In the context of the Indian economy, disguised unemployment is mainly related to which sector of employment?

Introduction / Context:
Disguised unemployment is a very important concept in Indian economy and development studies. It is often used to explain why many people in villages appear to be employed on farms, yet the overall productivity remains low. This question checks whether the learner can correctly link disguised unemployment with the sector where it is most commonly observed in India, and understand why this type of hidden unemployment persists in that sector.

Given Data / Assumptions:
• The question is about the Indian economy. • The focus is on disguised unemployment, also called hidden unemployment. • We are asked to identify the main sector to which it is related. • Options cover different sectors such as agriculture, industry and services.

Concept / Approach:
Disguised unemployment exists when more workers are employed than actually required to produce a given level of output. If some workers are withdrawn from that work, total output does not fall. Their marginal productivity is almost zero. In India this situation is very common in traditional rural agriculture where families work on small landholdings and share the work, even though fewer workers could produce the same crop. Therefore, the key approach is to recall in which sector the marginal productivity of extra workers is almost zero and where surplus labour is typically discussed in textbooks on Indian economy.

Step-by-Step Solution:
Step 1: Recall the definition of disguised unemployment as a situation where too many workers are engaged in a task without increasing output. Step 2: Think about the Indian context, especially rural areas where family farms often employ many family members on the same plot of land. Step 3: Note that even if some of these workers shifted to non farm work, agricultural output would largely remain the same, which means marginal productivity of some workers is almost zero. Step 4: Compare this with organised manufacturing, public administration or modern service sectors where each worker usually has a clearer role and marginal productivity is more visible. Step 5: Conclude that disguised unemployment is mainly associated with the agricultural sector in rural India.

Verification / Alternative check:
A simple way to verify is to remember that most standard Indian Economy textbooks specifically mention disguised unemployment in the chapter on agriculture and rural development. They usually give examples of a large joint family cultivating a small piece of land. If two or three members shift to other jobs, farm output does not fall. This classic example confirms that agriculture in rural areas is the sector where disguised unemployment is most prominent.

Why Other Options Are Wrong:
Large scale organised manufacturing sector usually employs a planned number of workers based on machines and production schedules, so surplus labour is less common.
Information technology and business process outsourcing services generally hire workers with specific skills and measurable outputs, so hidden unemployment is not a standard feature.
Public administration and defence services may sometimes appear overstaffed, but the textbook concept of disguised unemployment in India is firmly linked to rural agriculture, not these sectors.

Common Pitfalls:
Learners sometimes confuse disguised unemployment with open unemployment and give answers related to rural or urban areas in general, instead of identifying the specific sector. Another mistake is to think of modern sectors like information technology simply because they hear news about layoffs or bench periods. The exam point of view, especially in Indian economy multiple choice questions, consistently associates disguised unemployment with the agricultural sector, not with modern industry or services.

Final Answer:
The sector with which disguised unemployment is mainly associated in India is the Agricultural sector in rural areas.