Changing structure of rural economy of India: implications for employment and growth

Traditionally, agriculture is the prime sector of rural economy and rural employment. The transition in composition of output and occupation from agriculture to more productive non-farm sectors is considered as an important source of economic growth and transformation in rural and total economy. However, no serious attempt has been made to analyse and understand the transition in India‟s rural economy. Economic studies on rural India have focused mainly on changes in rural employment, by gender and at broad sectoral aggregation between agriculture and non agriculture. The present study examines long term changes in sectoral composition of rural output and employment; their relationships and implications for output growth and employment and income inequalities across sectors and between rural and urban sectors. The findings of the study are used to suggest strategy for future development of India‟s rural economy.

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