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Its the PPT I have presented for registration in Ph.D. Programme.

Its the PPT I have presented for registration in Ph.D. Programme.

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  • 1. Rural- Urban Transformation and the Pattern of Rural Labour Absorption SUBMITTED BY Indu Pareek UNDER THE GUIDANCE OF Dr. Niti Mehta Professor Sardar Patel Institute of Economics and Social Research Thaltej Road, Ahmedabad. Academic Year : 2013-2014
  • 2. Conceptual Framework • During pre- reforms, India has experienced a reasonable high growth in both the sectors. However, there was a decline in farm sector in the post reform period . While during the same period the economy grew at 5.9 percent (0.3 percent increase). Table 1 GDP and agricultural GDP growth, India (1970-98) Year GDP Growth rate GDP Growth rate originating from agriculture 1970-80 3.4 1.8 1981-90 5.6 3 1991-98 5.9 2.6 Source: Abstracted from Rural Non- Farm Sector and ‘lessons from Asian Experience (Rao, 2005) • Fluctuations in GDP growth rate have had some consequences on the employment generation of rural farm as well as non-farm workers.
  • 3. Occupational Diversification: Contrary Viewpoints • The model of “Demand led Growth” suggests that a sustained rise in farm output and incomes can act as a prime mover, initiating the expansion of local non-farm activities, which in turn sets off a chain reaction of sufficient magnitude to sustain the shift of workers from agriculture to non-agricultural occupations. • Consumption and Production linkages are crucial pattern of growth. (Mehta, 2001) • There are contrary views about the forces which lead to rural workforces’ diversification. Often slow agricultural growth and overall incomes result in distress conditions that lead to lack of demand for non-agriculture goods. On the other hand extent of marginal to total land holdings have been found to be positively related to non-farm employment as revealed by some in-depth studies.
  • 4. • Growth in urbanization and the resulting growth in non-agricultural employment opportunities are considered as an index of development. This remarkable rise of 5.22 percent in the urban population in the last one decade is the highest in the country and much ahead of even the national average of 3.35 percent (DNA, 2011). • It is important to note that urban areas are designated based on four criteria. A village transformed into a town by satisfying 3 criteria’s 1. Size (Population of 5000 or more) 2. Density (at least 400 per sq. kms) 3. Nature of work (At least 75% of the male workers should be engaged in non-agricultural work) (Sivaramakrishna et.al, 2005).
  • 5. Table 2a Changes in workforce composition and workers participation rates, 1991 -2011. Rural Urban Total 1991 9.9 2001 10.6 70.2% 2.6 92.90% 65.0% 3.8 92.70% Total Workers (M) 12.5 14.4 % of Total workers 74.0% 70.6% Main Workers (M) % of Total Main Workers Marginal Workers (M) % of Total Marginal W 2011 11.9 2001 5.7 2011 8.5 1991 14.1 2001 16.3 2011 20.4 58.3% 29.8% 35.0% 3.7 0.2 0.3 83.9% 7.1% 7.3% 41.7% 0.7 16.1% 100% 2.8 100% 100% 4.1 100% 100% 4.4 100% 9.2 16.9 20.4 24.8 37.1% 100% 100% 100% 15.6 1991 4.2 4.4 6 62.9% 26.0% 29.4% Source: census of India (2011), Directorate of census operations, Guj Note: M: Millions
  • 6. 1991 Population 1 (M) Rural Urban Total Table 2b Workforce composition and workers participation rates, 1991 -2011. 2001 Male 13.8 7.4 21.2 Female 13.2 6.7 19.9 7.5 3.8 11.3 2.4 0.4 2.8 0.2 0.8 1 2.4 0.2 2.6 54.5 50.9 53.3 17.8 6.0 13.7 0.5 0.2 0.4 18.3 1.2 12.5 55.0 51.1 53.6 36.0 7.2 26.2 2 Rural Urban Total 3 Rural Urban Total 4 Rural Urban Total 5 Rural Urban Total 6 Rural Urban Total 27 14.2 41.2 Male Female Total 15.5 14.7 30.2 9.7 8.5 18.2 25.2 23.2 48.4 Main workers (M) 9.9 7.8 2.8 10.6 4.2 5.1 0.6 5.7 14.1 12.9 3.4 16.3 Marginal workers (M) 2.6 0.8 3 3.8 1 0.15 0.18 0.33 3.6 1 3.1 4.1 Worker's Participation Rate Main workers (% of Total Population) 36.6 50.4 18.9 35.1 29.5 52.6 7.0 31.3 34.2 51.3 14.5 33.7 Marginal workers (% of Total Population) 9.2 5.2 20.1 12.4 0.7 1.5 2.1 1.8 6.2 3.8 13.5 8.4 Total workers (% of total population) 45.8 55.6 39.0 47.6 30.2 54.1 9.1 33.1 40.4 55.0 28.0 42.1 Total Source: census of India (2011), Directorate of census operations, Gujarat. Note :M -million 2011 Male 17.8 13.7 31.5 Female 16.9 12.1 28.9 Total 34.7 25.7 60.4 9.1 7.4 16.6 2.7 1.1 3.8 11.9 8.5 20.4 1.0 0.4 1.4 2.7 0.3 3.0 3.7 0.7 4.4 51.4 54.2 52.6 16.2 8.8 13.1 34.2 33.0 33.7 5.8 2.9 4.6 15.8 2.6 10.3 10.6 2.8 7.3 57.1 57.2 57.2 32.0 11.4 23.4 44.9 35.7 41.0
  • 7. Category of workers engaged as/ in Cultivators Agricultural Labourers Activities Household Other industries Total Source: same as table 2 Table 3 Distribution of rural workforce by activity 1991 -2011. 1991 2001 Percentage of main workers 46.1% 30.7% 3.6% 1.4% 18.2% 100.0% Percentage of Total workers 38.3% 33.6% 1.6% 26.5% 100.0% 2011 Percentage of Total workers 38.5% 35.4% 1.0% 25.1% 100.0%
  • 8. Statement of the problem: Evidently relative prosperity and a tendency towards rural secondary and tertiary workforce concentration can and quite commonly go together. Almost all the states experienced at least one decade in which rural workforce concentration took place in the non-farm sector. During the late 1970’s and throughout the 1980’s there was a sea change in the empowerment prospects of rural – urban workers (Bhalla, 2005). In the wake of globalization, employment pattern in rural and urban areas have shifted. The thesis aims to study the rural transformation process and the pattern of rural labour absorption in Gujarat.
