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Home/Practice questions/Economics
EconomicsIndian Economic Development: Rural Development

According to NCERT, diversification towards new areas is necessary fo…

Ramesh’s family owns a small plot of land in a village. The family grows paddy in the Kharif season, but in the Rabi season there is little work on the farm. Ramesh’s brother has started rearing goats and poultry. Ramesh is thinking of taking a job in a food processing unit that has opened in a nearby town. The family has also been told that fish can be raised in the village pond.

According to NCERT, diversification towards new areas is necessary for which of the following reasons?

Answer & explanation+

Correct answer: option 3

The correct answer is Option (3) → Both (1) and (2)

Diversification is needed for two reasons: to reduce the risk of depending on farming alone, and to give rural people productive sustainable livelihoods.

Option (1) To reduce the risk from the agriculture sector — Correct. Correct statement, but it is only one of the correct points, so on its own it is not the answer.

Option (2) To provide productive sustainable livelihood options to rural people — Correct. Correct statement, but it is only one of the correct points, so on its own it is not the answer.

NCERT (2026-27): “5.5 Diversification into Productive Activities Diversification includes two aspects - one relates to change in cropping pattern and the other relates to a shift of workforce from agriculture to other allied activities (livestock, poultry, fisheries etc.) and non-agriculture sector. The need for diversification arises from the fact that there is greater risk in depending exclusively on farming for livelihood. Diversification towards new areas is necessary not only to reduce the risk from agriculture sector but also to provide productive sustainable livelihood options to rural people. …”

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