Rural Non-Farm Employment (RNFE) on the rise in India since 2012 | Current Affairs | Vision IAS

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In Summary

  • Rural families increasingly function as mixed units, combining farming, animal rearing, wage labor, and small trades.
  • RNFE is driven by falling farm incomes (distress push) and agricultural prosperity creating demand for services (prosperity pull).
  • Government initiatives like MGNREGA, DAY-NRLM, and ONDC promote livelihood diversification, skill development, and market access for rural populations.

In Summary

Long-term analysis of the Situation Assessment Survey (SAS) data highlights that rural families increasingly function as "mixed" (or pluri-active) units, combining crop farming, animal rearing, casual agricultural/non-agricultural wage labor, small trades, and migration.

Reason behind rising RNFE 

  • Distress Push:Falling farm incomes, land fragmentation and stagnant agricultural productivity have pushed workers towards non-farm occupations in states like Bihar.
  • Prosperity Pull: Green Revolution-led agricultural prosperity in states like Punjab and Haryana generated demand for rural industries and services, creating non-farm jobs.
  • Expansion of Construction & Services: Construction has become the largest absorber of rural labour, while trade, transport and other services have expanded steadily.
  • Diversification of Rural Livelihoods: Rural households increasingly combine farming, animal husbandry, wage labour, small businesses and seasonal migration to reduce dependence on agriculture and stabilise incomes.

Government initiatives leading to rise in RNFE

  • Integrated Rural Development Programme (IRDP), 1978-79: Promoted self-employment through income-generating assets and credit support.
  • MGNREGA (VB G-RAM-G): Provides wage employment while creating productive rural assets.
  • DAY–National Rural Livelihoods Mission: Promotes SHGs, rural entrepreneurship and livelihood diversification.
  • Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY): Provide skill development and entrepreneurship training for non-farm jobs.
  • Rural Self Employment Training Institutes (RSETIs): Offer entrepreneurship and vocational training.
  • Open Network for Digital Commerce (ONDC): Connects MSMEs, artisans, SHGs and rural producers to digital markets.
  • National Rural Economic Transformation Project (NRETP): Strengthens rural enterprises, value chains, digital finance and market access.
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ONDC (Open Network for Digital Commerce)

A government initiative designed to democratize e-commerce by creating an open and interoperable platform that connects buyers and sellers, fostering competition and innovation in the digital marketplace.

RSETIs (Rural Self Employment Training Institutes)

Institutions established by banks and supported by the Ministry of Rural Development to impart entrepreneurship and vocational training to rural youth, enabling them to start their own micro-enterprises.

Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY)

A skill development program for rural youth, funded by the Ministry of Rural Development, which aims to provide them with job-specific training to secure sustainable employment in the non-farm sector.

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