For distinguishing livelihoods that are
in artisanal crafts, manufacturing and
services, the term non-farm sector is
traditionally used. There are also occu-
pations that are based on farming but
carried out off-farm such as in agro and
food processing. To capture non-farm
livelihoods comprehensively is a major
challenge. Non-farm livelihoods are a
significant means of sustenance, both in
rural and urban areas. These livelihoods
are also in the nature of wage employment
or self-employment including running of
enterprises. The livelihoods are based on
large organised sector entities, unorgan-
ised sector entities as well as own- account
enterprises. Khadi and village industries,
individual craftsmen, weavers and workers
of different kinds make up the spectrum
of off-farm livelihoods. Medium, small
and micro enterprises, Khadi and village
enterprises, household businesses, own-
account unorganised units, self-employed
entrepreneurial units and non-agricultural
labour of all kinds form the core of off-farm
livelihoods. This chapter focuses on handi-
crafts, handlooms and wage employment
in the non-agricultural sectors in general.
There has been an ongoing structural
shift in the economy–away from agriculture
and towards services. Manufacturing sector
share of GDP has been growing margin-
ally, whereas services sector has shown
vigorous growth (Table 7.1). Agricultural
sector that used to contribute to national
income significantly in the past has been
having lower shares in GDP year after year.
It is not on account of lack of growth in
agriculture but due to aggressive growth
in services sector. Nearly two-thirds of the
GDP is contributed by services sector.
Non-farm Sector Enterprises
and Employment
Chapter
7
Table 7.1:
Trends in share of services sector in GDP
2000–01
2011–12
@
2012–13
*
2013–14
**
Trade, hotels, and restaurants
14.5 (5.2)
17.4 (1.2)
17.2 (4.5)
24.0 (3.0)
#
Trade
13.2 (5.0)
15.9 (1.0)
15.8 (4.8)
–
Hotels and restaurants
1.3 (7.0)
1.5 (3.8)
1.4 (0.5)
–
Transport, storage, and communication
7.6 (9.2)
7.3 (9.4)
7.5 (6.0)
–
Railways
1.1 (4.1)
0.7 (7.5)
0.8 (0.3)
–
Transport by other means
5.0 (7.7)
5.4 (8.6)
5.6 (6.6)
–
Storage
0.1 (6.1)
0.1 (2.9)
0.1 (8.6)
–
Communication
1.5 (25.0)
1.1 (11.2)
1.1 (6.5)
–
Financing, insurance, real estate, and business
services
14.1 (3.5)
16.5 (11.3)
17.2 (10.9)
18.5 (12.9)
Banking and insurance
5.4 (–2.4)
5.7 (12.9)
5.9 (11.8)
–
Real estate, ownership of dwellings, and
business services
8.7 (7.5)
10.7 (9.9)
11.4 (10.0)
–
Community, social, and personal services
14.7 (4.6)
13.8 (4.9)
14.3 (5.3)
14.5 (5.6)
Public administration and defence
6.5 (1.9)
5.9 (4.2)
6.0 (3.4)
–
Other services
8.2 (7.0)
7.8 (5.4)
8.2 (6.8)
–
Construction
6.0 (6.1)
8.2(10.8)
8.1 (1.1)
7.8 (1.6)
Total services
51.0 (5.1)
54.9 (6.6)
56.3 (7.0)
57.0 (6.8)
Total services (including construction)
57.0 (52) 63.1 (7.1)
64.4 (6.2) 64.8 (6.2)
Total GDP
100.0 (4.1)
100.0 (6.7)
100.0 (4.5)
100.0 (4.7)
Source:
Central Statistics Office (CSO).
Notes:
Shares are in current prices and growth in constant prices; Figures in parentheses indicate
growth rate;
*
first revised estimates, @ second revised estimates,
**
provisional estimate;
#
includes the combined share and growth of trade, hotels, and restaurants and transport, storage,
and communication for 2013–14.
