Rural Economic Transformation in South Karnataka: An Analysis of Agricultural Diversification, Income Distribution, and Livelihood Patterns (2010-2023)

Abstract

This study examines the rural economic transformation in South Karnataka, focusing on the districts of Bangalore Rural, Ramanagara, Mandya, Mysore, Chamarajanagar, Hassan, and Chikmagalur from 2010-2023. Using comprehensive primary and secondary data, the research analyzes agricultural diversification patterns, income distribution changes, and evolving livelihood strategies among rural households. The study employs econometric analysis including Gini coefficient calculations, diversification indices, and regression modeling to assess economic transformation. Findings reveal significant shifts from traditional crops to high-value agriculture, with coffee and horticulture showing robust growth rates of 4.2% and 5.8% annually respectively. However, income inequality has widened with the Gini coefficient increasing from 0.42 to 0.51 during the study period. Non-farm employment has grown substantially, contributing 38% of total rural household income by 2023, up from 22% in 2010. The research provides evidence-based recommendations for inclusive rural development strategies that can address growing inequality while maintaining agricultural competitiveness.