Rural and Urban Livelihoods
Livelihood
refers to the work, occupation, or job that one does to earn a source of
income. There are various occupations available that one can follow to earn a
living to meet their basic needs, support their families, and improve their
quality of life. One can do fishing, agriculture, mining, banking, teaching or
producing goods and services, etc. These economic activities can be grouped
into three sectors based on their nature and relationship to the production and
distribution of goods and services. These three sectors are: Primary,
Secondary, and Tertiary occupations.
Primary occupations can be defined as occupations which are directly connected to nature, for example, agriculture, animal rearing, mining, and fishing. Agriculture involves growing crops like wheat in the soil. Mining involves extracting (taking out) minerals from the Earth.
Secondary occupations are those which convert raw materials obtained from nature into more. useful products, for example, manufacturing. Manufacturing involves converting natural or primary products like wheat or minerals into finished products like flour or metals respectively. The secondary occupation add value to the products (finished) obtained by primary sector (raw material). Secondary occupation process and make goods ready for consumption.
Tertiary occupations can be defined as occupations which provide services to people. No item is produced through such occupations, for example, trade, transport, teaching, banking, post, etc. People engaged in primary, secondary and tertiary occupations/sectors are dependent on each other. A farmer grows crops, which are required by a manufacturer to make products. Both the farmer and the manufacturer depend on transporters to transport their goods. They also depend on banks for loans.
In our country, people in rural and urban areas make their living in different ways. While agriculture is the main occupation in rural areas, people in urban areas are chiefly employed in factories, trade, and services.
Inter-linkage of Primary, Secondary and
Tertiary Activities |
||
Primary Activities ↓ |
Secondary Activities ↓ |
Tertiary Activities ↓ |
Provide raw material |
Convert raw material into finished
goods |
Transport the finished goods; Provide
services |
RURAL LIVELIHOODS
AGRICULTURE
Agriculture
is the chief occupation of people in the villages. In fact, nearly two-thirds
of the people in our country depend on agriculture for their livelihood.
Depending on the size of land they own, farmers can be grouped into the
following Categories
One-fifth
of the farmers in our country belong to this group. As they earn a lot of money
by selling their produce, they often run small businesses, such as shops, small
factories or mills, etc., in rural areas. They also lend money to people in the
village.
They do not employ labourers to work on their fields. They generally use simple tools and implements. If required, they rent farm machinery such as tractors and threshers. They usually have to borrow money from money-lenders or traders to buy good quality seeds and pesticides. In return for the loan, they often have to sell their produce at low prices to the traders. Nearly four- fifth of farmers in our country belong to this group.
They
are often paid very little for their work. Their work is not regular, i.e.,
they usually work on farms for a couple of months in a year during the sowing
and harvesting seasons. For the remaining part of the year, they are forced to
travel outside the village to find work. As they are quite poor, they usually
borrow money to make ends meet.
AGRICULTURE AND DEBT
We
know that most of the farmers in our country do not have enough money to buy
good quality seeds, fertilisers, and pesticides for their farms. They usually
end up taking loans from money- lenders or banks at high interest rates to buy
these basic things. As most farmers do not have funds to irrigate their fields,
agriculture in our country is still heavily dependent on monsoons. In case the
rain fails to come on time or there isn't enough rainfall, the crops fail.
Sometimes, crops get destroyed because of too much rainfall or due to action of
pests.
With
no crop to sell, the farmers have no way of paying back their loans. They do
not even have any means of feeding their families. This forces them to borrow
some more money to grow a new crop and to meet the needs of their families.
Over time, these loans become so big that the farmers are unable to pay them
back completely. In the past few years, this situation has become quite common
in our country. Troubled by mounting debt, many farmers have even been forced
to commit suicide.
REARING CATTLE AND POULTRY
Besides
agriculture, many people in rural areas also rear cattle like cows, buffaloes,
and goats. Cows and buffaloes are reared for their milk. They are also used to
plough fields. Goats are reared for their milk as well as meat. People also
raise poultry like chickens and ducks for their meat and eggs They may either
consume the meat and eggs themselves or sell it in the market.
