reduced in-comes for farmers, further contributing to the income disparity between rural and urban areas.
Statement 2 is correct: Primary products like agricultural commodities generally have lower prices than manufactured goods, which are produced in urban areas. This disparity in pricing contributes to the wage gap between rural and urban incomes.
Statement 3 is correct: The industrial sector in India has received more investment than agriculture, leading to better infrastructure, technological advancements, and higher wages in urban areas. This has resulted in significant income disparities, with urban incomes being about twice as high as those in rural areas. Urban regions benefit from better infrastructure and technology, driving higher productivity and wages. In contrast, rural areas face underinvestment, limiting their growth and widening the income gap.