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Indian Economy

Chapter 2: Rural Livelihoods

 


 

🔑 Key Concepts

1. What is a Livelihood?

  • A livelihood is the way people earn money and sustain their lives (food, shelter, education, health, etc.).

  • In rural India, most people depend on land, livestock, water, or forest resources for livelihood.

🌾 2. Types of Rural Livelihoods

Type Description Example
Farming People grow crops on their own or rented land. Wheat, paddy, sugarcane
Agricultural Labourers Work on others’ land for daily wages or share of crops. Ploughing, sowing, harvesting
Non-Farm Activities Livelihoods not based on agriculture. Pottery, carpentry, weaving, transport
Pastoralism Rearing animals for milk, wool, meat. Shepherds, dairy workers
Fishing & Forest-Based Livelihood from natural resources. Fishers, woodcutters, honey collectors

🧑‍🌾 3. Landless vs Landholding Farmers

  • Landless Farmers: Work for daily wages or under contracts.

  • Small/Marginal Farmers: Own less than 2 hectares of land.

  • Large Farmers: Employ others; may use machinery and irrigation.

🛠️ 4. Rural Economy is Vulnerable

  • Rain-dependent agriculture ⇒ droughts = loss

  • No formal job security or pension

  • Many take loans from moneylenders with high interest

  • Migration to cities during off-seasons is common

🔄 5. Livelihood Diversification is Key

  • People don’t survive on one income source

  • Example: A farmer may also drive a rickshaw or sell milk

📊 6. Government Support for Rural Livelihoods

  • MGNREGA (2005) – 100 days of rural employment

  • Self Help Groups (SHGs) – especially for rural women

  • Subsidies, crop insurance, and skill programs help improve income and resilience

🧠 Summary Points:

  • Rural India = multiple livelihoods: farming, fishing, weaving, etc.

  • Land ownership determines social and economic position

  • Vulnerability due to natural disasters and lack of stable jobs

  • Non-farm work and SHGs are crucial for empowerment

📝 MCQs for Practice

1. Which of the following is a non-farm activity?
(a) Harvesting paddy
(b) Milking cows
(c) Weeding fields
(d) Sowing wheat
✅ Answer: (b)

2. MGNREGA guarantees how many days of employment?
(a) 50
(b) 100
(c) 120
(d) 365
✅ Answer: (b)

3. Which of the following is a pastoral activity?
(a) Pottery
(b) Livestock rearing
(c) Harvesting
(d) Brick making
✅ Answer: (b)

4. SHGs are mostly associated with:
(a) Urban employment
(b) Big industries
(c) Women's empowerment
(d) Public transport
✅ Answer: (c)