Agriculture in developing countries is not the only sector, sometimes not even the dominant sector for household employment and income in rural economy. Non-agricultural activities on the contrary often account for a large percentage of rural income and rural employment and are less closely linked with agriculture. In India, it is observed that an excessive dependence on agriculture as a source of livelihood is on steady decline and rural employment base has accordingly witnessed a modest degree of diversification. In view of these factors, it has been attempted to review determinants of rural non-farm employment in the Indian economy. The study is primarily based on secondary data pertaining to three different periods, namely, 1983, 1993–94 and 1999–00. Study findings suggest that rural literacy and rural road length in particular and other rural infrastructure in general are important determinants for rural non-farm employment in India. It is proposed to intensify efforts in the field of rural non-farm sector such as covered under ‘Bharat Nirman’ programme of the Government of India.
