Question

Assertion (A): In recent times, the growth in the public sector employment has been very sluggish in India.
Reason (R): There has been reassessment of the role of State in economic development.

  1. Both A and R are true and R is the correct explanation of A
  2. Both A and R are true but R is not the correct explanation of A
  3. A is true but R is false
  4. A is false but R is true

Answer:

Option A: Both A and R are true and R is the correct explanation of A

Detailed Solution:

The correct answer is “Both A and R are true and R is the correct explanation of A”.

The trend has been towards privatization and downsizing of the public sector, leading to a slower growth rate in public sector employment. There has been a shift in economic policy towards liberalization and privatization, which implies a reduced role for the state in direct economic activities.