Vol. 2, Issue 1, Part A (2016)

Abstract
Average per capita income in India, especially rural areas is quite low and highly unequally distributed across various states. Gap in per capita income between rural and urban areas is not only high but has increased over time. Income disparity, especially in different society of rural areas is quite high mainly due to inequality in resource base and earning opportunity. Since most of the rural people are largely dependent on agriculture as main source of livelihood, agricultural productivity and employment in agricultural sector substantially affect the income level of people. Hence, any policy/programme for rural development or enhancing income of rural people is not possible without adequate focus on managing agricultural sector effectively. This calls for developing adequate infrastructure and policy support for creating conducive atmosphere of promoting agro sector as business enterprises so that enough gainful employment can be created in the rural areas itself. In addition, there is a need to strengthen the entrepreneurial ability of rural households to diversify their farming system and start new ventures for enhancing their income opportunities.