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Answer in about 30 words · Q4

Q.‘The agricultural sector has the largest share of Indian workers.’ – Explain.

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While agriculture employs the largest share of Indian workers, this reflects a structural reality of low productivity and disguised unemployment rather than a sign of a thriving sector.

India’s workforce story is one of a deep, persistent attachment to the land. For decades, agriculture has been the single largest employer, absorbing more workers than any other sector — industry, services, or manufacturing. This is not because farming is exceptionally profitable or modern; quite the opposite. The dominance of agriculture in employment is a legacy of slow structural transformation, where a growing population has few alternatives for livelihood.

The key reason is that India’s industrial and service sectors have not grown fast enough to absorb the massive labour force leaving rural areas. Unlike the pattern seen in many developed economies — where agriculture’s share of employment shrinks rapidly as people move to factories and offices — India’s shift has been sluggish. So, millions of workers remain in agriculture, often on tiny plots of land, with low productivity and little mechanisation. This is what economists call disguised unemployment: many people are working on the same piece of land, but their marginal contribution is near zero. They are not ‘unemployed’ in the official sense, but they are underemployed.

Note

The share of agriculture in India’s GDP has fallen sharply — to around 15–18% — yet it still employs nearly 45–50% of the workforce. This gap between output share and employment share is a clear sign of low productivity per worker. …

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