access, and crop diversification strategies can moderate these impacts, though implementing such measures often requires substantial investment and technical capacity.

The interconnections between farm and non-farm sectors represent another crucial dimension of rural economic development. Haggblade et al. (2010) documented that agricultural growth typically generates significant multiplier effects, with each dollar of additional agricultural income generating 0.60 to 0.80 dollars in second-round income gains in rural non-farm activities. Foster and Rosenzweig (2004) showed that agricultural productivity growth creates substantial positive spillovers for rural non-farm enterprises, particularly in areas with well-developed market access. These relationships significantly influence rural household welfare and operate through various channels, including increased demand for agricultural inputs, processing services, and consumer goods. Rising agricultural incomes often translate into increased demand for locally produced non-farm goods and services (Reardon et al., 2007). Davis et al. (2017) found that regions with stronger intersectoral linkages demonstrate greater resilience to economic shocks and more inclusive patterns of growth, making this understanding crucial for policymakers designing rural development interventions.

The relationship between weather shocks and the incidence and performance of rural nonfarm enterprises is a critical knowledge gap in the literature on rural economic development, particularly with regard to developing countries where the rural economy and livelihoods are highly dependent on the weather. While there is much literature on the effects of weather, particularly temperature and precipitation, on agriculture and farming, there is much less literature on the effects, or spillover impacts of these shocks on rural non-farm enterprises. In their 2014 paper, Dell, et al. cite various studies demonstrating the effects of temperature and precipitation on agricultural productivity and incomes, but they acknowledge a lack of understanding of the transmission pathways to other rural economic sectors. This knowledge gap is a particularly critical concern in light of the fact that non-farm enterprises account for from 35 percent to as high as 50 percent of rural household income in developing country contexts (Binswanger-Mkhize, 2013). In the very few studies that have been conducted, the relationships are complex. For example, Santangelo (2019) find that shocks to the productivity of agricultural activities can have widespread and consequential impacts on rural enterprises as a result of shifts in local demand and labor supply. Dercon (2014) similarly argues that identifying the wider effects of weather shocks, in addition to their impact on agricultural systems, is critical for the development of effective rural policies.

The current analysis addresses three key linkages associated with the rural economy in the state of Rajasthan. First is the impact of rainfall or weather variability on agricultural productivity wherein a farm productivity variable is constructed at the aggregate level which combines both the crop yields and the corresponding monetary values. The second is the impact of weather shocks on the non-farm enterprise in particular with respect to its total revenue, the value added by it and its distinctive operational characteristics. The third key link is how household consumption responds to agricultural productivity losses due to weather shocks, wherein this linkage is explored at the aggregate consumption level and at its individual expenditure variety. The analysis utilizes three key datasets, namely, the district-level ICRISAT database for 14 crops from 1990 to 2015, two rounds of the nationally-representative survey on unincorporated enterprises from the National Sample Survey Organisation (2010-11 and 2015-16), and the Consumer Pyramids survey datasets 3