Explain the role of non-farm employment in promoting rural diversification.

Question

Accepted Answer

The agricultural sector in India is overcrowded, so a major portion of the labour force needs to find alternate employment opportunities in other non-farm sectors. Diversification towards non-farm sectors not only reduces the risk from the agriculture sector but also provides productive sustainable livelihood options to rural people.

The non-farm economy has several segments. Some segments possess dynamic linkages that permit healthy growth, while others are in subsistence, low-productivity propositions. The dynamic sub-sectors include agro-processing industries, food processing industries, the leather industry, tourism, etc. Those sectors which have the potential but seriously lack infrastructure and other support include traditional home-based industries like pottery, crafts, handlooms, etc.

In terms of employment, the majority of rural women find employment in agriculture, while men generally look for non-farm employment. In recent times, women have also begun looking for non-farm jobs.

Thus, non-farm employment promotes rural diversification by absorbing surplus labour from an already overcrowded agriculture sector, reducing the risk of depending solely on agriculture, and creating alternative avenues of sustainable livelihood for the rural population.