Republic of India Livelihoods in intermediate towns

Table of Contents

1. Introduction: 1

1.2: Non-farm Economy in Contemporary Bihar: 2

1.3: Study and the Research Questions: 3

2. Historical Context of the Changing Rural Economy of Bihar 5

2.1: Introduction: 5

2.2: Broad trends in the non-farm economy of India: 7

2.3: Literature on non-farm Economy: 7

2.4: Social and Economic Change and the Demographics of Rural-Urban: 10

2.5: Trends in the non-farm economy of Bihar: 12

2.6: Beyond Agriculture: Diversification and Migration: 13

3. The Fieldwork: 15

3.1: Field-sites: 16

3.2: Data Collection: 18

3.3: Operationalizing ‘Non-farm’ Activity: 20

4. Changing Social Profile of the Settlements: 21

4.1: Castes and Communities: 21

4.2: Agriculture and Its Social Framework in the two Settlements: 23

4.3: Decline of “Semi-feudal” Patriarch: 25

5. Mapping the Non-farm Economy: 29

5.1: Listing the Activities: 29

5.2: The Survey: 31

5.3: Nature of Ownership of Non-farm Activity: 32

5.4: How Old Are They?: 33

5.5: Communities and Non-farm Occupations: 33

5.6: Women in the Non-Farm Economy: 37

6. Migration and the Non-farm Economy: 42

6.1: The Context: 42

6.2: Remittance Economy: 43

6.3: Experience of Migration: 45

6.4: Migration and Networks: 48

6.5: Migration, Women and Agriculture: 49

7. Mobility and the Non Farm Economy: 54

7.1. Where Do They Come From?: 54

8. Motivations Sources of Funding and Income: 56

8.1: Motivations: 56

8.2. Investments and Sources of Funding: 58

8.3: Incomes from Non-farm Activity: 60

9. Growing Non-farm Economy, Persisting Rural and Urban Aspirations 61

9.1: Absent Urban?: 61

9.2: Work and Economic Life: 62

9.3: Education: 64

9.4: Private Education: 65

9.5: Caste, Education and Aspirations: 67

10. Social Dynamics of Rural Non-farm Economy: Concluding Comments 70

11. Policy Implications of

Appendices 73

Appendix 1: Comprehensive List of Non-Farm Activities and corresponding practicing caste and religion based communities. 73

Appendix 2: Descriptive Accounts of Non-farm Occupations 75

2.1: Drivery and Transport: 75

2.1.1: Rajnagar Railway station, Satghara and Autorickshaw stand, Bhagwatipur: 75

2.1.2: Taxi stand, Madhubani, towards Bhagwatipur: 76

2.1.3: Madhubani Bus Stand: 77

2.2. Traditional Occupations: 78

2.2.1: Bangle making and selling, Lehri community, Bhagwatipur: 78

2.2.2: Madhubani Paintings: 79

2.2.3: Jewelry and Money Lending: 80

2.2.4: Carpenter (Badhai): 82

2.2.5: Tailoring (Darzi): 83

2.2.6. Barbers (Nai): 83

2.2.7: Butcher (Kasai): 85

2.2.8: Cobbler (Mochi): 86

2.2.9: Paan Sellers (Barai): 86

2.2.10: Washerman (Dhobi): 86

2.2.11: Puffed Rice and Sattu (Bhuja and Sattu: Halwai): 87

2.2.12: Bidi Makers: 87

2.3: New activities in the NFE: 88

2.3.1: Garment Retail Shops: 88

2.3.2: Construction Material and Hardware: 88

2.3.3: Items for storage: 89

2.3.4: Mobile Sale and Repair Shops: 89

2.3.5: Medicine Store: 91

2.3.6: Digital photography studios: 92

2.3.7: Cyber cafes and photo-state: 92

2.3.8: Computer Service Centre: 92

2.3.9: Tent house: 93

2.3.10: Beauty Parlour, Bhagwatipur: 93

2.3.11: Small vendors, Bhagwatipur: 94

2.3.12: Boutique: 95

Appendix 3 Case Studies: Community and Caste based settlements 97

3.1: Muslim Fakir Tola, Satghara: 97

3.2: Muslim Tola, Bhagwatipur: 98

3.3: Mallah Tola, Bhagwatipur: 99

3.4: Badhai Tola, Bhagwatipur: 101

3.5: Brahmin Tola, Nahar (Bhagwatipur): 102

3.6: Dom Tola, Satghara: 103

Appendix 4: 106

4.1: MGNREGA and Public Welfare Programmes: 106

4.2: Banks and Financial Institutions: 107

Appendix 5: Settlement Schedule: 108

Appendix 6: Non-farm Occupation / Activity Profile Schedule: 113

References: 115

List of Tables:
Table 1: Non-Farm Workers in Bihar and India (in Millions) 3

Table 2: Age Profile of the Respondents 19

Table 3: Castes and Communities in Satghara and Bhagwatipur 22

Table 4: Classification of non-farm activities 30

Table 5: Social Profile of Respondents in the Sample-survey 32

Table 6: Nature of Non-Farm Activity 32

Table 7: Building Ownership and Caste 33

Table 8: Year of Starting Non-farm Activity 34

Table 9: NFE Categories and Caste / Communities 35

Table 10: Social Profile of Respondents in the Sample-survey 36

Table 11: Gender and Participation in Non-Farm Activity 37

Table 12: Gender and Monthly Income 40

Table 13: Gender and Caste 41

Table 14: Migration Status across Social Groups among the Respondents 45

Table 15: Age and Migration 47

Table 16: Age and Migrant's Destination 48

Table 17: Occupational Mobility across two generations 54

Table 18: Father's Occupation across social categories 55

Table 19: Caste Category and Motivation for Starting Current Activity 57

Table 20: Amount Invested at the time of establishment 58

Table 21: Caste and Source of Funding for NFE 59

Table 22: Caste and Monthly Income 60

Table 23: Parental Preference of Occupation for their Children 63

Table 24: Education Qualifications of Different Categories of Respondents 68

List of Boxes
Box 1: Village-wise List of non-farm activities 29

Box 2: Beauty Parlour and Female Enterprise in Bhagwatipur 39

Box 3: Parvati Progressive School 67

Box 4: Case Study: In Transition – The Story of handlooms 89