12-December-2024-Special-Article

RISING AGRICULTURAL EMPLOYMENT IN INDIA: CAUSES AND CONCERNS

From 2017-18 to 2023-24, the number of Indians working in agriculture saw a sharp rise of 68 million, marking a reversal of the previous trend of workforce reduction in the sector.

This surge, largely driven by women and concentrated in economically weaker states, raises important questions about India’s labor market and its structural challenges.

Factors Behind the Rise in Agricultural Employment

Economic Trend Reversal

• Between 2004-05 and 2017-18, India experienced a reduction of 66 million agricultural workers.
• However, this trend shifted between 2017-18 and 2023-24, with the sector gaining 68 million workers.

Impact of the COVID-19 Pandemic

• Urban workers, particularly in informal jobs, returned to family farms during the pandemic lockdowns.
• Despite economic recovery, many workers continued in agriculture, highlighting a persistent shift.

Limited Non-Agricultural Jobs

• Agriculture often acts as a fallback option due to insufficient job opportunities in other sectors.

Women’s Role in the Workforce

• The rise in agricultural employment was predominantly driven by women, with their numbers increasing by 66.6 million during this period.
• This indicates a significant change in the gender composition of the agricultural workforce.

Economic Conditions in Weaker States

• States like Uttar Pradesh, Bihar, and Madhya Pradesh, with limited industrial growth, saw higher agricultural labor demand.

Concerns About the Agricultural Employment Surge

Hindrance to Economic Transition

• Normally, economic growth leads to a shift from agriculture to industries and services due to higher wages and productivity.
• The rise in agricultural employment reflects workers’ inability to transition to higher-paying sectors.
• In 2023-24, agricultural productivity was far lower compared to services (4.3 times lower) and manufacturing (3 times lower).

Economic Inefficiency

• The growth in agricultural jobs during GDP expansion highlights the failure of industries and services to absorb surplus labor.
• This indicates structural flaws in job creation policies.

Underemployment in Agriculture

• Many agricultural roles are seasonal and low-paying, leaving workers underemployed and earning less than they would in other sectors.
• Over-reliance on agriculture keeps rural poverty and inequality persistent.

Informality in Employment

• The increase in agricultural work often leads to informal jobs without legal protections, social security, or healthcare.
• Informal workers remain vulnerable to economic hardships.

Gender Inequality

• Women in agriculture frequently face unequal pay and lack access to better jobs.
• This widens the rural gender pay gap, reduces household income stability, and limits women’s participation in urban employment.

Stagnant Rural Wages

• Rural wages have not kept pace with inflation, further reducing the purchasing power of agricultural workers.

Challenges in Generating Non-Agricultural Jobs

Stagnant Manufacturing Growth

• Unlike other developing nations that transitioned from agriculture to manufacturing, India has remained reliant on its service sector.
• Manufacturing output and employment remain stagnant at about 20%.
• The Production Linked Incentive (PLI) scheme focuses more on production than on creating jobs.

Service Sector Challenges

• India’s service sector has two extremes: high-tech services like AI create significant output, while low-skilled services generate more jobs.
• Domestic demand for high-tech services is limited due to slow industrial growth.

Skill Gaps and Education Quality

• India produces millions of STEM graduates annually, yet many lack the skills for employment due to inadequate education quality.
• With 8-10 million new workers entering the market yearly, job creation is falling short of demand.

Expansion of the Informal Economy

Post-pandemic, many workers shifted to informal jobs, reflecting economic distress and a lack of formal employment options.

Government Initiatives for Employment Generation

• Prime Minister’s Employment Generation Programme (PMEGP)
• Pradhan Mantri Mudra Yojana (PMMY)
• Atmanirbhar Bharat Rojgar Yojana (ABRY)
• e-Shram Portal
• National Career Service (NCS)
• MGNREGA
• Pradhan Mantri Garib Kalyan Rojgar Abhiyaan (PMGKRA)

Way Forward

Boost Non-Agricultural Jobs

• Invest in manufacturing and services to create high-productivity jobs.
• Strengthen initiatives like Make in India and Skill India to enhance employability.

Promote Gender Equality

• Introduce policies for pay parity and provide women-centric entrepreneurial opportunities.
• Invest in the care economy to boost female workforce participation, potentially creating millions of jobs.

Increase Agricultural Productivity

• Encourage mechanization and advanced farming practices.
• Expand agro-processing through initiatives like Mega Food Parks.

Develop Rural Infrastructure

• Build robust infrastructure to support industrial and service growth in rural areas.

Green Economy and Social Security

• Focus on green technologies for job creation and provide universal social security to rural workers.

By addressing these structural issues, India can ensure sustainable employment growth while improving economic equity and productivity.

Mains Question:

1. Discuss the reasons behind the recent increase in agricultural employment in India, highlighting its implications for economic growth, structural transformation, and gender dynamics. (150 WORDS)