Sectors of Indian Economy
Class 10th Social Science- Sectors of Indian Economy
SECTORS OF THE INDIAN ECONOMY
NCERT TEXTBOOK QUESTIONS
Q.1. Economy classified into organised and unorganised sectors is based on
(a) economic activities
(b) employment conditions
(c) ownership
(d) type of goods and services
produced
Ans.
(b)
Q.2. Which sector provides security of employment?
(a) unorganised sector (b)
organised sector
(c) private sector (d)
tertiary sector
Ans.
(b)
Q.3. What does the history of developed countries indicate about the shifts that
have taken place between sectors?
Ans.
(i)
Initially, primary sector was the main economic activity.
(ii) Due to improved methods
of farming, productivity of agriculture sector increased.
Therefore, more persons were
taking up other activities like trading, transport, army etc.
(iii) Secondary sector became
most important sector for production and employment over a
period of time. This was a
shift from primary to secondary sector by the labour.
(iv) In developed countries a
further shift from secondary sector to tertiary sector has been
observed in the past 100
years. Major portion of working population is engaged in the
service sector.
In conclusion, in developed
economies, tertiary sector has gained an important position.
Q.4. For each of the sectors that we come across in this chapter why should one
focus on
employment and GDP? Could there be other issues which should be examined?
Discuss.
Ans.
There was a big change in the share of three sectors in GDP (from 1973 to 2000)
but data show
that a similar shift has not
taken place in terms of employment.
In secondary sector output
went up by 8 times but in terms of employment it rose up by
only 2.5 times.
In tertiary sector output
went up 11 times whereas employment rose up 3 times.
So we see that people are
shifting from primary sector to secondary and tertiary sectors.
This is an indication of
progressing on the path of development.
Q.5. Study the diagram given below
and answer the questions that follow :
(i) Which was the largest
producing sector in 1973? Give one reason.
(ii) Which was the largest
producing sector in 2003? What was it contribution to the GDP?
(iii) What was the main reason
for the highest increase in GDP in this sector in comparism
to other sectors.
Ans.
(i)
Primary sector was the largest producing sector in 1973 because primary sector
has 45%
share in GDP because majority
of population was involved in agriculture due to lack of
economic development.
(ii) Tertiary sector was the
largest producing sector in 2003 as its contribution to GDP was
around 51%.
(iii) Main reason for the
highest increase in GDP in tertiary sector was that due to economic
development, income of people
increases. It results in more demand for services like
tourism, shipping, private
schools and hospitals etc.
Q.6. The table below shows the estimated number of workers in India in the
organised and
unorganised sectors. Read the table carefully. Fill the missing data and answer
the
questions that follow.
Workers in Different Sectors (in Millions)
Sector
Organised
Unorganised
Total
Primary
2
240
242
Secondary
9
54
63
Tertiary
17
76
93
Total
28
370
398
Total in Percentage
7%
93%
100%
(i) Which is the most
important sector that provides most jobs to the people?
(ii) What is the number of
persons engaged in the unorganised sector?
(iii) Why is the unorganised sector more
important? Give one reason.
(iv) Which is the most
important organised sector? Give one reason.
Ans.
(i) The primary sector is the
most important sector that provides most jobs to the people.
(ii) The number of person
engaged in the unorganised sector is 370 million.
(iii) Unorganised sector is
more important because it provides employment to a far greater
number of people, especially
from lower strata of society, when compared to those
employed by the organised
sector.
(iv) Tertiary sector is the
most important organised sector because it employs more people
when compared to primary and
secondary sectors. In addition, it is the backbone which
further boosts the growth of
primary and secondary sectors. For example, infrastructure
and communication help in
smooth flow of goods and services across the country.
Questions In The Exercise
Q.1. GDP is the total money value of the following produced during a particular
year.
(a) All goods and services
(b) All the final goods and
services
(c) All intermediate goods and
services
(d) All intermediate and final
goods and services
Ans.
(b)
Q.2. Fill in the blanks using correct option given in bracket.
(i) Employment in service
sector ______________ increased to the same extent as
production. (has/has not)
(ii) Workers in the
______________ sectors do not produce goods. (tertiary/agriculture)
(iii) Most of the workers in
the ______________ sector enjoy job security. (organised/
unorganised)
(iv) A ______________
proportion of labourers in India are working in the unorganised sector.
