SOIL Report 2008 - ACCESS Development Services

Chapter IIIIt would be useful here to take a quick look at the sector-wise strategies for increasing employment potentialin the 11th Plan and expected to be carried through in the 12th Plan period, as outlined below.The performance of the policy prescriptions of the 10th Plan was found deficient. Agriculturalemployment increased only at about 1 per cent per annum till 2004-’05, and was also associated witha sharp increase in unemployment among agricultural labour households which represent the poorestgroups, whose unemployment increased from 9.5 per cent in 1993-’94 to 15.3 per cent in 2004-’05.The 11th Plan assumes that the projected doubling of the rate of agricultural growth during the Planperiod will be possible without any increase in agricultural employment. Whereas agriculture contributed8.8 million job opportunities in the 11-year period from 1993-94 to 2004-05, it is projected to contributeno increase in the 11th Plan and a net decrease of four million agricultural workers over the 12th Planperiod (2006-’07 to 2016-’17). Rising wage differentials between the agriculture and non-agriculture sectorsare also very likely to shift labour out of agriculture, and the continued growth into the 12th Plan periodwould provide the sufficient pull factor from non-agriculture to encourage such a shift.An alternative projection of agricultural employment has also been made, which shows positive growthof employment in agriculture at 0.6 per cent per year and productivity growth is correspondingly lowerat 3.4 per cent per annum. The 11th Plan document states that the main employment issue in theagriculture sector is the increase in farm labour income, and not the creation of a larger number ofemployed workers; it would be appropriate to work towards a strategy in which there is higher growthin non-service sector employment opportunities in rural areas which can provide additional income forthe rural workforce by providing additional non-agricultural employment.When irrigated area increases it generates additional employment year after year. Water resources projects,particularly irrigation development and flood control works, generate significant employment opportunitiesduring construction period as well as in the post-project phase. The overall employment potential likelyto be generated in the 11th Five-Year Plan in the irrigation sector is as per Table 3.1.Table 3.1: Employment Potential in Irrigation areaDirect Employment(Million Person Years)Indirect EmploymentMMI 2.1 10.1MI 5 1.05Flood Control 2.5 –Total 9.6 11.1562Higheragriculturalproductivityis criticalto ensuringthat othersectors ofthe economyattain thegrowthlevelsprojected.The key issue in agricultural employment is not just the number of person-days, but that specific attentionis needed to increase productivity so that higher production of food grains is possible, and food securitycan be assured. Higher agricultural productivity is critical to ensuring that other sectors of the economyattain the growth levels projected.3. The 11th Plan approach to the MSME sector marks a shift from thewelfare approach to that of empowermentThe Plan approach considers the Micro Small and Medium Enterprises (MSME) sector as an importantsegment of industry, which is unorganised and hence needs support and access to all schemes of industrywith special enabling provisions. The strategy is two-pronged, focusing on livelihood and social security.62