NCERT Solutions For Class 9 Economics Chapter 1 – The Story Of Village Palampur

There is scope for development in India since more than 60% of our population is still in primary occupation, mainly farming. The NCERT Solutions for class 9 Economics chapter 1 takes the children on a virtual tour by creating a story and realistic characters to bring out the hard facts of the production process in a village. To dwell on production, we will consider a hypothetical village called Palampur in NCERT Solutions for Class 9 Economics Chapter 1. The main occupation of Palampur is farming grains and other food products. The rest of the people are involved in small scale industries like dairy, transport etc. This village is chosen as a model to make the students aware of the resource requirements, challenges of production and how it provides services to the villagers. The vicious cycle ends up widening the economic disparity inherent in our society. 

NCERT Solutions for Class 9 Social Science Economics Chapter 1 provides detailed and authentic answers to all the textbook questions. Through those, the students can understand, remember and retain answers to NCERT questions and thus, perform well in exams

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Key Topics Covered In NCERT Solutions For Class 9 Economics Chapter 1

The tabular representation below covers the topics under NCERT Solutions for Class 9 Economics Chapter 1

Exercise Topic
1.1 Introduction
1.2 Three prongs of production
1.2.1 Land of produce
1.2.2 Manpower requirement
1.2.3 Capital to run the production
1.3 Approach to improved farming
1.3.1 Importance of Electricity
1.3.2 Multi crop farming
1.3.3 Farming using modern methods
1.3.4 The downfall of the modernisation in farming
1.4 Land distribution in Palampur
1.5  Daily wages
1.6 Means of capital for small, medium and large farmers
1.7 Small scale industries and their growth
1.8 Non-farming activities
Others FAQ

A brief of the topics covered under NCERT Solutions for Class 9 Economics Chapter 1 is as under. 

1.1 Introduction

The NCERT Economics Class 9 Chapter 1 revolves around a typical Indian village called Palampur, where farming is the main occupation and secondary manufacturing is still underdeveloped. This village has done well for itself, having basic amenities like electricity, road, transport, health centre, schools and irrigation for farming. With the stage set, Chapter 1 takes us through the different production activities in Palampur, showcasing the need to preserve natural resources, the effects of modern techniques in farming, the imbalance in the demand and supply of labour, and non-farming activities being the need of the hour. 

1.2 Three prongs of production

There are three essentials of a production process as explained in the NCERT Solutions for Class 9 Economics Chapter 1:-

  • The land is where production activities like farming, manufacturing, forestry etc., occur. Natural resources like soil minerals, water, trees etc., are utilised from the land. Land soil is a perishable resource if not nurtured with care.
  • Human resources are the labour force which performs tasks like ploughing fields, cutting trees, harvesting crops, operating machinery and supervising the production activity.
  • Capital can be fixed assets like buildings, tools, machines, computers, generators, vehicles, etc. Or they can be operating expenses like raw materials, money, water and electricity, which are utilised in production.

1.3 Approach to improved farming

Through NCERT Solutions for Class 9 Economics Chapter 1 students learn that practically every production activity in Palampur required electricity, be it farming, factories, dairy or retail stores. It was an advantage for farmers to have electrical tube wells which could supply water more efficiently throughout the year, rather than pinning hopes on rainfall to irrigate their land. The farmers were able to do away with the age-old Persian wheel mechanism of physically drawing water from the wells.

With irrigation in place, the farmers looked at other challenges to maximise using the available cultivable land. That is how multiple cropping came to existence, as elaborated in the NCERT Solutions For Class 9 Economics Chapter 1. Different crops were grown in different seasons and various portions of land, making it possible to get at least 3 to 4 varieties of produce from the same ground over a year. 

Subsequently came the Green Revolution and its modern method of farming which introduced the farmers to high yielding seeds. This phenomenon tripled the production but, at the same time, demanded high quantities of water and increased usage of synthetic fertilisers and pesticides to protect the crop. The NCERT Solutions For Class 9 Economics Chapter 1 tells us about the pitfalls of this method. 

The rich harvests made farmers rich. They could now afford more machinery, synthetic fertilisers and pesticides for more produce. The influx of chemicals led to the depletion of soil fertility. We further learn in the NCERT Solutions For Class 9 Economics Chapter 1 that the non-biodegradable chemicals kill the beneficial bacteria and microorganisms in the soil and eventually get washed down to lakes and rivers, thus polluting the environment. Increased and continuous groundwater use affects the water table; another negative on the environment.

