The Rural India is undergoing structural transformation and diversification towards other sectors of the economy. However, this structural transformation is not accompanied by employment creation. In fact, the rural India is witnessing negative Employment growth rate since 2004-05.
PRESENT STATUS OF RURAL ECONOMY
Share of Population: As per the 2011 Census, 68.8% of India's population and 72% of workforce resided in rural areas.
Structural Transformation: Rural areas account for 95% of agriculture output, 50% of manufacturing output and 25% of service sector output. The factors responsible for growth of Rural Non-Farm Economy (RNFE) is, lower productivity of farms, sluggish growth rate of agriculture, shrinking farm size, increasing cultivation cost, increased wage rates in non-farm sector etc.
Jobless Growth: Despite structural transformation, the overall employment has not even doubled. In fact, between 2005-12, the rural India witnessed negative employment growth rate of -2.8%.
Defeminisation of Rural workforce: Between 2004-05 to 2011-12, almost 33 million workers left agriculture. Out of which, 27 million were females (81%) and 6 million were males (19%). Thus, clearly shows that contrary to a common perception, a greater number of females have left workforce in the rural areas. Some of the reasons for the defeminisation include
- Increased enrolment in education
- Increase in household income which reduced the need for the females to work to support the household income
- lack of skill to get well paid non-farm job
- Manufacturing jobs away from the place of the habitation
LEVERAGING STRUCTURAL TRANSFORMATION THROUGH SECONDARY AGRICULTURE
The Dalwai panel has recommended boosting Secondary Agriculture to leverage structural transformation, create employment opportunities and boost rural economy.
BENEFITS
- Holistic development of rural areas by transforming rural areas from consumers to producers of Goods.
- Efficient utilisation of resources such as land and labour through various activities such as honeybee keeping, mushroom cultivation, backyard poultry etc.
- Contributes to agriculture by providing Inputs, enhancing productivity and reducing post-harvest losses.
- Develop human and capital resources to replicate Start-up India at village level.