DAIRY FARMING
Dairy farming is a major source of livelihood for many rural families. Dairy farmers raise a number of cattle like cows for their milk. They usually sell the milk in the village or nearby towns. At times. they make products from the milk, such as cheese, butter, cream, etc., and sell them in the market. Many dairy farmers also sell milk to cooperative societies in their villages. Such milk cooperatives ensure dairy farmers get a fair price for their milk. The cooperatives also take care of transporting the milk and selling it in the market. Amul is an example of a milk cooperative society.
FISHING
Fishing
is a major occupation in villages along the coast. Groups of fishermen usually
go out to the sea in boats to catch fish. They keep aside some of the fish
caught for their families and auction the rest. The money they earn from the
auction is divided among all the fishermen in the group. They often do not own
boats or nets and have to rent them. Therefore, some of the money from the
auction is also given as rent for the equipment. Sometimes, fishermen take
loans from the bank to buy equipment like engines so they can go further into
the sea and catch more fish. Fishing cannot be practiced throughout the year.
Fishermen
do not go out to the sea during the monsoon season. During this time, they are
usually forced to borrow money from traders. In return, they have to sell their
fish to the traders at very low rates once the fishing season begins again.
OTHER OCCUPATIONS
TYPES OF WORKERS IN URBAN AREAS
India
has 300 big cities with more than 50 cities having a population of over 1
million and more than 7900 towns. Unlike villages, people in these urban areas
are mostly engaged in secondary and tertiary occupations. People in urban areas
are either self-employed, or they are employed as casual or permanent workers.
Self-employed people are those who have their own business such as shops or factories. They are not employed by anyone. They often employ other people to work for them. Casual or seasonal workers are those who are employed for short durations of time, depending on when the employer needs them.
They are usually paid at the
end of each day or as soon as they complete the work. Therefore, they are also
known as daily wage labourers. They have to work very long hours in poor
working conditions. If they complain, they lose their jobs. They can even be
asked to leave if the amount of work decreases. Examples include labourers,
carpenters, tailors, construction workers, etc.
Regular
workers are those who work throughout the year in private or government
offices, factories, etc. They go to office every day and get a regular salary.
Their work is clearly defined and they are not asked to leave if their office
or factory has little work. Unlike casual workers, they get a number of
benefits. They do not have to work on Sundays and holidays. They can even take
leave if they fall sick. Some companies pay medical bills for them and their
families. They also get pension. Under the pension scheme, a part of a worker's
salary goes to a fund set up by the government. The worker earns an interest on
the amount. When the worker retires, he gets the money and the interest amount
so he can live comfortably in old age.
FACTORIES AND INDUSTRIES
People
working in factories include managers, designers, engineers, machine operators,
and labourers. Many labourers employed in factories are casual workers. Some
factories work continuously all day. Workers work on a machine for a certain
amount of time every day, also known as a shift. At the end of the shift, their
work is taken over by another set of workers.
SERVICES
SHOPKEEPERS
Many
people in cities own shops. They are not employed by anyone. They usually run
their own shops or employ other people to work under them. Shops can be small
or large. They sell different things, such as paints, crockery, electronics,
footwear, clothes, groceries, books, etc. Nowadays, there are many large malls
that have opened up in cities. They usually have a number of shops in them.
Markets in cities also have a large number of shops. Shopkeepers usually need a
license from the Municipal Corporation to open a shop in the market. The
Municipal Corporation also decides on which days a market will remain closed
during the week.
STREET WORKERS
In cities, a number of people also sell goods on the streets. They do not own shops, but sell their wares from street sides or carts. They are known as vendors or hawkers. There are as many as one crore vendors and hawkers in urban India today Vendors are usually not employed by other people.
