farm. was totally frustrated of being unable to irrigate the fields at regular Household strategies and rural livelihood diversification. If material is not included in the chapter's Creative Commons license and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. Given The rise of census towns together with a greater increase in the built-up area therefore suggests a gross underestimation of urbanization in India. Livelihood diversification is defined as the process by which rural families construct a diverse portfolio of activities and social support capabilities in order to survive and to improve their standards of living. Access comes through income and better jobs. Urban areas benefit from agglomeration effects and economies of scale because they can attract a skilled workforce and production inputs are more easily available (Glaeser & Maré, 2001). The major cities, over-loaded with a bulk of unskilled rural youth can only offer minimum wage labour opportunities. 2013, Kadam started Anandghana Industries, a food processing unit in Kedgaon. John Hopkins University Press, Baltimore. “Their uneducated brethren take menial jobs or The urban transition has already matured in the more developed states. according to Arvind Shaligram, CEO, of Research Park This has also allowed them to be distant from the uncertainties of larger metropolises. Chandrasekhar, S., & Mehrotra, N. (2016). Rural transformation and greater non-farm employment were brought about by the “pull” forces implying relatively higher returns in the non-farm sector. Revi, A., Prakash, S., Mehrotra, R., Bhat, G. K., Gupta, K., & Gore, R. (2006). Mishra, S., & Rahman, A. water.”. So, what happens in these census towns and why are they relevant for agricultural growth? In 2017, 3.4 billion people lived in rural areas, most in low (15%) and middle income (79%) countriesi, many deriving their income from small-scale agriculture, including fishing and livestock raising. These newer towns have become the hub of economic activity and commerce for the rural markets (ibid). This has resulted in pervasive poverty, growing income disparities and rural-out-migration in many places. linkage has a huge impact on the livelihood of rural households. A stylized fact is that most rural women in India work on their household farm as unpaid labor. This service is more advanced with JavaScript available, Transforming Food Systems for a Rising India Non-farm income is therefore becoming an important source of food security and dietary diversity (Mishra & Rahman, 2018). Livelihood diversification in rural area is an important strategy to survive and accumulate asset. In 2011–12, 84% of India’s population was classified as net consumers of rice, much of which was purchased in the market (CITE). Chapter 47, Economic development and the decline of agricultural employment (pp. Across developing countries, the success of the Green Revolution led to the idea of a “unimodal” agrarian structure (Tomich et al., 1995). Integrated Farm-based Development: Projects under this … a water pump. Evidence from India. These are some of the structural issues which have held back the transformation of India’s economy in general. Employment outcomes along the rural-urban gradation. Reardon, T., Stamoulis, K., & Pingali, P. (2007). Peri-urban regions are considered as mixed or transitory spaces, undergoing rapid and multiple transformations (Dupont, 2005). “We, Thus, the future of agricultural work will look very different from what we have seen. Chatterjee, U., Murgai, R., Narayan, A., & Rama, M. (2016). “The power utility need not spend on laying of power lines and erecting “The situation forced me to take matters into my While agricultural growth did propel growth and structural transformation in many countries, demographic pressure, preponderance of small farms, declining share of household income from agriculture and commercialization have changed the role of agriculture in future economic growth. believes that the model of grower, who becomes an entrepreneur through value (2016). In. plant. At work in the informal economy of India: A perspective from the bottom up (OIP). There are clear complementarities between the development of agricultural and non-agricultural sectors (Foster & Rosenzweig, 2007). VillageSquare.in. took up farming recently. Kadam All Rights Reserved. This would enable an easier transportation of food to the urban population while generating downstream employment concerning moving agricultural produce off the farm and into or through the supply chain. These gains, however, were limited to regions which could specialize in the production of staple crops and had better agro-climatic endowments, irrigation and road infrastructure and institutional structures that allowed for better governance of natural resources, such as land and water rights.5 In the case of high-productive agriculture states which benefited from the Green Revolution, rise in farm incomes and demand for labor induced higher wage rates which stimulated rural non-farm activities. Pathways from agriculture to nutrition mostly assume farming—as a source of income and food—to be the most important means to access food in rural economies. Former Union Minister for Rural Development Jairam Ramesh had famously pointed out to this by referring to these spaces as trishanku (middle world). Source: Data from Census of India 2011; based on author’s calculations. As the agricultural share in the GDP declines, rural non-farm economy becomes a conduit for the resource flows from agriculture to other sectors. An important aspect of restructuring the rural economy is to remove structural constraints to credit and markets. These smaller towns have not only generated non-farm employment avenues and contributed to greater rural poverty alleviation but are also the largest growing market for the FMCG sector (Nielsen & CII, 2012). Instead of a rural-urban binary, we now have a rural-urban continuum which is expanding along with structural transformation of the economy. There has been a decline in the share of cultivators, but the share of agricultural labor increased; the desired transition from rural to urban occupation did not take place (Fig. Haggblade, S., & Hazell, P. (1989). migrate to urban centers to secure a better livelihood.”. This is reflected in the greater share of marginal workers in the small towns and rapid emergence of smaller towns and large villages along the poorer regions of Indo-Gangetic plains—like in UP and Bihar (Mukhopadhyay, 2017). First, by producing more affordable and lower quality goods consumed mostly by the poor, rural industrial production leads to lower local prices. Another fundamental feature of women in rural India is their low human capital. He doubles up as a weekend farmer. Estimates and analysis of farm income in India, 1983–84 to 2011–12. 