(large/small)
(v) Cotton is a ______________
product and cloth is a ____________ product. (natural/
manufactured)
(vi) The activities in
primary, secondary and tertiary sectors are ______________
(independent/interdependent)
Ans.
(i)
has not (ii) tertiary (iii) Organised
(iv) large (v) natural,
manufactured (vi) interdependent
Q.3. Match the following :
Problems faced by farming sector
Some possible measures
(i) Unirrigated land
(a) Setting up agrobased mills
(ii) Fluctuations in income
(b) Cooperative marketing societies
(iii) Debt burden
(c) Procurement of foodgrains by government
(iv) No jobs in the off-season
(d) Construction of canals by the government.
(v) Compelled to sell their
grains to the local
(e) Banks to provide credit with low interest
traders soon after harvest
Ans.
(i) Unirrigated land
(d) Construction of canals by the government
(ii) Low prices for crops
(c) Procurement of foodgrains by government
(iii) Debt burden
(e) Banks to provide credit with low interest
(iv) No jobs in the off season
(a) setting up agrobased mills
(v) Compelled to sell their
grain to the
local traders soon after
harvest
(b) cooperative marketing societies
Q.4. Find the odd one out and say why.
(i) Guide, dhobi, tailor,
potter
(ii) Teacher, doctor,
vegetable vendor, beautician
(iii) Postman, courier,
deliverer, soldier, police constable
(iv) MTNL, Indian Railways,
Air India, SAHARA Airline, All India Radio
Ans.
(i) Guide is the odd one
because he is often educated while others are often uneducated.
(ii) Vegetable vendor is the
odd one, because he is often illiterate while others are literate.
(iii) Soldier is the odd one,
because he belongs to military department while others belong to
civil departments.
(iv) Indian Railways are the
odd one because they are based on the land while others are linked
with the atomsphere.
Q.5. A research scholar looked at the working people in the city of Surat and
found the
following
Place of work
Nature of employment
Percent of working people
In offices and factories
registered
Organised
15
with the government
Own shops, office, clinics in
market
Organised
15
places with formal license
People working on the street,
construction
Unorganised
20
workers, domestic workers
Working in small workshops
usually
Unorganised
50
not registered with the
government
Complete the table. What is the proportion of workers in the unorganised sector
in this
city (in percent) ?
Ans.
In
the organised sector there is 15 + 15 = 30% people.
In the unorganised sector
there are 20 + 50 = 70% people.
Q.6. “Tertiary sector is not playing any significant role in the development of
Indian
economy.” Do you agree? Give reasons in support of you answer.
Ans.
No,
tertiary sector is playing an important role in the development of Indian
economy. It helps
primary and secondary sectors
to develop by providing services such as transportation, communication, banking,
infrastracture etc. This leads to more employment opportunities.
Further, this enhances the
income level. With the rise in income people start demanding more
services like tourism,
shopping, eating out, private hospitals etc. Certain new services based
on information technology have
been rising rapidly.
As we know, all the three
sectors are dependent on one another. Development of one sector
leads to the development of
other sectors.
Q.7. Explain the objectives of implementing the National Rural Employment
Guarantee Act
or NREGA .
Ans.
The
main objective of this act is to provide employment to one person per family for
at least
100 days in a year. If
government fails to provide employment, it will give unemployment
allowance to the people.
In 2005, Government made a law
implementing the Right to Work in 200 districts in India
under this act. Now it has
been extended to whole of the country.
Q.8. How are the activities in the economy classified on the basis of employment
conditions?
Ans.
Activities in the economy are classified under the following categories on the
basis of
employment conditions.
Primary Activities :
Activities concerned with agriculture and allied sectors are known as
primary activities. It
produces goods by exploiting natural resources such as land, water,
forests, mines etc. Forestry,
fishing, mining, are the examples of primary activities.
Secondary activities :
These activities are concerned with manufacturing sector, where it
converts one type of commodity
into another. For example – manufacturing of cotton cloth
from cotton yarn, sugar from
sugarcane and furniture from wood etc.
