Diversification is essential because there is greater risk in depending exclusively on farming for livelihood and to provide productive sustain able livelihood options to rural people. Agricultural diversification is a process through which farmers shift their farm enterprises from traditional to high value added modern enterprises. It enhances farm income, generates employment opportunities and manages risk in agriculture. Crop diversification helps divide the risk posed by fluctuating market prices. If in one season the vegetables don't perform well, the farmer can sail through by the income brought in by the pulses that year and when both the crops get good price, there is also an opportunity to maximize the earnings. Agriculture Diversification refers to either a change in cropping pattern or the farmers opting for other non-farming options like poultry farming, animal husbandry, etc. This practice allows farmers to expand the production, which helps generate a higher level of income. The sector employs 49.6% of the workforce, which is often seasonal, under-employed and underpaid, and accounts for ~17% of India's GDP. India's large and diverse agricultural sector makes it a major producer of cereals, sugar, milk, fruits and vegetables, eggs and spices. Diversification includes two aspects, one relates to diversification of crop production and the other relates to a shift of workforce from agriculture to other allied activities and non-agricultural sector. Agriculture is one of the most important sectors of Indian economy. It is the supplier of food and raw materials in the country. At the time of independence more than 70 per cent of India's population depended on agriculture to earn livelihood. Agriculture Diversification refers to either a change in cropping pattern or the farmers opting for other non-farming options like poultry farming, animal husbandry, etc. Therefore, expansion into other sectors is essential to provide supplementary gainful employment and in realizing higher levels of income for rural people to overcome poverty and other problems.