An Empirical Assessment of National Rural Livelihoods Mission’s Efficacy in Promoting Livelihood Diversification in Rural Assam, India

Abstract Livelihood diversification is increasingly recognized as a crucial strategy for rural households in underdeveloped economies to reduce risks linked to agricultural dependence and climate variability. This study assesses the effectiveness of India’s National Rural Livelihoods Mission (NRLM) in promoting livelihood diversification, based on primary data from 405 rural households across Jorhat, Morigaon, and Dhubri districts of Assam, a northeastern state of India. The Simpson Index of Diversity (SID) was used to measure the extent of diversification, while logistic regression analysis identified key socio-economic and institutional determinants. The findings indicate that NRLM beneficiary households have significantly more diversified livelihoods than non-beneficiaries. Factors such as educational attainment, household size, NRLM membership, participation in training programs, and proximity to urban centers were found to significantly influence diversification decisions. The study confirms NRLM’s role in expanding rural livelihood opportunities beyond traditional agriculture. To enhance economic resilience and reduce rural vulnerability, policy efforts should focus on strengthening skill development, improving access to education, and expanding NRLM’s institutional support across rural Assam.