Navigating Deprivation: Livelihood Diversification and Multidimensional Well-Being in Rural Assam

In India, rural livelihoods are experiencing a continuous and significant transition from agriculture to non-agricultural activities over the years. This paper examines the extent to which such changes contribute to the economic well-being of rural households in Assam, primarily an agrarian state of North-East India using primary data collected across the state. Using a multi-dimensional approach, the study incorporates both monetary and nonmonetary dimensions to assess well-being, using the Simpson Diversification Index and the Multidimensional Poverty Index (MPI). This study also implies that non-agricultural income complements total household’s income rather than substitutes agricultural earnings, with remittances received by households. However, perpetual vulnerabilities remain, propelled by inadequate access to healthcare and sanitation, alongside high out-of-pocket health expenditure. The MPI Value (0.12) in the study implies relatively low multidimensional poverty, yet deprivation remains in specific indicators such as educational attainment, cooking fuel, and hygienic flooring. The results indicate that diversification is often distress-driven, restrained especially by household asset ownership and social capital, and unable to ensure long-term improvement in standards of living and quality of lives. The study further highlights the need for focused and specific interventions to enhance skills and improve human capital, create remunerative non-agricultural employment and strengthen rural infrastructure among households in the state.