  • 9. Objective The thesis broadly aims to study the pattern of rural labour absorption in Gujarat and the processes associated with it in terms of workforce diversification especially given the changing rural-urban economic structure with deepening of the reforms. Specifically the objectives are: (1) To outline and study salient features (economic and demographic issues) associated with the ongoing rural transformation through detailed review of literature. (2) To trace the pattern of agricultural growth in Gujarat in the recent decade and examine the association of high growth of agriculture with changes in rural labour absorption if any. Juxtapose this with the growth of census towns with help of case studies. (3) To examine the demographic and workforces changes in decades of 2000s and pattern of emergence of census towns across Gujarat.
  • 10. 4) To examine spatial pattern (between districts, rural-urban) of rural labour absorption and whether workforce changes are distress driven or the result of growth processes and hence sustainable. 5) To examine the importance of infrastructural development in creation of the Rural Non-Farm Employment opportunities and workforce diversification and changes in rural economic structure in the census towns.
  • 11. Research Hypotheses 1) Economic Reforms seems to have stabilizing and growth accelerating impact on Gujarat’s Economy. The Secondary and tertiary sector shows statistically high rates of growth. 2) Infrastructure development has a positive impact on Rural NonFarm Employment. 3) The pull factor (growth induced) diversification is found to be more important than push factor (distress driven) and is characterized by changing nature of the rural economy. To support the stated fact, real non agriculture wages have always been higher than agriculture wages.
  • 12. Secondary Sources • Preliminary data for the study would be sourced from secondary and government agencies, mainly for demography (census) and employment (NSSO, Bureau of Economics and statistics) and income (CSO). Published reports, books, and journal articles would also be used as sources of data.
  • 13. The chapeterisation sequence would be as follows Chapter 1: Introduction (Definitions, Conceptual framework, methodology, need for case studies and plan of research study). Chapter 2: Literature Review to identify issues associated with ongoing rural transformation process (relevant published reports, articles and reports will be reviewed). Chapter 3: Pattern of growth in agricultural and rural sector in Gujarat. Chapter 4: Changes in employment and income structures the trend in Gujarat. Chapter 5: Details of demographic, economic and social profile of the selected census towns. Chapter 6: This chapter would present a brief summary of the preceding analysis and the main findings from the study. It would indicate the policy interventions required for growth of workforce diversification.
  • 14. References Bhalla, S (2005), “Rural Workforce Diversification and Performance of Unorganised Sector Enterprises” In Nayyar R and Sharma A (ed.), (PP.75-104) Census of India (2011), Gujarat-Workers and their Characteristics, Paper 3 of 2001, Gujarat, Directorate Census Operations. Daily News and Analysis http://www.dnaindia.com/analysis/report-urbanisation-has-touched-tribal-areasin-gujarat-manish-bhardwaj-1600124 accessed on 19th February, 2014. Jodhka, S. (2012), “Agrarian Changes in the Times of (Neo-Liberal) “Crises” Revisting Attached Labour in Haryana” Economic Political weekly VolXLVII no. 26 & 27. Kashyap, S.P (1995), “Industrial scene in Gujarat- A contract of Two Patterns”, Anvesak, Vol.25, No.1 Kundu, Amitabh (2011b), “Method in Madness: Urban Data from 2011 Census” Economic and Political Weekly, 46 (40). Mehta N. and S.P. Kashyap (2005), “Rural Non-farm Sector in Gujarat: Growth and Emerging Nature” In Nayyar R and Sharma A (ed.), (PP. 221-238). Mehta, Niti (2001), “Development Process and Occupational Diversification: A Case of Kheda”, Ph.D. Thesis, Gujarat University, Ahmedabad. Nayyar R and A Sharma (2005) (ed.),”Rural Transformation in India The Role of Non-farm Sector” Institute for Human Development, New Delhi : Manohar Publishers & Distributors. Papola T.S. and A. N. Sharma (2005), “Towards a Policy Agenda for Rural Non-farm Sector” In Nayyar R and Sharma A (ed.), (PP.509-516). Rao, C.H. (2005), “Growth in Rural Sector: some Lessons from Asian Experience” In Nayyar R and Sharma A (ed.), (PP.29-34). Shah AM (2012), “The village in the City, the City in the Village”, Economic and Political weekly, December 29. Sivaramakrishnan, K C, Amitabh Kundu and B N Singh (2005): Handbook of Urbanisation in India (Delhi: Oxford University Press). Vaidyanathan, A (1986), “Labour Use in Rural India: A Study of Spatial and Temporal Variation”, Economic Political weekly, Vol.21, No.52.
  • 15. Thank You!!!