Employment in Rural India grew at a much faster clip than in urban areas between 1998 and 2005. Interestingly, it accounted for more than half the country’s workforce of 100.9 million in 2005. These employment numbers, however, exclude the workforce in crop production and plantation.

A close study of the Economic Census 2005 released by the Central Statistical Organisation (CSO) today reveals that 52.07 million workers or 51.6 per cent of the total workforce in 2005 belonged to Rural India. In 1998, it was only 47.9 per cent.

Not surprisingly, the huge growth in rural workforce is corroborated by almost a doubling in the number of agricultural establishments to 6.07 million in 2005 from about 3.47 million in 1998. Though the number of non-agricultural establishments grew just 33 per cent to 35.74 million during the period, they were higher at 19.83 million in rural areas compared with 15.92 million in the urban areas.

But what is quite striking is that the rapid growth in the number of establishments is largely led by small and medium or entrepreneurial activities. While there were 41.82 million establishments in 2005, just 6 lakh units, or a meager 1.5 per cent, employed over 10 workers.

The most optimistic interpretation of the data provided by the Economic Census is that the economic environment has been so conducive that entrepreneurial talent has flourished in the country, more so in Rural India. But, the data can also so be read to say that traditional economic activities such as farming are no longer able to support the livelihood of people.

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