In the past few decades, more and more working Indians have moved from agriculture to non-agricultural sectors. The majority of Indians, 57%, now work in non-agricultural jobs. Within all non-agricultural jobs, services--such as transport (9%), education (7%), knowledge-intensive services (6%), hotels (3%), health (2%) and other services (12%)--together account for 39% of jobs. Next, comes manufacturing and construction contributing 21% each. Trade creates another 19% of the non-agricultural jobs.
There are significant state-wise variations in the share of non-agricultural jobs in India. Most of the southern and western states employ more people in manufacturing and other non-farm work, while states such as Chhattisgarh, Madhya Pradesh and Himachal Pradesh have more people working in agriculture.
Going forward, the shift of workers from agriculture to other sectors will continue. States must take action to propel job creation as well as skill development of this workforce that is moving away from farms into other sectors.
The author acknowledges the contribution of Divij Sinha, IIHS Urban Informatics Lab, who helped with data visualisation.
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