1. The non-farm activities of Palampur are dairy, small scale manufacturing and transport.
2. Nearly 25% of the people enegaged in non-farm activities. 

Non-farm activities are as follows:

• Dairy is the main non-farming activity of the people of Palampur. People have domesticated cows and buffaloes. The milk is sold to the people of Raiganj.
•  Some people are also engaged in small manufacturing units like spinning, weaving, leather making etc. Labourers are generally not hired for small manufacturing units.
•  Many shopkeepers have set up their own shops selling stationary items, toothpaste, candles etc. in the village. They buy various goods from the wholesalers in the towns.
•  Many people of the village of Palampur are also engaged in driving tractors, jeeps, bullock carts, rickshaws and trucks. They mostly transport goods from one place to another.

Answer:
The non-farm activities of Palampur are:
Dairy farming:
People feed their buffaloes with various kinds of grass, jowar, bajra that grows during the rainy season.
The milk is sold in nearby villages.
Some people have set up collection centres and chilling centres from where milk is transported to far away towns and cities.
Small-scale manufacturing:
Manufacturing in Palampur involves very simple production methods and are done on a small scale.
They are carried out mostly at home.
This is mostly done with the help of family labour. Labour is rarely hired.
Shopkeeping:
Shopkeepers buy various goods from the wholesale market in the cities and sell them in the village.
Small general stores in the village sell a wide range of items like rice, wheat, sugar, oil, biscuits, soap, batteries, candles, toothpaste, pens, pencils, notebooks, and even some clothes.
Some families whose houses are closer to the bus stand have used a part of the space to open small shops. They sell eatables here.
Transport:
Rickshawallahs, tongawallahs, jeep, tractor, truck drivers and people driving the traditional bullock carts and bogeys are the people in transport services.
They carry people and goods from one place to another and in return get paid for it.
The number of people in transport services have risen over the last several years.
Self-employed:
Some people have opened coaching institutes for various kinds of arts like computer training centres or stitching classes, etc. to obtain profit from a non-farm activity and train more and more people for better opportunities in their lives.