The Reserve Bank of India (RBI) has recently made public its data on daily wage payments across the country. This report offers an insight into the earning disparities among different groups of workers.
Agricultural Workers’ Wages
According to the RBI data, male agricultural workers in Madhya Pradesh and Gujarat earned a daily wage of Rs 217.8 and Rs 220.3 respectively in the year ended March 2022, both below the national average of Rs 323.2. On the other hand, Kerala paid the highest average wage of Rs 726.8 per worker. This high wage rate has attracted approximately 25 lakh migrant workers to the state. Furthermore, the report revealed average wages in Jammu & Kashmir, Himachal Pradesh, and Tamil Nadu as Rs 524.6, Rs 457.6, and Rs 445.6 per person, respectively.
Non-Agricultural Workers’ Wages
The RBI data also highlighted the wage differences among non-agricultural workers. Male workers in Madhya Pradesh received the lowest average wage of Rs 230.3. In contrast, those in Kerala earned the highest average wage of Rs 681.8 per person. Meanwhile, Gujarat and Madhya Pradesh again fell below the national average wage of Rs 373.3 for rural male construction workers.
Rural Construction Workers’ Wages
According to the RBI report, daily wages for rural construction workers reached Rs 837.7 in Kerala, significantly higher than the national average. Other states with relatively high wages for construction workers included Jammu & Kashmir, Tamil Nadu, and Himachal Pradesh.
Issues Associated with Rural Wages
The report indicates that rural employment heavily depends on agriculture, which is in turn affected by seasonal variations such as the monsoon, and rabi and kharif production. The consistent low agricultural prices contribute to reduced rural incomes. Additionally, most new jobs in rural areas require unskilled labor, further rendering these jobs unattractive due to low wages. Another key issue is the prevalent gender disparity, with female workers earning only 70% of what their male counterparts earn.
Government Initiatives
In an attempt to improve conditions, the government has launched several initiatives including Deen Dayal Upadhayay Grameen Kaushalya Yojana, Pradhan Mantri Kaushal Vikas Yojana, Mahatma Gandhi National Rural Employment Guarantee Act, National Rural Livelihood Mission, and Pradhan Mantri Awas Yojana.
Way Forward
To create decent jobs for its expanding young population, India needs to invest in human capital and stimulate small entrepreneurship. Incentives should be offered to rural food processing industries and efficiency in value chains should be prioritized. The potential for rural income security is considerably amplified through contract farming and direct farm-factory connections. Furthermore, digitalization in rural spaces and local e-governance could significantly contribute to self-sufficiency among India’s villages and citizens. Collaboration between public and private sectors can help build a rural knowledge platform, bringing state-of-the-art technology into rural areas and creating jobs. Artificial intelligence can also be harnessed to enable smart and precise agriculture.
