Structural change in India’s employment scenario reflects the transformation of the economy from an agrarian base to a more diversified structure involving industry and services, alongside significant shifts in the nature, quality, and organization of work. Traditionally, India’s workforce was overwhelmingly dependent on agriculture, characterized by low productivity, seasonal employment, and disguised unemployment. Over time, economic reforms, technological progress, globalization, and demographic changes have altered both the production process and labour market dynamics, leading to complex patterns of employment transition rather than a simple linear shift. One of the most visible aspects of structural change has been the declining share of agriculture in total employment. While agriculture contributed the largest share of employment in the early decades after independence, its share has steadily decreased. However, this decline has not been proportionate to the sector’s shrinking contribution to GDP, indicating persistent underemployment and low productivity. A large number of workers continue to remain in agriculture due to limited opportunities in other sectors, reflecting a phenomenon often described as “labour surplus” or “incomplete structural transformation.” For instance, even with rapid growth in manufacturing and services, rural areas still exhibit high dependence on farming and allied activities, often as a fallback option. The industrial sector, particularly manufacturing, was expected to absorb surplus labour from agriculture, but this transition has been uneven. India’s manufacturing sector has experienced growth, yet it has not generated sufficient employment relative to its output expansion. This phenomenon is sometimes termed “jobless growth.” Capital-intensive production processes, automation, and the adoption of modern technologies have increased productivity but reduced the demand for labour. For example, large-scale industries such as automobile manufacturing and steel production employ fewer workers per unit of output compared to traditional labour-intensive industries. Small and medium enterprises (SMEs), which have higher labour absorption potential, often face constraints such as limited access to credit, infrastructure, and markets, restricting their capacity to generate employment. In contrast, the services sector has emerged as the dominant contributor to both GDP and employment growth. Sectors such as information technology, telecommunications, finance, retail, hospitality, and transportation have expanded significantly. The rise of IT and IT-enabled