{"id":3898,"date":"2015-10-20T18:19:10","date_gmt":"2015-10-20T12:49:10","guid":{"rendered":"https:\/\/teekhapan.wordpress.com\/?p=3898"},"modified":"2015-10-20T18:19:10","modified_gmt":"2015-10-20T12:49:10","slug":"the-shift-from-agriculture-to-manufacturing-will-not-be-easy","status":"publish","type":"post","link":"https:\/\/vivekkaul.com\/2015\/10\/20\/the-shift-from-agriculture-to-manufacturing-will-not-be-easy\/","title":{"rendered":"The shift from agriculture to manufacturing will not be easy"},"content":{"rendered":"
<\/a> Hence, it\u2019s a no-brainer to suggest that people need to be moved out from agriculture into other higher paying areas like industry and services. As TN Ninan writes in his new book The Turn of the Tortoise\u2014The Challenge and the Promise of India\u2019s Future<\/em>: \u201cBoth productivity and incomes will go up substantially if more people can be moved from low-paying agriculture to higher-paying industry and services\u2014a key transition the country has barely begun.\u201d<\/p>\n The Make in India initiative of the Narendra Modi government should be seen in light of this. The programme envisages \u201can increase in the share of manufacturing in the country\u2019s Gross Domestic Product from 16% to 25% by 2022\u201d and \u201cto create 100 million additional jobs by 2022 in manufacturing sector\u201d.<\/p>\n One reason why this target at best remains a pipedream is because of the lack of education among Indians. The rate of literacy as per the 2011 Census stood at 74.04%. As this website points out:<\/a> \u201cCompared to the adult literacy rate here the youth literacy rate is about 9% higher. Though this seems like a very great accomplishment, it is still a matter of concern that still so many people in India cannot even read and write.\u201d<\/p>\n
\n<\/strong>One of the points that I have often made in The Daily Reckoning<\/em> is about close to 50% of Indians being engaged in agriculture generating around 18% of the Indian gross domestic product (GDP). What this clearly tells us is that agriculture is a low-income earning activity. \u00a0It also tells us is that there are many more Indians employed in agriculture than there should be. And this can be made out from the fact that only 17% of Indians employed in agriculture, survive on money they make from it. The rest, have to do some other work along with working on the farm, in order to add to their meager income.<\/p>\n