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What is the main reason for unemployment in India?
  • a)
    Lack of effective demand
  • b)
    Lack of skilled labor
  • c)
    Lack of capital
  • d)
    Lack of education
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
What is the main reason for unemployment in India?a)Lack of effective ...
The main reason for unemployment in India mentioned in the given text is the lack of capital. Due to a shortage of capital, industries in India are not able to expand at a fast enough rate to absorb the entire labor force. This leads to widespread unemployment and underemployment. It is important to note that the nature of unemployment in underdeveloped countries like India is different from that in developed countries. In developed economies, unemployment is often cyclical and occurs due to a lack of effective demand. However, in underdeveloped countries, structural unemployment arises due to a lack of capital and limited opportunities for employment.
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