People around us do many kinds of work every day, and these activities are divided into two groups: economic and non-economic activities. Economic activities involve money — they are done in exchange for money or money's worth. Examples include a shopkeeper selling bags, a farmer selling produce, a lawyer earning a fee, a truck driver transporting goods, or workers in a factory. Non-economic activities do not generate income but are done out of feelings like love, care, gratitude and respect — such as parents cooking for the family, helping children with schoolwork, or caring for grandparents. People are paid for economic activities in different ways: a salary (a fixed regular monthly payment), a wage (payment for a specific period of work), a fee (for professional services), or payment in kind (a non-cash payment such as goods of equal value). Economic activities also create value addition — a carpenter who buys wood for ₹600 and sells a chair for ₹1,000 has added ₹400 of value through skill, time and effort. Non-economic activities, though not paid, generate great social value, seen in sevā (selfless service) like langars, and in community efforts such as the Swachh Bharat Abhiyan and Van Mahotsav.
Economic and non-economic activitiesWays people are paid (salary, wage, fee, payment in kind)Value additionThe importance of non-economic activitiesSevā and community participation
Key terms
Economic activity
An activity done in exchange for money or money's worth, such as selling goods or providing paid services.
Non-economic activity
An activity that does not generate income, done out of love, care, gratitude or respect.
Salary
A fixed, regular payment, usually monthly, made by an employer to an employee.
Wage
A payment made by an employer to a worker for a specific period of work.
Payment in kind
A non-cash payment, such as goods, received for work performed.
Value addition
The extra monetary value created by the skill, time and effort that transform something into a more valuable form.
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