Context -

The Lewis Model, which expected more farm workers to move to factories, didn't happen in India as predicted.

The Lewis Model:

• Developed by economist William Arthur Lewis.
• Developed by economist William Arthur Lewis.

Why It Works in China:

• Successful absorption of rural labor in the industrial sector.
• China transformed into the "world's factory."

Challenges in India:

• Differences in industrialization and technology.
• Capital-intensive manufacturing limits labor absorption.
• Disguised unemployment in agriculture complicates transitions.

Niti Aayog's Approach:

• Exploring new models for job creation.
• Focus on value addition and agribusiness.
• Emphasizing bio-fuels, bio-based products, and sustainable agriculture for employment generation.