What were the changes that took place in the village
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The changing village in India
Among the many ways that village economies have changed over the years, particularly in the last three decades, the most important is the sharp decline in the importance of agriculture.
While this is obvious in terms of share of output in the village economy, equally remarkable has been the shift of labour away from agriculture. The emergence of non-farm as the driver of rural economy, however, has varied across villages in terms of quality and the pace of change. While most of the non-farm employment is casual or self-employment with low earnings and poor quality of work, they do contribute to more income for households, enabling them to move out of poverty.
This has also been accompanied with greater integration with the outside world. The integration is not just limited to product markets but also labour markets, mainly through migration but increasingly also through commuting. With improved connectivity, both physical as well as through mobile phones, the integration of the village labour market with the outside has brought new dimensions of labour engagement and faster transmission of wage trends between the village and its periphery.
However, the rise in economic transformation has not seen an equivalent transformation in human development outcomes. The impact of these economic changes varies for women, with little movement of women in the workforce in the northern states to the increasing trend of feminization of agriculture in many states. On the other hand, despite substantial economic growth, education and health services show slower improvement with deteriorating public services in many cases. However, increasing demand for health services and education have also meant increasing reliance on private providers of health and education, sometimes of questionable quality.
While the caste structure and the associated hierarchies across castes do not show any sign of visible change, there is evidence that the disadvantaged castes may be benefiting from the changing production relations. This is particularly true for the Dalits, who have moved in to non-farm in a big way. On the other hand, the traditional cultivating castes are slow to take advantage of the opening up of opportunities outside the village and the agricultural sector. However, the dominant castes and classes have managed to gain disproportionately from the changing production relations. A result of these changes has also been rising inequality in most villages where income data is available.
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