1. Agriculture: Agriculture is the backbone of the village life. The progress of the village depends much on the progress of agriculture. In some villages, agriculture is carried on in a scientific manner. But the sub-division and fragmentation of landholdings has made scientific farming impossible in some places.
This has an adverse effect on production. Agriculture has been mechanised in some of the economically advanced countries of the world though not in India. 2. Cottage Industries and Crafts: Agriculture is normally associated with some home industries and crafts. Mat-making, basket-making, brick-making, carpentry, fishing, animal husbandry, tailoring, oil grinding, toy-making, pottery, spinning, weaving, embroidery, smithery, shoe-making and other crafts are carried on along with agriculture. 3. Small-Scale Industries: In some of the villages small-scale industries are associated with agriculture.
In some other villages small industries are the main means of livelihood of the people. Beedi industry, brick-making industry, mining industry, tile-making, agarbathi industry, and other types of industries have provided for people employment opportunities. In the western villages the farm economy is slowly becoming a money economy. There has developed a tendency among the Western farmers to give up their traditional economic functions. For example, in America, people are no more making butter and cheese for commercial purposes.
Crops are raised to sell for money which the farmers have to pay for purchasing other goods. The rapid growth of industrialisation has its own impact on the economic organisation of the villages. People are more attracted by the industrial occupations rather than the agricultural work. The farmers are also more interested in the commercial crops. There is a growing tendency among the rural people to depend more and more on the city and the factories for their daily needed commodities than on the locally produced goods.