1.4 Land distribution in Palampur

As is the case in most villages in India, there is an unequal division of land in Palampur. Of the 450 families residing, one third are the poor Dalits and SC community, who do not own any cultivable land. They end up as farm labourers. About 240 families are the small and medium farmers who own about 2 hectares (1 hectare = 100 square metres) or lesser land. The remaining population of landlords and large farmers have above 2 hectares of land each. Land distribution is crucial as it gives us insight into each family's yield capability. From the NCERT Solutions For Class 9 Economics Chapter 1, we see that the less  privileged villagers borrow money at high interest to invest in their farms or make ends meet. Unable to clear debts in time, they end up as daily wage workers or even giving up their land to the big farmers or moneylenders.

1.5 Daily wages 

Medium and large farmers often hire labourers who come from landless families or the families of small farmers. They work for daily wages, in cash or kind (meals or food crops). The NCERT Solutions For Class 9 Economics Chapter 1  mentions that in March 2019, the government had directed that a daily wage labourer is entitled to a minimum of Rs. 300/- per day. But due to pressures of clearing their debts, the landless families, small farmers and sometimes the medium farmers end up working at much lower wages than their entitlement.

1.6 Means of capital for small, medium and large farmers

Usually, the surplus (after consumption for their own family and some kept for the future) from the harvest is sold in nearby markets to generate cash. The raw material, tools and machinery for the next round of production are purchased. The NCERT Solutions For Class 9 Economics Chapter 1 talks about how large farmers can reinvest easily and deposit money in their bank accounts. Medium farmers may not have enough to start an account in a bank, as their surplus is limited. On the other hand, small farmers and landless families are literally in a ‘hand to mouth’ situation and end up borrowing more and more money. 

1.7 Small scale industries and their growth

The poor wages and unemployment often drives the labour toward big towns or cities seeking better opportunities. In NCERT Solutions For Class 9 Economics Chapter 1, we see that people are engaged in other employment like dairy farming, shopkeeping, transport, small scale manufacturing industries and computer centres. Some of these do not require heavy investments, and the operating costs are also not very high. These activities help the low-income family with their daily needs and not depend totally on farming.

1.8 Role of government 

The NCERT Solutions For Class 9 Economics Chapter 1 brings out the role of the government's help to uplift the economically backward section of the village. Budding entrepreneurs should have access to loans at lower interest rates. The government needs to support non-farming activities by providing necessary infrastructure like markets, roads, transport facilities etc. Education and essential health care facilities are another impetus that the governing bodies should look into for the community's economic development. 

NCERT Solutions For Class 9 Economics Chapter 1 Exercises &  Solutions

NCERT Solutions provide detailed and authentic answers to all the textbook questions. Through those, the students can understand, remember and retain answers to NCERT questions and thus, perform well in exams

The practical exercises offered in the NCERT Economics Class 9 Chapter 1 make learning more interesting for the students. The team at Extramarks believes in this theory to impart knowledge to the students and make them strong in the subject so that each student performs very well in their CBSE examinations. Students may refer to the essential questions and answers given in the link below.

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Key Features of NCERT Solutions For Class 9 Economics Chapter 1

The NCERT Solutions For Class 9 Economics Chapter 1 explains the production activities through an example of a typical village in India. Students learn about the integrals of production, i.e. land, labour and capital. This chapter explains electricity requirements, measures to increase output, the economic disparity, exploitation of the labour force and non-farming methods as an alternative occupation. 

NCERT Class 9 Economics Chapter 1 has been put together by experienced teachers and experts from Extramarks to include actual production and economic development aspects in a village. There are sufficient examples, tables and illustrations to make every student understand the subject. The team at Extramarks have ensured that the syllabus of NCERT Solutions For Class 9 Economics Chapter 1 is as per NCERT guidelines. 

Q.1 Every village in India is surveyed once in ten years during the Census and some of details are presented in the following format. Fill up the following based on information on Palampur.

a. Location:

b. Total Area of the Village

c. Land use (in hectares)

Cultivated Land Land not available for cultivation (Area covering dwellings, roads, ponds, grazing ground)
Irrigated Unirrigated
26 hectares

d. Facilities

Electricity Supply
Nearest Town


  1. Location: It is a hypothetical village which resembles a village of the western part of the state of Uttar Pradesh. It is located 3 kilometers from a big village Raiganj. Also, the nearest town is Shahpur.
  2. Total Area of the Village: 226 hectares
  3. Land use (in hectares):
Cultivated Land Land not available for cultivation (Area covering dwellings, roads, ponds, grazing ground)
Irrigated Unirrigated
200 hectares 0 26 hectares
  1. Facilities
Educational 2 primary schools and 1 high school
Medical 1 primary health center run by government and 1 private dispensary
Market Raiganj and Shahpur
Electricity Supply Most of the houses have electric connections. Electricity is being used in fields for irrigation and in small businesses.
Communication An all weather road connects Palampur to Raiganj and Shahpur. Different kinds of transport are commuting on this road like bullock carts, tongas, bogeys, motorcycles, jeeps, tractors, trucks, etc.
Nearest Town Shahpur

Q.2 Modern farming methods require more inputs which are manufactured in industry. Do you agree?


