India’s workforce flock back to farming

In Bidire village in Karnataka’s Hassan district, Sudha faced an unexpected turning point when her husband lost his job in Channarayapatna. As her family struggled to make ends meet, Sudha decided to use the opportunity–and her land–to change their future. “Our family was struggling,” she said, “so one day, we decided to make use of our vacant land.” And with that, a small dairy farm began, along with a few rows of banana plants, marking the start of a journey toward stability.

The first year saw the family steadily gain revenue from dairy sales, enough to expand into poultry farming with a focus on country chickens and egg sales. Today, Sudha has cleared her debts and lives a content, self-sufficient life. Her story serves as a vivid example of resilience, illustrating how job loss can sometimes pave the way to a thriving, independent life in rural India.

Return to the roots

Between 2020 and 2021, India saw a 28.9% migration rate, with rural areas contributing to 26.5% of this movement. Remarkably, a growing segment of these individuals–10.8%--moved in search of employment, only to return to agriculture. 

The recent Periodic Labour Force Survey (PLFS) released by the Ministry of Statistics and Programme Implementation highlights this shift. From July 2023 to June 2024, approximately 46.1% of India’s workforce was involved in agriculture–a rise from 42.5% in 2018-19. 

Sudha’s story reflects the emerging landscape of rural employment. While challenges persist, such examples of resilience offer hope, showing how individual initiative and adaptability can lead to empowerment and self-sufficiency.

Economic pressures

For countless landless and daily wage labourers, returning to their villages during the pandemic became a test of resilience. Pappu, from Naugawa, shared his story of walking nearly 800 kilometres from Surat to his home in Banda district-a journey that took him 26 days. Upon arrival, he endured another 15 days in quarantine, isolated but finally safe. Another villager, Bhaiyaram Lakshman, trekked from Hyderabad, sometimes receiving lifts, yet his journey still stretched over 15 exhausting days. He reached home with swollen, blistered feet. For both men, life remained harsh; their families, already grappling with hunger, now had additional mouths to feed. Despite relentless job searches, no work was available nearby. Survival hinged on support from voluntary groups and organisations, which stepped in with food and essentials, bridging the gap as employment opportunities remained scarce.

Agriculture is one sector that can absorb as many as it can. People tried to return to the cities, but jobs were scarce. This trend has contributed to a 3-4% increase in agricultural employment over the past five years.

The economic fallout of COVID-19 left 9.3% of urban workers jobless, according to the latest Periodic Labour Force Survey (PLFS). Once seen as hubs of prosperity, cities have become increasingly unaffordable, especially in tier-1 and tier-2 locales, as the cost of essentials like food, housing, and transport continues to climb. Industrial workers, who earn an average of Rs 563 per day (around Rs 14,075 per month) according to the Annual Survey of Industries (ASI), often find themselves stretched thin.

For many, the weight of urban financial strain prompted a re-evaluation, drawing them back to rural life where agriculture offers a more sustainable, if hard-won, livelihood. "During COVID-19, many people who depended on unorganised work in the cities went back to their native places,” said Dr SR Keshava, economist and HOD at Bangalore University. “Agriculture is one sector that can absorb as many as it can. People tried to return to the cities, but jobs were scarce. This trend has contributed to a 3-4% increase in agricultural employment over the past five years."

The pandemic spurred a migration reversal, redirecting thousands back to their roots, where farming–though challenging–has offered a measure of stability and self-reliance that urban industries could not.

Methodology

Between July 2023 and June 2024, an extensive survey was conducted across 12,800 first-stage units (FSUs) throughout India, comprising 7,016 villages and 5,784 urban frame survey (UFS) blocks. Of these, 12,743 FSUs (6,975 villages and 5,768 urban blocks) were successfully surveyed for canvassing the Periodic Labour Force Survey (PLFS).

In total, 1,01,920 households were surveyed, with 55,796 households from rural areas and 46,124 from urban areas. The survey covered 4,18,159 individuals, of which 2,42,546 were from rural areas and 1,75,613 from urban areas.

The sample also included 3,19,773 individuals aged 15 years and above, with 1,80,793 from rural areas and 1,38,980 from urban areas. This data provides a comprehensive snapshot of the surveyed population's labour force characteristics across India’s rural and urban regions.

The PLFS survey methodology was robust, covering a large and diverse sample size. Surveyors collected data from rural and urban households, painting a detailed picture of how labour dynamics have evolved over time. The survey allows policymakers to assess the effects of urban migration, job loss, and the shift back to agriculture with greater accuracy, guiding future decisions.

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Ripple effects

The increase in India’s farming population brings both opportunities and challenges. On the positive side, more farmers could boost agricultural production, enhance food security, and open up growth in sectors like agro-processing. A strengthened rural economy could lead to job creation and increased exports, bringing long-term benefits to the country. “In case if more job opportunities are created in other sectors especially in manufacturing, agriculture will also be productive and the d-sector will also get the workforce,” Keshava said.

However, this shift also raises concerns about the strain on natural resources such as land and water. Overcrowding in the agricultural sector could reduce the productivity of individual farmers unless steps are taken to support sustainable farming practices. The government will need to invest in farmer education and infrastructure to ensure that this trend benefits both the rural and national economies in the long run.

“In all developed countries, there is a clear pattern of how sectors evolved. They moved from an agricultural economy to an industrial economy and then to a service economy. However, in India, a large part of the population moved directly from an agricultural economy to a service economy, bypassing the industrial stage. This is not the right approach.

If India wants to become a developed country by 2027, the share of agriculture in the economy should reduce to around 15%. Currently, the surplus labour is in agriculture, which is why productivity in the sector is low. Dr BR Ambedkar noted this in 1917, and every economist suggests the same solution: shifting surplus labour to other sectors. Unfortunately, due to the unprecedented pandemic and government facilities and subsidies, more people have returned to agriculture. However, this percentage may decrease in the next two years,” he added.

In the wake of economic pressures, agriculture has offered a safety net for many. While this transition has the potential to reshape rural economies and bolster food security, it must be managed carefully to avoid overburdening resources. By embracing sustainable practices and ensuring proper infrastructure, India can navigate this shift in its workforce, balancing growth with long-term sustainability.

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