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LATEST NEWS UPDATES | India's non-agrarian rural economy struggles for sustenance -Richard Mahapatra

India's non-agrarian rural economy struggles for sustenance -Richard Mahapatra

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published Published on Jun 25, 2019   modified Modified on Jun 25, 2019
-Down to Earth

Farmers and farm labourers, who want to quit agriculture, are stuck in the non-remunerative work since other sectors are not generating jobs at the required rate

We are fairly sure by now that the upcoming Budget would be the first government instrument towards the prime minister’s ambitious plan of making India a $5 trillion economy by 2024. Currently, India is nearly a $2.8 trillion economy. It is obvious we don’t need just economic growth to achieve this target but must also ensure a fair distribution of the bounty among all.

There are indications that Modi’s second term focuses on not just overall growth but also aims to give a fillip to the sluggish agriculture sector, besides investing heavily in infrastructure, and reviving the manufacturing and service sectors. There is no doubt the agriculture sector, which employs 50 per cent of the population, faces a severe crisis.

Similarly, with the exception of investments in the infrastructure sector (mostly led by public spending), the others are not doing so well. To attain the 2024 landmark, all these sectors have to be given the investment steroid and in high doses.

In this overdrive for economic growth, where does the agriculture sector fit in? This is not to emphasise the importance of the sector to rural Indians, but to raise a political and economic question in a new structural context.

Rural India is no more agrarian, in economic and employment terms. In a research paper for the Niti Aayog, economist Ramesh Chand (also a member of the government think tank) has analysed the transformation in the rural economy. His verdict: since 2004-05, it has become a non-farm economy.

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Down to Earth, 23 June, 2019, https://www.downtoearth.org.in/blog/agriculture/india-s-non-agrarian-rural-economy-struggles-for-sustenance-65225?fbclid=IwAR2f8b-YB8Few6pBvauclaTEHhCOINVwgV0TeoTQizElUrf


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