Non-farm Sector Enterprises and Employment
145
employed in construction in rural areas than
in urban areas. Manufacturing, construction
and trade sectors constituted the bulk of
employment-based livelihoods according
to the survey.
In the Economic Census, themain source
of income reported by the respondents is a
useful proxy for livelihoods that the people
can pursue. 30.1 per cent of those surveyed,
reported cultivation as the source of income
and 51.2 per cent were engaged in manual
wage labour (Figure 7.2). Part or full time
domestic services were rendered by 2.5
per cent of people for earning their liveli-
hoods. The shift in nature of livelihoods
even in rural areas is amply demonstrated
by the majority of households that depend
on non-agricultural activities for their main
source of income. For about 70 per cent of
the households, non-farm sector economy is
more critical than the farm sector. This shift
has occurred for a number of reasons. Firstly,
the increasing labour force and the pressure
on agricultural land has rendered many
livelihoods unviable. Secondly, economic
growth since the 1990s fuelled construc-
tion, transport, microenterprises and several
new economic sectors in finance, informa-
tion, communication and technology. The
growing aspirations of rural people created
an urge to migrate rather than to work in
the fields, as was revealed in the Situation
Assessment Survey of farmers in 2005.
1
However, the growth in new livelihoods
came not so much frommanufacturing but
from non-manufacturing and the services
sectors. Shift from agriculture requires new
skills and competencies. Unskilled jobs can
be found in construction-related works but
not much in other sectors. Non-farm sector
has become the major sector that sustains
livelihoods, whether in rural or in urban
areas. This is in keeping with the pattern
of economic growth and aspirations of the
people. A critical point to note is that the
livelihoods provided by the services sector
is not proportional to its share of national
income. Despite 63 per cent share in GDP
(in 2011–12), services sector offered only
38 per cent jobs. Agriculture provided 48
per cent jobs but had amuch smaller share in
GDP. This is indicative of the fact that those
in agriculture are likely to be poorer whereas
those in the non-farm sector livelihoods are
likely to be comparatively better off.
Cultivation,
54,029,332
Manual Casual Labour,
91,800,624
Domestic
Service,
4,481,542
Foraging
Rag Picking,
408,763
Non-agricultural
Own Account
Enterprise,
2,887,263
Begging/
Charity,
668,479
Others,
25,098,309
Household
Income Rural,
0
Figure 7.2:
Rural households by main source of income
Source:
Socio Economic Caste Census, 2011, Ministry of Rural Development, GoI.
1
More than 40% of the farmers surveyed expressed
a desire to quit farming.