Tertiary activities :
These activities are mainly concerned with the services like banking
insurance, transport, trade,
communication etc. Activities of tertiary sector are very useful and
help in the development of
primary and secondary sectors of the economy.
Q.9. Distinguish between open unemployment and disguised unemployment.
Ans. Open unemployment and disguised employment :
In agriculture sector a large group
of
landless labourers seek wage
employment on farms. But many people fail to get employment
and hence remain unemployed.
Since they openly search for employment and their
unemployment is not hidden,
this is called open unemployment.
Disguised unemployment
is
a situation in which more persons are employed on a job than
are optimally required. If a
part of labour force is withdrawn and the total production remains
unchanged, this withdrawn
labour is known as disguised unemployment.
Q.10. The following table gives the GDP in Rupees (crores) in the three sectors.
Year
Primary
Secondary
Tertiary
1950
80,000
19,000
39,000
2000
3,14,000
2,80,000
5,55,000
(i) Calculate the share of
each sector in GDP for 1950 and 2000.
(ii) Show the data as bar
diagrams similar to Graph 2.
(iii) What conclusions can we draw from bar graph
?
(ii) Conclusion : (a) Share of
primary sector in GDP has decreased.
(b) Share of secondary sector
in GDP has increased.
(c) Share of tertiary sector in GDP has
increased.
Q.11. What do you understand by disguised unemployment? Explain with the help of
an
example.
Ans.
Disguised unemployment is a situation where the number of workers engaged in a
job is much
more than required. If some of
them are withdrawn from the job, the total production will not
fall. It means that marginal
productivity of such workers is zero.
Let us understand it with the
help of an example – Laxmi owning about 2 hectares of land is
growing crops. All the five
members of the family work on the plot throughout the year.
Suppose they produce 20
quintals of food grains. Now suppose instead of 5 only 3 members
work next year and the output
is still 20 quintals. It means that three members were enough
to work. The other two members are then said to
be disguisedly unemployed.
MULTIPLE CHOICE QUESTIONS
Q.1. Who carries economic activities?
(a) individuals (b) firms (c)
government (d) all the above
Ans.
(d)
Q.2. Which sector has the lowest share in the employment in 2000?
(a) primary sector (b)
secondary sector (c) tertiary sector (d) none of the above
Ans.
(b)
Q.3. The economy is classified into public and private sectors on the basis of :
(a) employment conditions (b)
the nature of economic activity
(c) ownership of enterprises
(d) number of workers employed in the enterprise
Ans.
(c)
Q.4. Which sector includes the units producing services?
(a) primary sector (b)
secondary sector (c) tertiary sector (d) all the above
Ans.
(c)
Q.5. Which sector converts goods into goods?
(a) primary sector (b)
secondary sector (c) unorganized sector (d) organized sector
Ans.
(b)
Q.6. Percentage share of employment is highest in
(a) primary sector (b)
secondary sector (c) tertiary sector (d) public sector
Ans.
(a)
Q.7. Primary sector is related to
(a) agriculture (b) dairy,
forestry (c) fishing, mining (d) all the above
Ans.
(d)
Q.8. In which sector activities are not guided by profit motive?
(a) organized sector (b)
public sector
(c) private sector (d)
unorganized sector
Ans.
(b)
Q.9. In which type of unemployment more people are employed than required?
(a) seasonal unemployment (b)
disguised unemployment
(c) educated unemployment (d) all the above
Ans.
(b)
Q.10. In terms of GDP the share of tertiary sector in 2003 is
(a) between 20 to 30% (b)
between 30 to 40% (c) between 50 to 60% (d) 70%
Ans.
(c)
Q.11. Workers in this sector do not produce goods :
(a) tertiary sector (b)
secondary sector (c) primary sector (d) none of the above
Ans.
(a)
Q.12. Manufacturing units in unorganized sector are :
(a) not subject to government
regulations (b) subject to government regulations
(c) subject to central bank’s
regulations (d) none of the above
Ans.
(a)
Q.13. Production of a commodity through exploitation of natural resources is an
activity in the
(a) primary sector (b)
secondary sector
(c) tertiary sector (d)
Information Technology sector
Ans.