Till
recently, vendors were considered a nuisance to traffic and people. The
government had even passed a law banning street vendors. But now the attitude
towards them has changed. The government is thinking of changing the law which
banned vendors. Many cities and towns are considering setting up separate zones
for vendors and hawkers, where they can sell their wares.
Besides
vendors, there are many other people in the city who work on the street. For
example, rickshaw pullers, taxi drivers, cobblers, barbers, florists, etc.
OTHER SERVICE
PROVIDERS
Call centres are also known as BPO units For example, a call centre
for a mobile phone company will answer questions about how to use the mobile
phone and download songs and movies on it. It will also register a complaint if
the mobile phone gets damaged or stops working.
MIGRATION
Migration
refers to the movement of people from one place to another. There are many
reasons which force people to move to another place-debt crop failure, lack of
work, natural calamity, better job, etc. These days, many villagers are
migrating to cities for education or work. They provide cheap labour to many
businesses and factories in the city. But their migration has also resulted in
overcrowding of cities. This has in turn created problems of housing,
sanitation, and infrastructure in the cities.
URBAN-RURAL LINK
Urban areas and rural areas are interdependent. Urban areas serve as big markets for food and other products made in the villages. Large amounts of food grains, fabric, oilseeds, oil, fruits, vegetables, poultry items, etc., produced in villages get marketed in urban areas.
Urban areas also provide employment to
rural people when there is no work in the villages. Similarly, rural areas
provide most of the food to urban areas. They serve as important sources of raw
materials for factories and industries in the cities. They also provide cheap
labour to the cities.
UNEMPLOYMENT
Due to linkage between urban and rural area, there has been a vast amount of migration of people from rural to urban areas. Though, employment opportunities are available in both rural and urban areas, there are many people who do not find jobs. This leads to large scale unemployment in the country.
This may be
due to lack of skills, or poor educational background. Thus, a number of
measures have been taken for the removal of poverty and unemployment in India.
The National Rural
Employment Act,
It
aims to enhance livelihood security in rural areas by providing at least 100
days of wage employment in a financial year to every household whose adult
members volunteer to do unskilled manual work.
The Prime Minister's
Rozgar Yojana,
Under
this scheme, the educated unemployed people from rural and urban areas who are
from low income families were given financial help by the government.
Start Up India
'Startup
India' is a scheme of the Government of India to encourage new ventures and
increase the country's employment level. It focuses on developing new skills
and ideas for startups to flourish. This scheme, in turn, would create many
employment opportunities and thereby reduce poverty. The government also gives
financial aid or loan assistance for new ventures.
Stand-Up India
It
was launched by the Government of India to support entrepreneurship among women
and SC & ST communities. The scheme aims to provide loans between 10 lakhs
and 21 crore for setting up a greenfield enterprise in manufacturing, trading
or services sector. This would lead to reduction in poverty level and thereby,
increase the employment opportunities.
New Terms |
|
Livelihood |
Livelihood, occupation, refers to the
work people do to earn money. |
Primary occupations |
Occupations which are directly
connected to nature; include agriculture, fishing, and mining. |
Secondary occupations |
Involve processing of primary products |
Tertiary occupations |
Occupations which provide services to
people; include education, health, transport, and trade. |
Large farmers |
Own large plots of lands and are quite
rich, they mainly grow crops for sale; they do not work on their farms but
employ labourers to cultivate crops. |
Subsistence agriculture |
Refers to a type of farming where a
farmer grows crops to meet his family's food requirements. |
Small farmers |
Own smaller plots of land than large
farmers; grow crops mainly for subsistence; the farmers and their families
work on the fields themselves. |
Marginal farmers |
Own very little land; they barely
produce enough food to meet their family's requirements; they also work on
other people's farms to earn money. |
MCQs on Livelihoods (With Answers & Explanations)
1. What is a livelihood?
A) A way of spending free time
B) A means of earning money to sustain
life
C) A social activity
D) A government scheme
Answer: B) A means of
earning money to sustain life
Explanation: Livelihood refers to the
means and resources people use to earn a living, including skills, work, and
financial support.
