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Poverty Alleviation through Rural Non-Farm Sector in Rajasthan-The Ruda Model

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The Indian economy grew at an impressive rate in the last decade and demographic pressure also slowed. Yet, the incidence of unemployment (CDS) towards the end of the 2010 was more than seven percent. The situation is especially disconcerting in the rural sector. Employment in rural sector, which is associated mostly with agriculture, has stagnated during the 90s (Jha 2006). Considering the increased pressure on land there exists limited scope for increasing employment in agriculture so that employment in the non-farm sector becomes an important option.

Studies also suggest that with the process of development, the share of non-farm income and employment in the total income and employment of the rural households increases in the developing countries. A combination of farm and non-farm income at the household level provides resilience against adverse situations in either of the sectors, though agriculture is known for more frequent adversity. There are also evidences to show that productivity and profitability in the non-farm sector is generally higher than in the farm sector; as are the average wages and working conditions that obtain in the non-farm sector (Fisher et al. 1998). A greater reliance on the non-farm sector would therefore provide a demand-pull to rural economy and also ensure welfare for rural workers.

In India, economic opportunities in the non-farm sector have also increased. A comparative account of the non-farm sector in the rural vis--vis the urban sector however, shows significant disparity in terms of its size and growth. The lopsided nature of growth of the non-farm sector is causing a problem of rural - urban migration. The small base of the rural non-farm sector located within a large rural population is in fact indicative of the employment potential in the rural non-farm sector (RNFS). Achievement of employment growth as per its potential may require a more favourable policy environment; and the present study attempts to search for these policy options. The study of rural diversification with the objective of ensuring a proper policy match requires first an understanding of the pattern of farm and non-farm employment in the rural sector. The rural non-farm sector (RNFS) encompasses all non-agricultural activities: mining and quarrying, household and non-household manufacturing, processing, repair, construction, trade and commerce, transport and other services in villages and rural towns undertaken by enterprises varying in size from household own-account enterprises to factories. The RNFS thus comprises diverse activities while sustained growth in the RNFS depends on a varied set of factors, depending on the kind of impetus, positive or negative, that these factors provides to the rural economy RNFS will experience development- and distress- related rural diversification. For a better understanding of rural diversification it is necessary to study the participation of rural households in particular non-farm activities; the motivation behind the decisions as well as the ability of the households to participate in these. The state plays an important role in encouraging positive rural diversification. The rural economy includes several heterogeneous rural activities having different demand and supply conditions in their input and output markets. Government policies therefore, in most of the cases are industry specific. In a labour surplus country like India, the government also has a role to play in regulating and mediating in the rural labour market.

Number of Pages of Project Report: 80
Package Includes: Synopsis/Project Proposal + Project Report
Project Format: Document (.doc)

Table of Contents of Project Report:
Executive Summary
CHAPTER 1: Introduction
CHAPTER 2: Objectives of the Study
CHAPTER 3: Rural Employment in India
3.1 Rural employment: some macro trends
3.2 Livelihoods in Rajasthan
CHAPTER 4: Literature Review
4.1 Pattern of rural employment
4.2 Quantitative Aspects of rural Employment
4.3 Quality and Nature of rural Employment
4.4 Real Wages and Earnings
CHAPTER 5: Rural Non Farm Development Agency (RUDA)
5.1 The Organization
5.2. The Approach
5.3. Organization Structures
5.5 Marketing Strategy
CHAPTER 6: Research Design and Methodology
CHAPTER 7: Profile of the Study Area
CHAPTER 8: Socio Economic Profile of Sample Borrowers
CHAPTER 9: Implementation Aspects of the Schemes
CHAPTER 10: Cost of Investment and its Financing
Annual Plan 2011-12
(Financial Progress upto the June 2011) (Rs. In Lacs)

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