Farm workers need to move to manufacturing, service: Panagariya

India 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.

Arvind Panagariya Vice Chairman, NITI Aayog

So 49% relying on income that is only 14%. If you are going to bring immediate relief to the poor then doing good things to agriculture is important.

He pointed out that about 49% of workforce in agriculture (as per 2011-12 NSSO survey) produces only 14% of the GDP.

"So 49% relying on income that is only 14%. 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 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 adopting 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.