In India, the agriculture sector provides employment to the maximum number of people. But this has to be read with caution. It has contributed to disguise unemployment. As a result, the per capita productivity is very low. We need to divert this surplus labour to other sectors. Before doing this, we have to encourage mechanisation and co operative farming. The MGNREGS has played some role in diverting this surplus labor.
This labour should be provided with skill and other vocational training and can be distributed to other sectors like manufacturing or service sector.
Since majority of them are uneducated and with very less skill set, we have to provide them proper training. Innovative methods like ppp model, using SHG, NGO can be used in providing assistance. MSME's should be encouraged and credit and marketing facilities shold be provided. We can invest this surplus labour in export sector. This has the advantage of gaining foreign reserves. Cooperative marketing should be encouraged. The MSME's should be decentralised so that this does not result in overcrowding of cities. Dr APJ Abdul Kalam's PURA(Providing Urban Amenities in Rural Areas) is note worthy. We have a wide choices to chose for the MSME ranging from Agarbathi making, making eco friendly plates, arts and crafts, bio fertilizers, value addition to the agri products, toy industry etc.