India’s Agricultural Workforce Sees Unprecedented Growth

India’s agricultural workforce has undergone transformation between 2017-18 and 2023-24. Recent data reveals an increase of 68 million workers in agriculture, reversing a previous decline of 66 million. This shift raises concerns about economic stability and agricultural productivity.

Context of Workforce Changes

Historically, as economies develop, the agricultural sector’s share of both output and employment typically declines. This trend has been evident globally since the industrial revolution. In India, the decline in agriculture’s contribution to GDP has been steady, yet the workforce share has decreased at a slower pace. However, the recent surge in agricultural employment is alarming, particularly as it coincides with a period of economic growth.

Regional and Gender Dynamics

The increase in agricultural workers primarily stems from economically disadvantaged states like Uttar Pradesh, Bihar, and Madhya Pradesh. Notably, the majority of this growth has involved female workers. The number of women in agriculture rose by 66.6 million, impacting the rural workforce. The share of rural women in agriculture jumped from 12.8% to 26.8% during this period, while the male share remained stable.

Impact of COVID-19

The COVID-19 pandemic played important role in this workforce shift. Many individuals returned to family farms in search of employment during the pandemic. This trend was expected to reverse post-lockdown, yet the agricultural workforce increased by 25 million in 2023-24, despite an 8.2% GDP growth. This contradiction marks ongoing economic challenges.

Wage Disparities

Despite the increase in female agricultural workers, wage disparities persist. In 2023-24, female casual labourers in agriculture earned ₹282 per day, while their male counterparts earned ₹376. This wage gap reflects broader issues of inequality in rural employment.

Stagnant Wages and Cost of Living

Rural workers, both agricultural and non-agricultural, face stagnant wages that fail to keep up with rising living costs. Data indicates that rural male agricultural wages have lagged behind inflation for over a year. The situation is similar for non-agricultural roles, suggesting a troubling trend for rural economic health.

Concerns Over Productivity

The rise in agricultural employment raises concerns about productivity. In 2023-24, productivity in agriculture was lower than in manufacturing and services. This trend suggests that many workers are trapped in low-productivity roles without viable alternatives in other sectors.

Structural Issues in the Labour Market

The reversal of workforce trends indicates a structural problem in India’s labour market. Many individuals may wish to transition from agriculture to more productive sectors but lack opportunities. This situation contributes to a cycle of poverty and low productivity that hampers economic growth.

Future Implications

The increase in agricultural employment, especially among women, marks critical socio-economic challenges. Addressing issues of productivity, wage disparities, and employment opportunities is essential for sustainable economic development in India.

Questions for UPSC:

1. Examine the impact of the COVID-19 pandemic on rural employment trends in India.
2. Discuss the factors contributing to wage disparities between male and female agricultural workers in India.
3. Analyse the relationship between agricultural productivity and economic growth in developing countries.
4. Critically discuss the structural challenges faced by the Indian labour market in transitioning workers from agriculture to other sectors.

Answer Hints:

1. Examine the impact of the COVID-19 pandemic on rural employment trends in India.

1. The pandemic forced many workers to return to family farms due to job losses in urban areas.
2. Rural employment in agriculture increased , particularly among women, rising by 66.6 million.
3. Despite economic recovery and GDP growth, agricultural employment continued to rise, indicating persistent economic challenges.
4. COVID-19 disrupted traditional employment patterns, leading to a reversal of trends in agricultural employment.
5. The increase in agricultural workforce during a time of economic growth raises concerns about the quality of jobs available.

2. Discuss the factors contributing to wage disparities between male and female agricultural workers in India.

1. Female agricultural workers earned ₹282 per day, while males earned ₹376, denoting wage gap.
2. Women often occupy lower-paying, less secure positions compared to their male counterparts in agriculture.
3. Societal norms and gender roles contribute to women’s undervaluation in the labor market.
4. Limited access to resources and education for women affects their bargaining power and wage potential.
5. Discrimination in employment practices perpetuates wage disparities between genders in rural areas.

3. Analyse the relationship between agricultural productivity and economic growth in developing countries.

1. In developing countries, agricultural productivity is often lower than in manufacturing and services, which hampers overall economic growth.
2. High agricultural employment with low productivity can trap workers in poverty and limit economic advancement.
3. Productivity improvements in agriculture are crucial for freeing up labor for more productive sectors.
4. Investment in agricultural technology and training can enhance productivity, supporting economic growth.
5. Economic growth typically leads to a decline in agricultural employment share as workers transition to higher-paying sectors.

4. Critically discuss the structural challenges faced by the Indian labour market in transitioning workers from agriculture to other sectors.

1. Many workers are ‘trapped’ in agriculture due to a lack of viable employment opportunities in manufacturing and services.
2. Stagnant wages in agriculture discourage workers from leaving the sector, despite better opportunities elsewhere.
3. Educational and skill gaps prevent workers from transitioning to more productive sectors effectively.
4. Economic policies may not adequately address the needs of rural workers, limiting their mobility.
5. The persistence of low productivity in agriculture indicates systemic issues within the labor market that require comprehensive reform.