Farm sector employment sees peaks in FY23; becomes 17-year highest in 22 quarters, outperforming the industry trend.

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Around two in five Indians are working either in agriculture or the eatables sector, including hunting, forestry and fishing. The number of people employed in these sectors rose to 253 million in FY23, according to RBI KLEMS data.

Agriculture was one of the most successful sectors in terms of employment, with a number of 253 million people in the field, making it a 17-year high, based on KLEMS capital, labor, energy, material, and service data, as per RBI.

In the fiscal year 2023, agriculture was on the billion revenue line, being the first time since the fiscal year 2007 when it exceeded 250 million people in employment, and 50 million were added in the last 4 years as a matter of fact. In order to lessen the unemployment situation, the agricultural sector added 4.8 million jobs in FY23, which was more than the manufacturing and trade jobs combined at 4.4 million.

Not everyone agrees,  though. The experts claim that demonetization, legalizing Goods and Services Tax (GST), and the outbreak of Covid were the factors that created stress in the informal sector, overturned the opposite trend in FY19. Without mentioning demonetization or the bad business cycle in the country, the government banned the use of Rs 500 and Rs 1,000 in November 2016 followed by the introduction of the GST in August 2017.

Agricultural employment decreased to 200 million people, however, it has begun to increase again from FY19.

Although the country is witnessing a workforce increase in the agricultural sector, this industry still manages to employ only 42-43 percent of the whole workforce, as opposed to nearly 50 percent a decade ago.

An augmentation in the participation of the labor force and non-farm jobs, particularly in construction, can be referred to as the factors to the current workforce expansion.

In my analytics despite the fact that there is increased farm labor which is a so-called reason agriculture was one of the most successful sectors in terms of employment, with a number of 253 million people in the field, making it a 17-year high, based on KLEMS capital, labor, energy, material, and service data, as per RBI.

In the fiscal year 2023, agriculture was on the billion revenue line, being the first time since the fiscal year 2007 when it exceeded 250 million people in employment, and 50 million were added in the last 4 years as a matter of fact. In order to lessen the unemployment situation, the agricultural sector added 4.8 million jobs in FY23, which was more than the manufacturing and trade jobs combined at 4.4 million.

The Economic Survey has set a target of creating 7.9 million non-farm jobs each year until 2030.

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