Non-Farm Employment and Implication on Agriculture Sector in Rural India

Abstract

Indian economy has been witnessing a transformation in its occupational structure since the past few decades. There is an increase in rural non-farm employment along with a decline in the agricultural employment. The present study analyzed the trends, patterns, and distribution of rural workforce in rural India using different rounds of Employment and Unemployment Survey data by NSSO. We explored various dimensions such as farm size, education, skill, gender and regions and its implication on agricultural sector. The study shows that the non-farm employment in rural India was gaining momentum due to the growth in economy resulting in economic diversification. Agriculturally forward states like Himachal Pradesh, Punjab, Madhya Pradesh, had shown a stupendous increase in non-farm employment from 1993 to 2015. Gender disaggregated employment of workforce reveals that the rate of increase in non-farm employment among male workers in rural India is much higher than their female counterparts. Casualization of labour was also highest in female workers. While landless and marginal rural workforce was shifting to non-farm employment, the medium and large farmers were still dependent on agriculture for occupation. It was also observed that educated and skilled workforce in agriculture and moving out to non-farm sector. The study reveals that these transformations are bringing newer challenges to agricultural sector.