Economics

Non farming activities : All the economic activities which require little land are known as non farming production activities. Dairy, cottage and small scale industry shop etc are some of the non farm production activities.
(i) Dairy : Dairy is a common activity in many families of Palampur. People feed their buffalos on various kinds of grass and the jowar and bajra that grow during the kharif season. The milk is sold in Raiganj, the nearby large village. Two traders from Shahpur town have set up collection cum chilling centers at Raiganj from where the milk is transported to far away towns and cities.
(ii) Small scale manufacturing in Palampur : Less than fifty people are engaged in manufacturing in Palampur. Unlike the manufacturing that takes place in the big factories in the towns and cities, manufacturing in Palampur involves very simple production methods and are done on a small scale. They are carried out mostly at home or in the fields with the help of family labour.
(iii) The Shopkeepers of Palampur : People involved in trade (exchange of goods) are not many in Palampur. The traders of Palampur are shopkeepers who buy various goods from wholesale markets in the cities and sell them in the village. There are a few small general stores in the village selling a wide range of items like rice, wheat, sugar, tea, oil, biscuits, soap, toothpaste, batteries, candles, notebooks, pen pencil and even some cloth.
(iv) Transport : There are a variety of vehicles on the road connecting Palampur to Raiganj. Rickshawallahs, tongawallahs, jeep, tractor, truck drivers and people driving the traditional bullock cart and bogey are people in the transport services. They ferry people and goods from one place to another, and in return get paid for it.
Importance :
1. They can become the source of income for the farmers.
2. They can provide employment to landless workers.
3. They can help in establishing a market in the village.