India's farming sector accounted for over half of output in 1950-51, but only about 18% of GVA by FY 2025-26. Yet farming still employed 43% of workers in 2025. What best explains this output-jobs gap?

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Many farm workers lack the skills or mobility to move into factory and city jobs. Output share and jobs share don't have to move at the same speed. Farming's output share fell sharply as the economy diversified, but many farm workers lack the skills or mobility for factory and city jobs, so its jobs share fell far more slowly. This output-jobs gap is at the heart of India's development puzzle. Read more: IndEco0001 — Development and Structural Change Since Independence.

India’s farming sector accounted for over half of output in 1950-51, but only about 18% of GVA by FY 2025-26. Yet farming still employed 43% of workers in 2025. What best explains this output-jobs gap?

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