Explain the role of non-farm employment in promoting rural diversification.

Non-farm sector is an alternative employment opportunity for people in the rural sector. It has different segments for example the traditional household-based industries like pottery barn, handlooms, etc. and dynamic sub-sectors like food processing units, agro-processing units, tourism, etc. Some of these segments have potential for growth while others may have low productivity. Lack of infrastructure may also be a hindrance for rapid development of the non-farming sector. On the positive side, the potential for this sector has opened employment opportunities for women as well. The produce from this segment contributes to the growth of GDP.