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Contributed by Vivek Vyas PRM-23100 Some major problems that confront Rural Non-farm Employment are as follows Changes in consumer preferences - The problems of low demand and excessive competition are the major problems that rural non-farm employment faces. They appear to be caused by a lack of ability to identify and connect to more distant markets, plus trouble getting the design, quality, and delivery up to standards demanded by consumers. The repercussions –It can therefore be expected that there would be a tendency for rural-based manufacture of basic consumption goods to decline, with an associated decline in the employment generated by such activities. Diseconomies of scale - The shift to services has occurred well before manufacturing matured, and the shift to larger scale forms of organisation has been extremely gradual. This has resulted in semi-capitalist forms of organisation and smaller scale units still dominate the non-agricultural sector in both urban and rural areas. This goes to show the structural stagnation in India’s development. There are signs that even this gradual process of diversification of economic activity has lost momentum during the 1990s. This has resulted in stunted growth of the