Impact of non farm sector on the living conditions in the rural areas of Punjab a study of Ludhiana and Muktsar districts

Abstract

In the present study, an attempt has been made to examine the impact of rural non-farm sector on the living conditions among non-cultivating and cultivating households in the districts of Ludhiana and Muktsar. The results of the study reveal that rural non-farm sector has failed to put significant impact on the living conditions of non-cultivating households in the sample districts. The proportion of rural non-farm sector is found insignificant in the rural areas of Punjab. The Logit results of factors affecting rural non-farm activities accept the hypothesis that the pull and push factors are equally responsible for shift towards rural non-farm sector. Pull factors in the form of gender of the head of household, age, level of education, value of farm and non-farm assets, work force participation rate and distance from the nearest town are found newlineinfluencing participation in rural non-farm activities in the sample districts.Whereas, household size, number of dependents and lower caste are identified as major push factors influencing participation in rural non-farm activities in the two sample districts. There is an ample scope for the growth of rural non- farm sector in the rural areas of Punjab. The switching over from strategy in the form of overall diversification can go a long way in sustaining the rural economy of Punjab.