2. Which of the following is
NOT a primary occupation?
A) Fishing
B) Agriculture
C) Teaching
D) Mining
Answer: C) Teaching
Explanation: Primary occupations involve
natural resource extraction (e.g., farming, fishing, mining). Teaching is a
tertiary sector activity as it provides services.
3. The secondary sector is
also known as the:
A) Service sector
B) Manufacturing sector
C) Agricultural sector
D) Information technology sector
Answer: B) Manufacturing
sector
Explanation: The secondary sector includes
industries that process raw materials (like steel and textiles) into finished
products.
4. Which sector provides
services instead of goods?
A) Primary
B) Secondary
C) Tertiary
D) None of the above
Answer: C) Tertiary
Explanation: The tertiary sector includes
services like banking, education, healthcare, and tourism.
5. What is the main
occupation of people in rural areas?
A) Agriculture
B) Software development
C) Transport services
D) Banking
Answer: A) Agriculture
Explanation: A majority of rural people
depend on farming and related activities for their livelihood.
6. Farmers who own very
small plots of land are called:
A) Large farmers
B) Marginal farmers
C) Industrialists
D) Commercial farmers
Answer: B) Marginal farmers
Explanation: Marginal farmers own less
than 1 hectare of land and often struggle with low income.
7. Which of the following is
an example of subsistence farming?
A) Farming for export
B) Farming for personal consumption
C) Large-scale commercial farming
D) Farming using high technology
Answer: B) Farming for
personal consumption
Explanation: In subsistence farming,
farmers produce only enough food for their own needs, with little or no surplus
for sale.
8. What is the main reason
farmers take loans?
A) To build houses
B) To purchase seeds, fertilizers, and
tools
C) To buy vehicles
D) To go on vacation
Answer: B) To purchase
seeds, fertilizers, and tools
Explanation: Farmers borrow money to buy
essential inputs like seeds, fertilizers, and machinery for farming.
9. What is disguised
unemployment?
A) More people working than needed
B) A situation where people work overtime
C) A situation where people refuse to work
D) Unemployment due to technology
Answer: A) More people
working than needed
Explanation: Disguised unemployment occurs
when more people work in a job than required, reducing productivity (e.g.,
extra labor on small farms).
10. The majority of farmers
in India belong to which category?
A) Large farmers
B) Landlords
C) Small and marginal farmers
D) Industrial workers
Answer: C) Small and
marginal farmers
Explanation: Over 80% of Indian farmers
own small landholdings, making them economically vulnerable.
11. What is migration?
A) Movement of people from one place to
another
B) Growth of industries
C) Government employment schemes
D) Urbanization
Answer: A) Movement of
people from one place to another
Explanation: Migration occurs when people
move from villages to cities or between countries for better jobs.
12. Why do fishermen avoid
fishing during monsoon?
A) The government bans it
B) It is dangerous due to rough seas
C) They go on holiday
D) Fish are unavailable
Answer: B) It is dangerous
due to rough seas
Explanation: Monsoon season makes the sea
rough, making fishing unsafe for small boats.
13. Which of these is an
informal sector job?
A) Street vendor
B) Government teacher
C) Bank employee
D) Factory manager
Answer: A) Street vendor
Explanation: Informal jobs have no job
security, fixed wages, or benefits like pensions.
14. Which of the following
is a formal sector job?
A) Street vendor
B) Factory worker with social security
C) Daily wage laborer
D) Rickshaw puller
Answer: B) Factory worker
with social security
Explanation: Formal sector jobs provide
job security, fixed wages, and benefits like insurance.
15. What does NREGA
guarantee?
A) Free education for all
B) 100 days of wage employment in rural
India
C) Free healthcare
D) Food security
Answer: B) 100 days of wage
employment in rural India
Explanation: The Mahatma Gandhi National
Rural Employment Guarantee Act (MGNREGA) provides rural employment.
