India has been predominantly an agriculture based economy, where more than half of its work force depend on agriculture for their living. While the share of agriculture in gross domestic product has substantially declined over the years, a similar but rather slow decline has been seen in dependence of workforce on agricultural sector, resulting in a slow growth in the incomes of those dependent on agriculture for their livelihoods. With the change in farming practices over the years, regional disparities with respect to crop output, decline in poverty have resulted in rising inequalities. A precondition for rural development is advances in management and entrepreneurship in agriculture & agri-business as well as in value addition and linkages within agriculture and to non-agriculture sectors. Appropriate policies in these areas (governments, development agencies, donors and multinational companies)must be implemented to ensure rural economic development.
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