Economics · Economic Development Models
India's agricultural growth has historically lagged behind the services sector, with rural underemployment and low productivity persisting. According to the Lewis structural change model, which shift is necessary to drive sustained economic development?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Transfer of surplus labor from agriculture to the modern industrial sector✓
- 2Expansion of primary sector employment
- 3Strict import substitution within the agricultural sector
- 4Increase in agricultural mechanization without labor reallocation
Correct answer
Transfer of surplus labor from agriculture to the modern industrial sector
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