In India, rural incomes are generally lower than the urban incomes. Which of the following reasons account for this ? I. A large number of farmers are illiterate and know little about scientific agriculture. II. Prices of primary products are lower than those of manufactured products. III. Investment in agriculture has been low when compared to investment in industry. Select the correct answer by using the codes given below : Codes :

All three statements are valid contributors to the rural–urban income gap in India. Low literacy and limited knowledge of scientific agriculture reduce farm productivity and employment quality in rural areas, keeping incomes low [1]. Agricultural production remains largely traditional with obsolete equipment, small fragmented holdings and poor access to costly inputs — indicators of underinvestment and low capital formation in agriculture that constrain output and wages [2]. In addition, real prices of primary agricultural commodities have tended to decline relative to manufactured goods, depressing the terms of trade and earnings of producers of primary products versus those engaged in industry and services [3]. Together these factors help explain why rural incomes generally lag urban incomes.

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > Need for inclusive growth in India > p. 254
2. [2] Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 13: Cultural Setting > POPULATION PROBLEMS > p. 113
3. [3] https://www.fao.org/4/ag088e/AG088E08.htm