Solution

Agricultural diversification refers to the diversity in crop production and allocating of agricultural workforce in other allied activities such as fisheries, poultry and livestock, also in non-agriculture sector. The following points explain the importance of agricultural diversification:

1. Indian farmers are dependent on monsoon for farming which is risky, so diversification enables farmers to earn more from occupations that are non-agricultural.

2. While there are a lot of farming opportunities in the Kharif season, the Rabi season brings with it difficulties in irrigation which makes employment less, diversification helps by providing an alternative source of income.

3. Agriculture as a job providing proposition is already saturated and is unable to generate further employment, therefore non-agricultural sectors can be explored as a potential source of revenue.

4. Due to possessing dynamic linkages several non-farm sectors help in enhancing the economic growth.