This research paper discusses about the role an
d functions of the Non-farm sector in the
development of Indian economy. Rural non-farm secto
r (RNFS) has gained momentum especially
after liberalization. It is major objective of the
limitation agriculture sector in providing gainful
employment to the surplus workforce. Besides, due t
o the seasonal fluctuation and environmental
degradation, the agricultural workforce itself is n
ot able to obtain the sufficient livelihoods from
agriculture. This creates the problem of unemployme
nt and underemployment. Due to this situation,
rural non-farm sector is considered to be the panac
ea for the problem of poverty, unemployment and
rural out migration.