Farm vs. Non-farm rural households

What we know is GDP share in agriculture and some data on rural employment in agriculture. What household level data can show is…

Methodology

• The table on the left is derived from obtaining all sources of household income for each household in rural India and the contribution of agricultural income to total income of each household was calculated. The total farm-based income from all households was calculated and total income of all
  households was calculated; and share of agricultural income for rural India was established to be 35%.
• Sources of income have been categorized as shown – pure farm (100% income from farm related activity), pure non-farm (0% income from farm-based activity), mixed households (income from both farm and non-farm) and households where agricultural labour is the only source of income.
• Share of households in each source of income category and share of income they have, has been shown.

Insights from this data include

1. The precise extent to which as diversified itself away from agriculture and the extent of farm income.
2. Households that rent land but don’t own it. We will be monitoring the shift in this data over time as agri reforms start to kick in.