In India, rural incomes are generally lower than the urban incomes. Which of the following reasons account for this? 1. A large number of farmers are illiterate and know little about scientific agriculture. 2. Prices of primary products are lower than those of manufactured products. 3. Investment in agriculture has been low when compared to investment in industry. Select the correct answer by using the codes given below: Codes:

1. The question seeks reasons for the general disparity where rural incomes are lower than urban incomes in India. 2. Statement 1: Illiteracy and lack of knowledge about scientific agriculture among a large number of farmers can lead to lower productivity and consequently lower incomes. (Plausible reason) 3. Statement 2: The terms of trade often favour manufactured products over primary products (agricultural goods). This means farmers receive relatively lower prices for their output compared to the prices of goods and services they consume, contributing to lower rural incomes. (Plausible reason) 4. Statement 3: Historically, investment in agriculture (like irrigation, research, infrastructure) has often lagged behind investment in industry in terms of scale and impact, limiting productivity growth and income potential in the rural sector. (Plausible reason) 5. All three factors – lower agricultural productivity due to lack of knowledge/technology, adverse terms of trade for agricultural products, and lower relative investment in agriculture – contribute significantly to the rural-urban income disparity. 6. Therefore, reasons I, II, and III all account for the income gap.