The sectoral distribution of workforce in India has witnessed significant changes over the decades, reflecting a substantial shift from farm work to non-farm work.

In 1972-73, about 74 per cent of the workforce was engaged in the primary sector, which has declined to about 46 per cent in 2022-23. This decline aligns with developmental strategies aimed at reducing the proportion of people depending on agriculture. However, a significant portion still relies on agriculture and allied activities as the major source of livelihood.

The secondary and service sectors have shown promising growth. The share of the secondary sector has increased from 11 to 25 per cent, while the service sector share has risen from 15 to 29 per cent. During the post-reform period, employment opportunities have particularly grown in the service sector, though these jobs are mostly in the informal sector and are casual in nature.

There exists a gender dimension in sectoral distribution. About 64 per cent of the female workforce is employed in the primary sector, whereas only 38 per cent of males work in that sector. Men have relatively better opportunities in secondary and service sectors.

Despite these shifts, the informal sector continues to dominate employment. In 2011-12, only about 6 per cent of workers were employed in the formal sector, while 94 per cent remained in the informal sector.