Yes, I agree that modern farming methods require more inputs which are manufactured in industry. For example:

  • Modern farming methods require HYV seeds, insecticides, pesticides, chemical fertilisers in huge quantity which are produced in industries.
  • For ploughing and harvesting, farmers are using tractors and threshers which are manufactured in industries.
  • For irrigational purposes farmers use electric-run tube-well equipments and water pumps that also are manufactured in industries.

Q.3 How did the spread of electricity help farmers in Palampur?


Electricity reached early to Palampur which transformed the life of farmers of Palampur in following manners:

  • Earlier farmers were using Persian wheels to draw water from wells and irrigate field. With the advent of electric run tube-wells farmers can irrigate much larger areas of land more effectively and efficiently.
  • Farmers were dependent on rainfall for agricultural activities, now with the advent of electric run irrigational equipments farmers can grow two crops on a piece of land during a year.
  • It also helped farmers in setting up small businesses where the machines run on electricity.

Q.4 Is it important to increase the area under irrigation? Why?


Yes, it is important to increase the area under irrigation for the following reasons:

  • Population is increasing and thereby the need to increase food production is imperative. But there is constraint to increase land under cultivation, thus the only alternative to increase productivity is to increase area under irrigation.
  • Rainfall is unevenly distributed and in India most of the farmers depend on monsoon for agriculture. It shows if India receives less rainfall, then production will be low.
  • Overtime farmers are adopting modern methods of agriculture like using HYV seeds, multiple cropping, crop rotations, etc. that command good irrigational facilities.

Q.5 Construct a table on the distribution of land among the 450 families of Palampur.


Families Distribution of Land
150 Families Own no land for cultivation
240 Families Own small plots of land less than 2 hectares in size
60 Families Own large plots of land more than 2 hectares in size or for few families land holding is extending over 10 hectares

Q.6 Why are the wages for farm labourers in Palampur less than minimum wages?


The wages for farm labourers in Palampur are lower than the wages for farm labourers set by the government due to intense competition. There is heavy competition among the farmers for work in Palampur, so farmers get ready to work for lower wages.

Q.7 In your region, talk to two labourers. Choose either farm labourers or labourers working at construction sites. What wages do they get? Are they paid in cash or kind? Do they get work regularly? Are they in debt?


In our region, I talked to two labourers named Rama and Krishna. They are brothers. They are working on constructional sites.

They get ` 300 daily which is paid in cash and lunch in the afternoon which is in kind.

They do not get work regularly because after the completion of one project they have to find another option. Secondly, there is huge competition in getting work. When they are not able to compete, they remain unemployed.

They are in debt because they had borrowed money from money lender for construction of their house in their home town. Since, they do not have regular source of earnings, they have to borrow to meet their daily expenses.

Q.8 What are the different ways of increasing production on the same piece of land? Use example to explain.


The following ways can be followed to increase production on the same piece of land:

  • Multiple Cropping: To grow more than one crop on the same piece of land during the year is known as multiple cropping. It is the most common way to increase production. For example, farmers in Palampur grow at least two crops and many farmers also grow third crop every year from past fifteen to twenty years.
  • Adoption of modern methods: By adopting modern agricultural methods like use of HYV seeds, farmers can increase their production. They can use insecticide, pesticide, tubewells, etc. to increase yield per acre. For example farmers of Punjab, Haryana, Western UP, are increasingly adopting these methods.

Q.9 Describe the work of a farmer with 1 hectare of land.


A farmer who owns 1 hectare of land for farming is called as subsistence farmer. The size of 1 hectare of land is very less and not suitable for the cultivation with modern equipments. On this land, farmer practices traditional methods of agriculture. Since the size of land is small and the application of new methods of irrigation, use of insecticides, pesticides, is limited. With this production farmer may not be able to manage his family in the whole year. For the survival of his family, he has to work on rich farmer’s field or has to do some other work. He may also have to take loan to buy inputs for cultivation and pay hefty interest rates. For the repayment of loan he may be put to distress.

Q.10 How do the medium and large farmers obtain capital for farming? How is it different from the small farmers?


Medium and large farmers use their own savings to obtain capital for farming. They have accumulated this savings from farming.

In contrast to the medium and large farmers, small farmers borrow money from large farmers or village money lenders or traders who supply various inputs for cultivation. With this borrowing small farmers arrange capital for farming. They pay hefty interest on such borrowings. Sometime, they face difficult situations to repay loan.

