In Tamil Nadu, there is a significant shift away from the agriculture sector, with an increasing number of workers engaging in non-farm sectors such as construction and manufacturing, according to a report by the State Planning Commission (SPC).
The report on ‘Rural Non-Farm Employment in Tamil Nadu’ (RNFE) undertaken in 12 villages of six districts with higher and lower RNFE reveals that over 75 per cent of male workers and 50 per cent of female workers are now employed in non-agricultural activities, marking a 20 per cent decline in agricultural dependence since 2012. This highlights a structural shift in rural livelihoods, the report said.
The report reveals that younger workers (aged 15–34) are leading this transition, preferring non-farm jobs due to better wages and more stable employment opportunities. Construction has emerged the dominant sector for male workers, particularly among the youth, while manufacturing remains the primary employer for women across all age groups, the release said.
The average annual earnings of a worker in agriculture is far lower than that of a worker in non-agriculture, in 2024, in rural Tamil Nadu.
The movement of workers away from the primary sector has happened at a much larger scale in Tamil Nadu compared to India. The percentage of workers in the Primary Sector in Tamil Nadu was at 49 per cent in 2001, reaching the less than 50 per cent mark for the first time. This trend has continued rapidly, and in 2011, the primary sector supported just about 43 per cent of workers in Tamil Nadu, while the corresponding percentage was 53 in India. Tamil Nadu is one of the most industrialised states in the country; nearly one-fourth of its workers engaged in the secondary sector in 2011. The percentage of workers in the secondary sector is far lower in India, at 17 in the year 2011. Thus, Tamil Nadu has a relatively higher level of diversification away from the primary sector compared to India, and the structural transformation of the workforce is happening at a steady pace, says the report on RNFE.
Employment stability remains a concern. While 60 per cent of non-farm workers have jobs for 9–12 months a year, the remaining 40 per cent face irregular work, with employment lasting fewer than nine months. Additionally, nearly 40 per cent of non-agricultural workers report working fewer than eight hours per day, raising questions about the quality of these jobs, the report said.
Deputy Chief Minister of TN and Ex-officio Vice-Chairman, SPC, Udhayanidhi Stalin and SPC Executive Vice-Chairman J Jeyaranjan, submitted reports on four topics to the Chief Minister on Monday.
Other studies
Tamil Nadu’s Vision for Sustainable Development Goals; Tamil Nadu’s Automotive Future; and Reimagining Tamil Nadu – Path to Knowledge Economy are the other studies. The SPC is mandated, among many tasks, to evaluate the flagship programmes of the government, conduct studies and prepare policy drafts for the government.
Tamil Nadu’s Automotive Future focuses on advancing multiple powertrain technologies including electric, hybrid, hydrogen, CNG and diesel while strengthening localisation, green fuel adoption and policy support. With the State already leading in electric two-wheeler production, it highlights the need to skill over two lakh workers in EV systems, battery technology and automation by 2030, the SPC said.
Key recommendations include establishing EV clusters, enhancing logistics infrastructure with roll-on roll-off terminals and multimodal hubs, and expanding research and development through centres of excellence and skill parks. The roadmap supports Tamil Nadu’s vision to become a $1-trillion economy by 2030 and positions the State as a national hub for clean mobility and innovation, the SPC said.
Knowledge economy
The report on knowledge economy focuses on two key pillars — global capability centres and the future of manufacturing. It highlights the importance of strengthening the MSME ecosystem as a key driver of economic resilience, while underscoring the need for inclusive growth with attention to social equity as a guiding principle for economic transformation.
The Sustainable Development Goals 2030 Tamil Nadu’s Vision for SDGs highlights current status of the State and interventions by the State government through various welfare schemes, innovations and policy measures. It also outlines the strategies and action plans for each goal and target, a release said.
Chief Minister Stalin in a social media post said, “Tamil Nadu outpaces Europe in SDG progress. With our SDG performance surpassing Europe’s overall average and bold strides in rural jobs, EVs, and the knowledge economy, Tamil Nadu’s $1 Trillion Economy vision is well within reach.”