Sector-Wise Changes in Output and Employment in Rural India- A Case Study

Abstract

The results presented in the earlier sections show that contribution of agriculture in rural output gradually declined. This is considered a desirable change for the progress in economic development. However, over-dependence on agriculture for employment emerged as a major challenge. Between 2004-05 and 2011-12, India first time witnessed reduction in workforce in agriculture. The rate of decline was 2.04 per cent. Despite this, agriculture employed 64 per cent of the total rural workforce who produced only 39 per cent of the total rural output during the year 2011-12. It is estimated that for bringing convergence between the share of agriculture in total output and employment, 84 million agricultural workers were required to be shifted to non-farm sectors in rural areas in the year 2011-12. This amounted to almost 70 per cent increase in non-farm employment, which looks quite challenging.