A new focus to India’s jobs debate

It is indeed a structural shift that has been in the making through the previous decade: from about three in five in 1999-2000, the proportion of people employed in agriculture dropped to less than one in two by 2011-12. The trend has, however, witnessed a clear acceleration in the latter half of the decade. What has been the loss of the agriculture sector has been the gain of manufacturing (again, a broad correspondence to the secondary sector) and services (tertiary) sector. In terms of share of GDP, manufacturing accounts for little over 25% and services just under 60%.


Just as agriculture was absorbing a workforce disproportionate to its contribution to GDP, we see almost a similar trend, but diametrically opposite, playing out for services. While accounting for a little under two-thirds of GDP, it accounts for just a little over one-quarter of the total employment in the economy. One possibility could be that this segment is very productive. Read More