The caste system of India based on the occupational pattern or nature of work. There is a direct relationship between economic activities and social hierarchical order. The occupation structure of the scheduled castes work force is mainly made up of the following components:
1. Landless agricultural labourers.
2. Cultivators with small land holding.
3. Small commodity producers or artisans.
4. Services particularly polluting or dirty services.
5. Industrial workers in leather training and shoe making etc. Industries to the scheduled castes. They account for 16% of the total population.
Distribution of the state level:
1. The highest concentration of the scheduled castes is found in the northern states of Uttar Pradesh and Bihar.
2. The states with medium level of concentration include Punjab, Rajasthan, M.P, Gujarat, Maharashtra, Orissa and West Bengal.

3. Low concentration is found in the states of Himachal Pradesh, Jammu and Kashmir, Assam, Andhra Pradesh, Karnataka and Kerala and in the north-east.
During the pre-independence period, there was a direct relationship between the social order and economics categories. Even today in spite of various reformation for their uplift, the scheduled caste people mostly are living in villages because of their economic activities related to the agricultural apparatus. About 90% of the scheduled caste population is living in rural areas.