Q.11 On what terms did Savita get a loan from Tajpal Singh? Would Savita’s condition be different if she could get a loan from the bank at a low rate of interest?


Savita is a small farmer as she owns 1 hectare of land. She decides to cultivate wheat. As she does not have money, she decides to borrow from Tejpal, a large farmer. On the following terms she got money from Tejpal Singh:

Savita borrowed money at an interest rate of 24 % for four months, which is a hefty interest rate.

She promised to work on Tejpal’s Singh field as a farm labourer during harvest season at Rs 35 per day. This wage is quite low as compared to minimum wages for a farm labourer set by the government i.e. Rs 115.

Banks, self-help groups and cooperatives charge very low interest rates as compared to the interest rate charged by Tejpal Singh, a money lender. So, if Savita had taken loan from bank, she would have been paying very low interest rate and she would have not been forced to work as bonded labour. Repayment of loan could have been easier for her and her condition would have been far better.

Q.12 Talk to some old residents in your region and write a short report on the changes in irrigation and changes in production methods during the last 30 years. (Optional)


After having word with two old residents Sitaraman and Harvinder Singh in our region, I came to know that there is huge change in irrigation and production methods.

They told us, earlier Persian wheels were used to draw water from wells but now with the advent of electric run tube-wells, farmers can irrigate much larger areas of land more effectively and efficiently.

In farming, traditional methods like ox plough, wooden threshers, were used for ploughing and threshing respectively. These methods were time consuming and difficult.

Earlier farmers were using ordinary seeds, cow dung and leaves manure. Now the farmers are using HYV seeds, insecticide, pesticides, etc. which are produced in factory.

Q.13 What are the non-farm production activities taking place in your region? Make a short list.


Following non-farming activities are taking place in our region:

(1) Dairying: Dairying is a common activity in our region. People have opened dairy and indulge in sales and purchase of dairy products.

(2) Small scale manufacturing: Most of the people are engaged in manufacturing. Manufacturing in our region involves very simple production methods or modern production methods. Small production methods are being practiced on a small scale. It is done with the help of family members or hired. It is generally carried at home or at small manufacturing unit. Modern production methods are found at few places in our region.

(3) Trading: People are involved in trading. The traders in our region are shopkeepers who buy various goods from the wholesale markets located in cities and sell them in our area. There are small general stores in the village selling a wide range of items like rice, wheat, sugar, tea, oil, biscuits, soaps etc. Few families whose houses are close to the bus stand are using a part of space to open small shops.

(4) Other activities: People are indulged as medical professionals, lawyers, rickshaw pullers, teachers, government employees, etc.

Q.14 What can be done so that more non-farm production activities can be started in villages?


The following methods can be done to start more non-farm production activities in villages:

  • Institutional loans at low interest rates should be provided to villagers to start non-farm activities like for opening a new shop. Borrowing procedure should be made borrower friendly.
  • Government should provide education and trainings facilities to villagers. These will act as foundation for new set ups for e.g. training for setting up computer training institutes.
  • Good marketing channels can be developed in villages. These channels help in marketing handicrafts, artisans work, etc.
  • Basic infrastructure like road, electricity, communication, commutation facilities needs to be improved.
  • Industries should be invited in villages to create employment opportunities.

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FAQs (Frequently Asked Questions)
1. What are the possible questions from NCERT Solutions For Class 9 Economics Chapter 1 should the students prepare for the CBSE examination?

Students may note the following questions from NCERT Solutions For Class 9 Economics Chapter 1.

  1. What is the organisation of production?
  2. Elaborate on multiple crop farming and modern farming methods; what are their pros and cons?
  3. How does the unequal division of land affect the small and medium farmers?
  4. What measures should we take to encourage non-farming activities?

2. How do the NCERT Solutions for Class 9 Economics Chapter 1 help understand the concept of production in rural India?

The team in Extramarks have included many hypothetical scenarios, diagrams, pictures, tables and illustrations to explain each topic in this chapter. Suggestions given in NCERT Solutions for Class 9 Economics Chapter 1 for possible field assignments and projects by experts at Extramarks will further invoke the interest of the subject in the students and help them understand concepts easily. This way, students have the edge over their peer group and will excel in their studies and examinations.

3. Is the syllabus covered in NCERT Solutions for Class 9 Economics Chapter 1 enough to perform well in the CBSE examination?

The team at Extramarks has prepared the NCERT Solutions for class 9 Economics Chapter 1 syllabus from the CBSE examination point of view  and in line with NCERT guidelines. Children should study and revise the subject before the examination. They can take up the suggested field activities to improve their knowledge. To help them further, Extramarks have a questions and solutions section at the end of this chapter that will prepare them well for the CBSE examinations.