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A village economy has a little bit of each sector prevalent in it. The most widespread sector in the village is the primary sector. The primary sector is the sector that obtains the resources in their raw form, mostly from natural sources which are then used to produce a good. The major activities that are included in the primary sector are the ones that are directly dependent on the environment such as Land, water and vegetation. Most of the people are engaged in agriculture. Agriculture is one of the most important activities in the primary sector. It provides livelihood to a large number of people of the village. Apart from agriculture, a few other activities such as fishing, forestry, hunting and gathering, and mining are also carried out in a significant number, However one major problem that is faced In The villages is the issue of underemployment and disguised employment. Underemployment means the number of people that work on the agricultural field is less than the number of people that are actually required. On the other hand, disguised employment means a large number of people are working on the land even though it is not required.
The government has also been successful to some extent to solve the problems of the village economy. For example seeds and fertilizers are now available at a subsidized price. The government has also agreed to increase the funds allocated for the facilities of irrigation. The other two sectors of secondary sector and tertiary sector have not been very successful or widespread in the village areas.
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