Current Scenario of Rural Non-Farm Employment in Assam

By: Biswajit Choudhury

Published: September 2024

Introduction

Rural non-farm employment (RNFE) plays a crucial role in diversifying the rural economy, reducing poverty, and providing economic stability in Assam. Traditionally, Assam's economy has been heavily dependent on agriculture. However, with growing pressures on agricultural land, limited job opportunities, and the increasing need for rural economic development, non-farm sectors are emerging as critical alternatives for employment.

Rural Non-Farm Employment: An Overview

Rural non-farm employment refers to all income-generating activities in rural areas that are not directly related to agriculture. These include sectors like small-scale manufacturing, construction, retail, transportation, communication, and service industries. The shift towards RNFE is especially significant in a state like Assam, where agricultural land per capita is shrinking, and the agricultural sector is facing multiple challenges, including climate change and reduced productivity.

Current Data and Statistics

According to the National Sample Survey Office (NSSO) 2022, the share of non-farm employment in rural Assam has grown to approximately 35% of total rural employment. This is a significant increase from 25% in 2015. Moreover, the 2021-2022 Periodic Labour Force Survey (PLFS) highlights that non-farm jobs are increasingly absorbing the surplus labor from agriculture.

Sectoral distribution of rural non-farm employment in Assam:

• Construction: 20%
• Retail and Trade: 15%
• Manufacturing: 12%
• Transport and Communication: 8%
• Other Services: 15%

The Rural Non-Farm Employment Share in various districts also shows uneven distribution. While districts like Kamrup and Dibrugarh have a higher share of RNFE, remote districts like Kokrajhar and Udalguri still rely heavily on agriculture. The disparity is mainly due to differences in infrastructure and market access.

Key Drivers of Rural Non-Farm Employment Growth

Several factors have driven the expansion of RNFE in Assam:

• Urbanization: The proximity of rural areas to urban centers like Guwahati has facilitated growth in non-farm sectors like construction, transport, and trade.
• Infrastructure Development: Government projects like PMGSY (Pradhan Mantri Gram Sadak Yojana) and rural electrification schemes have improved connectivity and business viability in rural areas.
• Government Programs: Employment generation schemes such as MGNREGA have been crucial in providing temporary non-farm employment opportunities to rural workers.
• Micro and Small Enterprises (MSMEs): These have grown significantly in recent years, contributing to manufacturing, textile, and handicraft employment in rural areas.

Challenges Facing Rural Non-Farm Employment

Despite the growth, several challenges hinder the further expansion of RNFE in Assam:

• Lack of Skills: A major barrier is the inadequate skill development among rural youth. Most rural workers lack the technical skills required for higher-paying non-farm jobs.
• Access to Credit: Small entrepreneurs and self-employed individuals in rural areas face significant challenges in accessing credit for expanding their businesses.
• Market Access: Rural entrepreneurs often struggle to find markets for their products, limiting the scope for business growth and employment generation.
• Infrastructure Gaps: Poor infrastructure in many rural areas, including inadequate roads and communication networks, restricts the establishment of new non-farm enterprises.

Expert Opinion

Dr. R. Choudhury, a rural development expert from Tezpur University, observes, “The future of rural Assam's economy lies in a balanced approach between agriculture and non-farm sectors. While agriculture remains vital, non-farm employment is the key to absorbing the growing rural workforce and reducing migration to cities."

Another expert, Mr. A. Gogoi, an economist specializing in rural employment, adds, “Sustainable growth of RNFE will require better integration of rural producers with e-marketplaces, technological upskilling, and financial inclusion initiatives. Programs like Start-up India and Digital India should be more aggressively promoted in rural Assam."

Government Initiatives

Several government schemes have been introduced to promote rural non-farm employment in Assam. These include:

• Pradhan Mantri Employment Generation Programme (PMEGP): Provides financial assistance for setting up rural enterprises.
• National Rural Livelihood Mission (NRLM): Focuses on promoting self-employment and small-scale businesses in rural areas.
• Skill India: Targets rural youth by providing them with industry-relevant skills for non-farm jobs.

Conclusion

In conclusion, rural non-farm employment in Assam has shown promising growth over the past decade. However, for it to become a viable alternative to agriculture, there must be a concerted effort from both the government and the private sector. Addressing the skill gap, improving infrastructure, and enhancing market access are critical to boosting RNFE. By creating a sustainable rural non-farm economy, Assam can mitigate the challenges of rural poverty, unemployment, and migration.

For more information on rural non-farm employment opportunities in Assam, visit ruralasom.blogspot.com

Current Scenario of Manufacturing (Textiles, Handicrafts, etc.) 

 The rural non-farm sector has gained momentum in recent years, with manufacturing, particularly in textiles and handicrafts, playing a critical role. This growth not only boosts rural economies but also preserves traditional art and craft forms that have been handed down through generations. 

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