The present study was carried out to evaluate the extent of income diversification in Chumoukedima rural area of Nagaland State; aimed to access the sources and status of diversifications was highlighted. The present research investigation was carried out during the agricultural year 2020-22 with a total of 160 respondents was selected by following a multi-stage simple random stratified sampling technique. Study reveals that the overall average value of Simpson Index of diversification was 0.283 and more than 50.00 per cent of the rural households had “medium” level diversified livelihood. A multiple regression analysis had positive and significant effects on the extent of livelihood diversification.

Highlights

• Status and level of diversification by Simpson Index Diversification method.
• Estimated Variance Inflation Factor to avoid the serious multicollinearity problem.
• To highlight the different Factors affecting the Income Diversification Index.