Read the statement given below about informalisation and choose the correct alternative Statement 1 ...........

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Read the statement given below about informalisation and choose the correct alternative

Statement 1- It happened after economic reforms of 1999

Statement 2- Formal sector tends to shift to capital intensive technology to be more efficient.

Only 2 is correct

Only 1 is correct

Both are correct

None of the above

Explanation:

- Statement 1: It claims informalisation happened after economic reforms of 1999. However, economic reforms in India were initiated mainly in 1991. Therefore, this statement is incorrect because it refers to the wrong time period.

- Statement 2: Suggests the formal sector shifts to capital intensive technology to increase efficiency. This is generally true, as industries seek higher productivity and competitiveness, leading towards more automated and technology-driven operations.

Option 1: Only 2 is correct

- This option correctly identifies that Statement 2 is true while Statement 1 is not.

Option 2: Only 1 is correct

- This would be incorrect as Statement 1 is not accurate.

Option 3: Both are correct

- This is incorrect because Statement 1 is not true.

Option 4: None of the above

- Incorrect, because Statement 2 is indeed correct.

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