Which policy instrument most directly drives the structural expansion of Rural Non- Farm Employment (RNFE) in India?
Promotion of self-employment under NRLM
Rural Non-Farm Employment (RNFE) means rural jobs outside agriculture – small manufacturing, trade, services, handicrafts, food processing and similar enterprises.
Its structural expansion requires moving rural workers into such enterprises. The National Rural Livelihoods Mission (NRLM, now DAY-NRLM) does this directly by organising poor households into Self-Help Groups, giving them credit, skills and market links, and promoting self-employment and micro-enterprises.
The Public Distribution System provides subsidised food grains; it supports consumption and food security but does not create non-farm jobs.
Minimum Support Price stabilises the prices of farm produce, which supports farm incomes and keeps the focus on agriculture rather than diversification away from it.
Input subsidies on fertiliser, seeds, power and irrigation lower the cost of farming; they too strengthen farm activity, not non-farm employment.
Hence, the answer is Promotion of self-employment under NRLM.
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