In "Rural Development", the concept of "Diversification " becomes very important. According to you, why there is NEED of diversification?

Greater risk in depending exclusively on single source of livelihood

We have often heard this saying that "Don't put all your eggs in the same basket", that means the concept of diversification reduces the risk factor.  The need for diversification in the case of rural development 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