16. What is urban
livelihood?
A) Work related to farming
B) Work related to industries and services
C) Work related to fishing
D) Work related to village administration
Answer: B) Work related to
industries and services
Explanation: Urban livelihoods involve
factories, offices, shops, and services in cities.
17. Which of the following
is a self-employed person?
A) Government teacher
B) Factory worker
C) Street vendor
D) Bank clerk
Answer: C) Street vendor
Explanation: Self-employed people run
small businesses without fixed salaries.
18. Which Indian city is
famous for textiles?
A) Patna
B) Ahmedabad
C) Jaipur
D) Dehradun
Answer: B) Ahmedabad
Explanation: Ahmedabad is known for its
cotton textile industry.
19. What is seasonal
unemployment?
A) Job loss due to weather
B) Employment available only in specific
seasons
C) Unemployment due to recession
D) Unemployment caused by lack of
education
Answer: B) Employment
available only in specific seasons
Explanation: Seasonal unemployment occurs
when jobs are available only during planting/harvesting seasons.
20. How do rural and urban
areas depend on each other?
A) Rural areas provide food, and urban
areas provide markets and jobs
B) Urban areas provide land for farming
C) Rural areas depend on urban areas for
education only
D) There is no interdependence
Answer: A) Rural areas
provide food, and urban areas provide markets and jobs
Explanation: Villages supply food &
raw materials, while cities offer jobs & markets for trade.
21. Which of the following
is NOT a feature of informal employment?
A) Lack of job security
B) Irregular wages
C) Government-provided benefits
D) No fixed working hours
Answer: C)
Government-provided benefits
Explanation: Informal jobs (e.g., street
vendors, daily wage laborers) lack social security, fixed wages, and other
government benefits.
22. Which Indian government
scheme provides skill training for employment?
A) Midday Meal Scheme
B) Pradhan Mantri Kaushal Vikas Yojana
(PMKVY)
C) Sarva Shiksha Abhiyan
D) MGNREGA
Answer: B) Pradhan Mantri
Kaushal Vikas Yojana (PMKVY)
Explanation: PMKVY provides skill
development training to youth for better employment opportunities.
23. What is the main
occupation in desert regions of India?
A) Fishing
B) Nomadic herding
C) Tea plantation
D) Mining
Answer: B) Nomadic herding
Explanation: In deserts like Rajasthan,
people practice pastoral nomadism, raising camels, sheep, and goats for
survival.
24. What is the primary
reason for rural-to-urban migration in India?
A) Better weather
B) Availability of modern lifestyle
C) Better job opportunities
D) Lack of government schools
Answer: C) Better job
opportunities
Explanation: People migrate to cities in
search of higher wages and stable jobs due to lack of employment in rural
areas.
25. Which of these is an
example of gig economy work?
A) Permanent government job
B) Street vending
C) App-based delivery jobs
D) Office receptionist
Answer: C) App-based
delivery jobs
Explanation: Gig workers work on-demand
for companies like Zomato, Uber, and Swiggy without fixed salaries.
26. What is the full form of
MSME?
A) Medium and Small Managed Enterprises
B) Micro, Small, and Medium Enterprises
C) Major Small and Medium Enterprises
D) Multi-State Manufacturing Enterprises
Answer: B) Micro, Small, and
Medium Enterprises
Explanation: MSMEs contribute
significantly to India’s economy by providing jobs and promoting
entrepreneurship.
27. What is the primary
livelihood source for tribal communities?
A) IT jobs
B) Factory work
C) Forest-based activities
D) Retail business
Answer: C) Forest-based
activities
Explanation: Tribal communities often
depend on hunting, gathering, and forest products like honey and medicinal
plants.
28. Which state is the
largest producer of tea in India?
A) Kerala
B) Tamil Nadu
C) Assam
D) Himachal Pradesh
Answer: C) Assam
Explanation: Assam is the largest
tea-producing state in India, contributing significantly to the global tea
market.
