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India although being a primarily agrarian economy, is still facing a lot of severe problems in its agricultural sector. In the present research paper a study has been done on the reasons for the distress in the agricultural sector. It was found that scarcity of labour and highly expensive labour force is the main reason for agriculture being no more viable activity at present. The reasons behind the existence of labour problem has been studied. It was found that this problem was not due to scarcity or shortage of labour in te market that the problem existed. The rural areas in the country are not sparsely populated and nearly 65 % of the Indian population lives in villages. The labour shortage had occurred because of implementation of two schemes by the Government of India in rural areas. The MGNREGA and the Antodaya Anna Yojana being implemented by the administration compositely results in a situation where potential labourers are unwilling to work beyond a certain limit and this limit is too little to suffice the demand for labour in the farm sector.

Critical Analysis of the Government Schemes and its Impact With Specific Reference to Human Resources Issues in the Unorganized Sector in Rural Areas