Improving agricultural productivity has been a core strategy for economic development and poverty alleviation for several decades, as this type of productivity was thought to facilitate structural transformation, which enables “surplus agricultural labour” to find employment in non-agricultural sectors. However, it has now been realized that the share of agriculture in national output declines more rapidly than the share of agricultural employment in total employment, trapping millions in “unproductive" agriculture and making them relatively poorer. Understanding this process and identifying appropriate responses is critical for poverty alleviation and inclusive growth. Based on data analysis and policy reviews, in the present paper, it has been found that structural transformation processes are incomplete in many developing countries.