India needs to shift from agri to services: NITI Aayog

India needs to shift from agri to services: NITI Aayog

ndia needs to shift about half of its workforce from agriculture to manufacturing and services sectors for economic transformation, NITI Aayog Vice Chairman Arvind Panagariya said. “In longer run, you do need that (farm) workers come out of agriculture into manufacturing and services jobs. If you don’t want to leave this population in that (poor) state,” Panagariya said while addressing a seminar here. He said that there has to be a strategy for economic transformation. He pointed out that about 49 percent of workforce in agriculture (as per 2011-12 NSSO survey) produces only 14 percent of the GDP. “So 49 percent relying on income that is only 14 percent. If you are going to bring immediate relief to the poor then doing good things to agriculture is important,” he said. He was of the view that more dependence on the farm sector also creates problem for government as its capacity is challenged when natural calamities like hailstorm destroy crops. Further, he said that NITI Aayog will be an official consultant firm for the states and link them to external experts and help them adopt good practices. However, he added that Aayog’s interface with the states is changing as the institution is no longer in the business of allocating funds and approving their annual plans. 

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