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FAQs on NCERT Textbook - Structural Change - Old & New NCERTs for IAS Preparation (Must Read) - UPSC

1. What is structural change?
Ans. Structural change refers to the long-term shift in the composition of an economy, where there is a significant change in the relative importance of different sectors such as agriculture, industry, and services. It involves a transformation of the economic structure, leading to changes in production techniques, employment patterns, and the overall organization of an economy.
2. What are the factors that drive structural change in an economy?
Ans. Several factors can drive structural change in an economy. These include technological advancements, changes in consumer preferences, globalization and trade liberalization, government policies, and demographic shifts. Each of these factors can influence the relative competitiveness and productivity of different sectors, leading to changes in their importance within the overall economy.
3. How does structural change impact employment patterns?
Ans. Structural change can have significant implications for employment patterns. As economies undergo structural transformation, there is often a shift of labor from traditional sectors like agriculture to more modern sectors like industry and services. This can lead to changes in the distribution of employment across sectors and can also impact the quality of jobs available. In some cases, structural change may result in job displacements and require retraining or reskilling of workers.
4. What are the challenges associated with structural change?
Ans. Structural change can pose various challenges for an economy. One challenge is the need to ensure a smooth transition for workers and industries affected by the shift in the economic structure. This may involve providing support for retraining and reskilling, as well as implementing policies that promote inclusive growth. Another challenge is managing the potential disruptions that can arise during the transition, such as unemployment or income inequality. Additionally, structural change may require significant investments in infrastructure and technology to support the growth of new sectors.
5. Can structural change contribute to economic growth?
Ans. Yes, structural change can contribute to economic growth. As economies move towards more productive sectors and adopt advanced technologies, it can lead to increased efficiency and productivity, which are key drivers of economic growth. Furthermore, structural change often involves diversification, allowing economies to reduce their dependence on a single sector and become more resilient to external shocks. However, the extent to which structural change translates into sustained economic growth depends on various factors, including the quality of institutions, access to finance, and the ability to adapt to changing global conditions.
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