Production is the key to the economic development of a country. Production can be agricultural, like cultivation of crops, or industrial, like manufacturing of goods. Palampur is an imaginary village and could be in any part of India.

Palampur is well connected by road to bigger neighbouring village called Raiganj and to the nearest town of Shahpur. Tongas, bullock carts, bogeys, motorcycles, jeeps, truck and tractors are all used to transport people and goods on this road.

Palampur is a small village inhabited by about 450 families. The 80 upper caste families in Palampur have pucca houses made of brick and cement plaster. The Dalits account for about 1/3 ^rd of the total population of Palampur and live in a corner of the village in small houses made of mud and straw. Most houses in Palampur have electricity connections and is used to run tube wells in the fields and support local businesses.

Palampur has two primary schools and one high school where the children can study. The residents of Palampur also have access to good health care services. Agriculture is the main occupation in Palampur.

The upper caste families own a majority of the cultivated land in Palampur. The other farmers either own small plots of land or are landless, and work as labourers in the fields of the wealthy land owners. People in Palampur are engaged in several non-farming activities as well like shop-keeping, dairy, small-scale manufacturing and transport services. Production activities require natural resources like land and water, man-made resources like raw material, human effort and intelligence, and, of course, money.