Assocham: Rural non-agro economy growing faster than urban

New Delhi, Sep 19 (Calcutta Tube) The rural non-farming sector has been growing faster than that of the urban since early 1970s, says a report.

The report on ‘Comparative growth between non-farming economy of rural and urban area’ by the Associated Chambers of Commerce and Industry of India (Assocham) said the share of rural non-farming economy in rural gross domestic product (GDP) has increased from 28 percent in 1970-71 to 46 percent in 1999-2000.

It said the share of rural employment in total employment has registered a growth from 15 percent in 1972-73 to 34 percent in 2004-05.

Releasing the report, Assocham president Swati Piramal said: ‘The growth is both in terms of employment and output comparing to urban areas, primarily due to the numerous initiatives of the central and state governments.’

‘There has been changes in GDP and employment. Share of manufacturing in total rural GDP has increased from 5.9 percent in 1970-71 to over eight per cent in 1999-2000 and in male employment from six percent in 1972-73 to eight percent in 2004-05,’ she added.

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