29. What does 'Blue Economy'
refer to?
A) Manufacturing industries
B) Ocean-based economic activities
C) E-commerce businesses
D) Water conservation schemes
Answer: B) Ocean-based
economic activities
Explanation: The Blue Economy includes
fishing, marine tourism, shipping, and ocean energy industries.
30. What is an SHG
(Self-Help Group)?
A) A sports team
B) A group of people saving money together
C) A business corporation
D) A government body
Answer: B) A group of people
saving money together
Explanation: SHGs are small groups
(especially women) who collect savings, take loans, and start small businesses.
31. What is the primary
occupation in coastal areas?
A) Farming
B) Fishing
C) Mining
D) Factory work
Answer: B) Fishing
Explanation: Fishing is the main
livelihood in coastal states like Kerala, Maharashtra, Tamil Nadu, and West
Bengal.
32. What is a cooperative
society?
A) A government body
B) A large corporate company
C) A group of people running a business
together
D) A charity organization
Answer: C) A group of people
running a business together
Explanation: Cooperatives are businesses
owned by members who share profits and benefits, such as Amul (dairy
cooperative).
33. What is the largest
employment sector in India?
A) IT sector
B) Manufacturing
C) Agriculture
D) Transport
Answer: C) Agriculture
Explanation: Agriculture employs over 40%
of India’s workforce, making it the largest employment sector.
34. What is the role of
NABARD in rural livelihoods?
A) Provides health services
B) Funds rural infrastructure and
agriculture
C) Conducts elections
D) Builds highways
Answer: B) Funds rural
infrastructure and agriculture
Explanation: NABARD (National Bank for
Agriculture and Rural Development) provides loans and support for rural
development.
35. Which of these is an
example of organic farming?
A) Using chemical fertilizers
B) Using natural compost and
bio-pesticides
C) Large-scale farming for exports
D) Growing only genetically modified crops
Answer: B) Using natural
compost and bio-pesticides
Explanation: Organic farming avoids
synthetic chemicals, using natural fertilizers like cow dung and compost.
36. What is meant by 'Fair
Trade' products?
A) Goods sold at high prices
B) Products made by large corporations
C) Ethically sourced goods that ensure
fair wages to producers
D) Products sold in government stores
Answer: C) Ethically sourced
goods that ensure fair wages to producers
Explanation: Fair Trade ensures farmers
and workers get fair wages for their products.
37. Which is a government
initiative to promote startups in India?
A) Beti Bachao Beti Padhao
B) Startup India
C) Make in India
D) Digital India
Answer: B) Startup India
Explanation: Startup India provides
support to new businesses through loans, tax benefits, and funding.
38. Which state is the
largest producer of spices in India?
A) Gujarat
B) Kerala
C) Uttar Pradesh
D) Punjab
Answer: B) Kerala
Explanation: Kerala is famous for
producing black pepper, cardamom, cloves, and nutmeg.
39. What does FPO stand for
in agriculture?
A) Farmers Productivity Organization
B) Farmer Producer Organization
C) Food Processing Outlet
D) Fertilizer Production Order
Answer: B) Farmer Producer
Organization
Explanation: FPOs help farmers
collectively buy inputs, sell produce, and improve profits.
40. What is the main source
of employment for women in rural India?
A) IT sector
B) Teaching
C) Agriculture and handicrafts
D) Construction
Answer: C) Agriculture and
handicrafts
Explanation: Women are heavily involved in
farming, dairy work, and traditional handicrafts in rural India.
41. What is 'Handloom
Industry' known for?
A) Machine-made textiles
B) Handmade textiles using traditional
methods
C) Importing fabrics from foreign
countries
D) Selling raw cotton
Answer: B) Handmade textiles
using traditional methods
Explanation: Handloom weaving is a major
livelihood in states like West Bengal, Tamil Nadu, and Uttar Pradesh.
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