Industrialisation and Rural Household Transformation: Comparative Evidence from Villages Surrounding the Vemgal Industrial Area, Karnataka: 26261
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https://doi.org/10.35716/IJED-26261
Author: S. Likhitha, M. N. Venkataramana, Mahin Sharif, K. B. Vedamurthy, and M. S. Ganapathy
Author Address: Department of Agricultural Economics, University of Agricultural Sciences, GKVK, Bengaluru, Karnataka (India)
Abstract
Rapid
industrial expansion in Karnataka had brought visible changes to the agrarian
economy of surrounding villages. This study compared two villages in Kolar
district, one near and one away from the Vemgal Industrial Area (VIA), to
understand how industrial proximity shapes landholding, occupation, income and
poverty at the household level. Based on primary data from 200 households
collected during 2024-25 and analysed through paired t-test, multinomial logit
regression, poverty indices, and diversification measures, the study found that
landholdings decreased from 2.15 to 0.32 acres in the industrial village.
Households near the VIA had diversified into factory work and services, earned
higher incomes, and recorded lower poverty levels. However, income inequality
was also higher. The findings called for targeted policy action on land
compensation, skill building, and equitable employment creation in
industrialising rural areas.
Keywords
Household welfare, income diversification, industrial
proximity, non-farm employment, rural poverty.
JEL Codes
I32, J43, O13, O18, R11.