ROUTERA

Chapter 2- Sectors Of The Indian Economy

Class 10th Social Science-Economics Points to Remember Chapter 2- Sectors Of The Indian Economy

Sectors of the Indian Economy

Economic Activities

  • All activities that provide income are called economic activities. Examples include people working in factories, banks, schools, etc.
  • Economic activities can be classified into different sectors based on the nature of work.

Primary Sector

  • Goods produced by exploiting natural resources fall under the primary sector. This sector is also known as agriculture and related sector. Example: Cotton, which is a natural product.

Secondary Sector

  • The secondary sector involves the transformation of one good into another, including manufacturing. Example: Transformation of sugarcane into sugar.

Tertiary Sector

  • The tertiary sector includes production units that provide services aiding the development of primary and secondary sectors. This sector is also known as the service sector. Examples include services provided by doctors, teachers, and lawyers.

Interdependence of Sectors

  • These sectors are highly interdependent. For instance, farmers rely on the secondary sector for goods like tractors and fertilisers and on the tertiary sector for transport facilities.

Measuring Sectoral Value

  • Comparison among sectors is based on the value of final goods and services produced rather than their quantities. The total production in each sector during a particular year contributes to the Gross Domestic Product (GDP) of a country.

Growth of Sectors

  • The tertiary sector has emerged as the largest due to its support in the development of primary and secondary sectors. Essential services such as hospitals, banks, insurance companies, transport, and educational institutions are vital for the functioning of primary and secondary sectors.

Organised vs Unorganised Sector

  • Organised Sector: Comprises enterprises with regular terms of employment, registered with the government, following rules and regulations, offering job security.
  • Unorganised Sector: Consists of small, scattered units largely outside government control. Employment is insecure, and rules are not effectively implemented.
  • Workers in the unorganised sector need protection and support for their economic and social development, as they often face irregular work and social discrimination.

Public and Private Sector

  • Public Sector: Owned, controlled, and managed by the government with a focus on social welfare rather than profit.
  • Private Sector: Ownership is in the hands of private individuals, with activities primarily driven by profit motives. Example: TISCO and RIL.

Employment and Unemployment

  • Employment: An activity that provides income, either in cash or kind.
  • Unemployment: A situation where individuals who are willing and able to work cannot find employment.
  • Underemployment: Occurs when a worker is employed for fewer hours than they are capable of working, or experiences significant periods of unemployment.

Sectoral Shift and Employment

  • Data from 1973 to 2000 shows significant shifts in the share of sectors in GDP, but similar changes have not occurred in terms of employment:
    • Secondary sector output increased 8 times, but employment rose only 2.5 times.
    • Tertiary sector output increased 11 times, while employment rose 3 times.
  • The government can enhance employment opportunities by improving infrastructure and services, and by setting up industries in semi-rural areas to process agricultural produce.

Mahatma Gandhi National Rural Employment Guarantee Programme (NREGA-2005)

  • This act guarantees 100 days of employment per year for those who are able and in need of work in all 604 districts of India. Only one person per family is entitled to this benefit.