NEW DELHI: Deputy Chairman of the Planning Commission Montek Singh Ahluwalia has emphasised the need for a four per cent growth in agriculture and increase in non-agricultural sources of income in the rural areas to overcome the agrarian crisis.

Inaugurating a three-day international conference on ``India: Meeting the Employment Challenge'' organised by the Institute for Human Development (IHD) in collaboration with the World Bank here, Dr. Ahluwalia advocated a shift of workforce from agriculture to non-agriculture to raise the per capita income of workers. Agriculture was a residual sector marked by widespread disguised unemployment and hence there was a need for diversification in agricultural and rural non-agricultural sectors, he said.

Dr. Ahluwalia said a mere expansion of employment would not make a dent on poverty, as the two were not necessarily correlated. Productivity and quality of employment must be raised. He argued for expansion in those sectors of the economy, which had higher labour productivity and high employment potential. ``It is very important to create non-agricultural employment in the small-scale sector, particularly manufacturing, especially by better and cheaper infrastructure,'' he said.

On reservation for the small-scale sector he wondered whether this would generate jobs. He said further research was needed on the employment impact of sectors which had been de-reserved.

Labour laws

He said most States favoured more flexibility in labour laws. While the Centre supported some flexibility it was against a `hire and fire' policy.

Alakh N. Sharma, Director of IHD, advocated socio-economic security for the unorganised sector workers.

He said measures of socio-economic security would not only promote inclusive growth but also facilitate reforms in the labour market.

While the 6th Pay Commission had been set up quickly, the Government was silent on extending minimum social security for unorganised sector workers.

Michael Carter, Country Director, said employment issues would become more important as India moved towards a middle-income country.

A good understanding of labour market issues and constraints, he said, was central to the achievement of inclusive growth.

Prof. Y.K. Alagh, chairperson of IHD emphasised the employment potential of non-crop rural sectors such as animal husbandry and forestry.

He said creation of non-farm agro-based employment opportunities would require newer commercial systems, strategic relationships with trading and marketing companies and skill-based programmes.

He advocated larger content of skills, which integrate information technology, and newer technological options, and employment opportunities.

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