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Status, Impact, and Factor Determining Rural Non-farm Economy of India: A Review

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Indian Journal of Economics and Development
Volume 16 No. SS, 2020, 68-76
DOI: https://doi.org/10.35716/ijed/NS20-005
Indexed in Clarivate Analytics (ESCI) of WoS

Arghyadeep Das1, R. Raja2, and Neela Madhav Patnaik3

1DairyEconomics, Statistics and ManagementDivision, 3Dairy Extension Division ICAR-NDRI, Karnal-132 001 and
2ICAR-Central Soil Salinity Research Institute, Karnal-132 001

Corresponding author’s e-mail: dasarghyadeep198@gmail.com

ABSTRACT
The rural non-farm sector (RNFS) involves a spectrum of economic activity in rural areas and encompasses all rural productive entities other than farm holdings. It has the potential to play a pivotal role in holistic and inclusive development of India’s rural areas by increasing the employment and wages of rural labour, which can reduce income inequalities. The review was carried out in order to explain the present status of RNFE state wise as well as overall to get a comprehensive view on the topic. The review study also focuses to disaggregate RNFE on the basis of gender, size of landholding and castes. Literature depicting the impact of RNFE on rural livelihoods especially in employment and poverty and factors determining it also been compiled to get an overall idea on the study.

Keywords
Employment, poverty, rural non-farm economy, wage.

JEL Codes
J24, J31, J62.

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