Role of Non-Farm Sector in the Transformation of India’s Rural Economy

This research paper discusses about the role and functions of the Non-farm sector in the development of Indian economy. Rural non-farm sector (RNFS) has gained momentum especially after liberalization. It is major objective of the limitation agriculture sector in providing gainful employment to the surplus workforce. Besides, due to the seasonal fluctuation and environmental degradation, the agricultural workforce itself is not able to obtain the sufficient livelihoods from agriculture. This creates the problem of unemployment and underemployment. Due to this situation, rural non-farm sector is considered to be the panacea for the problem of poverty, unemployment and rural out migration