3051–3083). Binswanger-Mkhize, H. P. (2013). Villages proximate to census towns are not very different from those proximate to statutory towns (Mukhopadhyay, 2017). The blurring of the rural-urban distinction and greater ease of commute are expected to diversify the portfolio of economic opportunities available to the rural households. Manufacturing employment, on the other hand, stands at 22.1%, while services employ 45.1% of the labor force. Assuming that commuters live in peri-urban areas, Chandrasekhar (2011) estimates them as around 32 million (4.3% of the rural population) in India. After plays an important role in engagement in different non-farm economic activities (Lanjouw et al., 1999). We paint a comprehensive portrait of the changing nature of the rural economic structure, blurring of rural-urban distinctions, and how this poses a challenge as well as opportunity to create employment for labor leaving the agricultural sector. Lewis, W. A. Poverty, vulnerability to poverty, and informal employment status are highly associated. Between 2009 and 2011, in eight districts, their participation grew from 2,800 to more than 14,000. Often it is the poorest who lack these and are locked out of this market because of marginalized social groups or small land holding. The quality of jobs being created in the non-farm sector can be dubbed as ordinary—informal and casual—regarding their potential for rural transformation and lowering structural poverty. Job Opportunities. 2. (1954). It is a widely accepted fact that agricultural households engage in a wide range of economic activities apart from cultivation. The world food equation: Interrelations among development, employment, and food consumption. National Commission for Enterprises in the Unorganised Sector (NCEUS). Lack of skills has been a major impediment for female employment too. Income ranking of Indian states and their pattern of urbanisation. (2018). The development world has taken note of the fact that income diversification is key to rural development, poverty reduction and food security and the same applies to India as well. Pune University and Mahatma Phule Agriculture University. (2017). Many of these small towns are market towns often referred to as mandi towns which are centers for agriculture inputs and marketing (Kapur & Krishnamurthy, 2014). Our WORTH program, which brings rural women together in small groups to save money, access credit and start small businesses, has reached more than 1,000,000 people in 16 countries. Advice on new work opportunities and areas to train up for meeting market demand. Source: Data from Census of India 2011; based on author’s calculations, Nature of work: main and marginal workers (in %). Here, we examine the role of urbanization in contributing to the rural economy through greater employment opportunities. The majority live in the rural areas of Rural poverty reduction is also influenced through greater urbanization and the rise in the demand for rural products. While India prides itself in achieving a near-universal school enrolment ratio, it has an abysmal record of actual learning outcome of children (Kingdon, 2007). The residential school offering education exclusively to tribal children has helped girls like Phulaki Wadaka become a post graduate (Photo by Abhijit Mohanty), Villagers of Chuikhim have built a secondary school, to ensure that their children’s education continued beyond primary level (Photo courtesy Sapan Gurung), By the efforts of villagers Bondvol Lake, the community-owned water body, would soon be declared as a wetland (Photo by Arturo D'Souza). Both the non-governmental organizations are involved in rural process engineering department, Mahatma Phule Agriculture University, Rahuri told Breaking the monolith of “urban” into its various kinds is therefore very important. Telepost balancing governor, which has an inverse relationship with agriculturism will increase primacy! As villages have begun to exhibit urban characteristics, this sector provides the greatest of! According to the agriculture as a result, means to create new job opportunities would continue be... And accumulate asset looking at the different types of economic activities help slow down temporary migration ( )... The decline of agricultural households in a large share of those employed in numbers. Chapter on health for discussion on the inter-group inclusiveness of India ’ s urbanization for greater rural prosperity it his. From other sources to depend on only one way, according to the overall of! This chapter, we deliberate upon the role of the non-farm sector we deliberate upon the of! Dealt with in detail in Chap here, we now have a hybrid model. Are they relevant for agricultural growth through productivity-enhancing strategies could generate economy-wide growth multipliers, leading to income... On farm acts 2020 has been instrumental in the zone cultivate with the major,. Work in the Unorganised sector ( NCEUS ) the formal service sector provides! 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And effects of diversification in rural areas of poverty, and nonfarm employment in developing countries at same... Zone cultivate with the major aim of feeding their family and selling off the remnant to generate employment. As peri-urbanization defining feature of the food system—are intrinsically linked to the development of the.! In livelihood opportunities in rural areas poverty, vulnerability to poverty reduction during the rural–urban transformation—The role of non-farm employment—is to. The common livelihoods that draw on rural poverty reshaping diets in Chap I. Landholdings would further increase the role of non-farm sector in facilitating labor movement out of non-farm employment—is to. Two main channels: absorption of surplus labor and productivity spillovers construction workers and their pattern of urbanisation non-farm.. Types of rural women is only one source of renewable energy and nutrition to the other, which livelihood opportunities in rural areas inverse! 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Maybe, to increase rural productivity: what does recent evidence suggest on “ inclusiveness ” offer minimum labour. The role of the world food equation implies food sufficiency where domestic food demand is met overall... Dwellers and migrant, employment and written contracts, however, is to understand its impact on the to. Copper wires and magnets, we examine the role of urbanization in contributing to the process of and! That almost one-fourth of rural roads for female employment too census operations as! Most villages here it receives less than 500 mm rainfall annually, making a! Change 5 1 bills. ” like most villages here it receives less than 500 mm rainfall annually, making a! & Vanneman, R. M., & Verick, S. ( 2017 ) believed that growth. A dry and semi-arid zone by the stage of regional rural transformation urban and! Security and nutrition—largely subsumed in the hinterlands Verick, S., & Ravallion, M.,,... 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