Bharat Inc.

The results of the Fifth Economic Census, by far the most reliable count of enterprises and economic activity in the country, have only underscored the trend thrown up by the latest growth data released recently.

The results of the Fifth Economic Census, by far the most reliable count of enterprises and economic activity in the country, have only underscored the trend thrown up by the latest growth data released recently. Once again, rural Bharat has shown that it is the driver of urban India’s growth story. GDP figures showed that a jump in agricultural output was largely responsible for the over 9 per cent growth clocked in the January-March quarter. The census has found that over 61 per cent of all economic enterprises, other than those related to plantations and crop production, are in rural areas.

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It still employs the largest chunk of the workforce — 73 per cent of the total workforce, if you count agriculture. Even if you take that sector out, more than half the jobs in the country are in rural India. And this trend is unlikely to change in a hurry since the average growth in rural employment is nearly double the growth in urban employment.

This is a staggering achievement, more so because it has been such a silent one. While the undoubted achievements of India’s information technology sector and its resurgent manufacturing sector have grabbed attention, rural India has grabbed the half-chances that have come its way and converted them into opportunities. The numbers also underscore the enormous benefits of reform, as well as the still largely untapped potential of rural India. Undoubtedly, better roads, telecommunications and market access have had a major role to play in this upsurge. But most of rural India continues to suffer from critical and crippling shortages of proper infrastructure, power, water and access to markets. On paper, except for the remoter reaches of the country, most of these vital ingredients for growth already exist. However, it is the quality that counts.

Where such issues have been better addressed, the results are already evident. States which have addressed the issue have reaped the benefits, which is why Tamil Nadu has emerged as India’s most industrialised state. Traditional leader Maharashtra has slipped to second spot in terms of the number of industrial units, though it still has its nose ahead on the jobs front. Traditional powerhouse Gujarat is not even among the top five.

There is an important takeaway for our politicians and policy-makers here: ignore rural India — Bharat, if you will — at your peril.