Why in India the maximum people are engaged under self employment

Dear Student,

This situation can be viewed under 2 scenarios:

a.) According to Region:

In the urban areas, in India, 41% workers are self-employed and 59% are hired. In rural areas, 54% are self-employed and 46% are hired. The percentage of self-employed persons is more in the rural areas, which comprises of 70% of total workforce as the workers there are usually engaged in working on their own farms and usually not as qualified to work in offices. Contrarily, in the urban areas, workers tend to be employed in factories or offices because of higher qualifications and skills than their rural counterparts.

 

b.) According to Gender:

Female workers give prefer self-employment over hired employment. It is because women, both in rural and urban areas are less mobile and thus, prefer to engage themselves in self employment.

Regards