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The study, conducted in the state of West Bengal, has examined the nature, extent and causes of livelihood diversification among different livelihood groups. It has found that the level of livelihood diversification highly varies across regions and also across different livelihood groups. The importance of agriculture as a source of livelihood is decreasing and that of the non-farm sector is increasing in West Bengal. For the resource-poor households, livelihood diversification is a survival strategy to cope up with the adverse livelihood shocks and to manage the risky environments. On the other hand, for resource-rich households, livelihood diversification is an attempt to reap the benefits of development. In backward regions like Purulia district, not only the average household income or numbers of income sources are limited but their level of diversification is also quite low. The government needs to develop appropriate strategies, especially for the resource-poor rural households, to facilitate successful livelihood diversification. A comprehensive development plan, including increasing the scope for non-farm activities, is urgently needed for the backward regions in the state.

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