Abstract
Given the changing scenario in rural India, an attempt has been made in the paper to understand the agrarian transformation of the Indian economy, with a specific focus on rural non-farm sector in Gujarat. The paper tries to decipher the ways the rural economy has responded to the changes. It also attempts to find out alternatives as well as policy implications, for strengthening the process of rural development, in the context of an industrialised economy like Gujarat. It appears that rural transformation in Gujarat has taken place without creating significant linkages with the rural non-farm economy. The non-farm employment has taken place mainly in urban/industrial agglomerations, rather than in rural areas. Therefore, it seems to have emerged as a distress led sector in rural Gujarat. The paper, based on the findings of primary as well as secondary data, argues that better sectoral and spatial linkages will strengthen the rural non-farm employment in the state, by fostering rurbanisation processes.
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