(a)
Q.14. Manufacturing sector is associated with
(a) primary sector (b)
secondary sector (c) tertiary sector (d) private sector
Ans.
(b)
Q.15. The unorganized sector accounted for the following percentage of workforce
in India in
the year 1999-2000 :
(a) 63% (b) 73% (c) 83% (d)
93%
Ans.
(d)
Q.16. Underemployment occurs when people
(a) do not want to work
(b) are working in a lazy
manner
(c) get employment below their
capability level
(d) paid less than minimum
wage fixed by government
Ans.
(c)
Q.17. Information and communication technology is associated with
(a) primary sector (b)
secondary sector (c) tertiary sector (d) none of the above
Ans.
(c)
Q.18. As per NREGA 2005 (National Rural Employment Guarantee Act 2005) the
number of
days of employment guaranteed by government is
(a) 100 days (b) 80 days (c)
150 days (d) 120 days
Ans.
(a)
PREVIOUS YEARS’ QUESTIONS
Q.1. The service sector includes activities such as
(a) agriculture, dairy,
fishing and forestry (b) making sugar, gur and bricks
(c) transport, communication
and banking (d) none of these
Ans.
(c)
Q.2. Choose the correct meaning of organised sector.
(a) It covers those
enterprises where the terms of employment are not regular.
(b) It is outside the control
of the government.
(c) Jobs are not regular.
(d) It provides low salaries.
Ans.
(a)
Q.3. On which of the following basis, the sectors are classified into public and
private sector?
(a) Employment conditions
(b) The nature of economic
activity
(c) Ownership of enterprises
(d) Number of workers employed
in an enterprise
Ans.
(c)
Q.4. In which one of the following sectors, the production of a commodity is
mostly through
the natural processes?
(a) Primary (b) Secondary (c)
Tertiary (d) Service sector
Ans.
(a)
Q.5. National Rural Employment Guarantee Act was implemented in which one of the
following years ?
(a) 2004 (b) 2008 (c) 2005 (d)
2009
Ans.
(c)
Q.6. Which of the following types of activities are covered in the secondary
sector?
(a) It generates services rather than
goods.
(b) Natural products are
changed through manufacturing.
(c) Goods are produced by
exploiting natural resources.
(d) It includes agriculture,
forestry and dairy.
Ans.
(b)
Q.7. Public enterprises are owned by:
(a) Individual owners (b)
Government
(c) Both government and
individual (d) None of the above
Ans.
(b)
Q.8. Disguised Unemployment means a situation where people are:
(a) Unemployed (b) Employed
but earning less salary
(c) Employed but productivity
is nil (d) Unemployed for a short period of time
Ans.
(c)
Q.9. Which one of the following economic activities is not in the tertiary
sector?
(a) Banking (b) Bee keeping
(c) Teaching (d) Working in a
call centre
Ans.
(b)
Q.10. Which one of the following defines GDP ?
(a) All final goods and services produced in a
country in a year
(b) All final and intermediate
goods produced in a country in a year
(c) Money value of all final
goods and services produced in a domestic territory in a year.
(d) None of the above.
Ans.
(c)
Q.11. The motive of public sector enterprises is :
(a) Profit making (b)
Entertainment
(c) Social welfare and
security (d) None of the above
Ans.
(c)
Q.12. Which of the following Acts would not apply to a company like TISCO ?
(a) Minimum Wages Act (b) National Rural
Employment Guarantee Act
(c) Factories Act (d) Payment
of Gratuity Act
Ans.
(b)
Q.13. Workers in agricultural sector are [2010 (T-1)]
(a) underemployed (b) over
employed (c) unemployed (d) None of these
Ans.
(a)
Q.14. Which of the following is not applicable for a worker, who works in the
organized sector?
(a) She gets a regular salary
at the end of the month
(b) She is not paid for leave
(c) She gets medical allowance
(d) She got an appointment
letter stating the terms and conditions of work when she
joins work.
Ans.
(b)
Q.15. Which one of the following activities does not belong to the primary
sector?
(a) Agriculture (b) Dairy (c)
Mining (d) Weaving
Ans.
(d)
Q.16. Which of the following is also known as disguised employment?
(a) Over-employment (b)
Factory employment
(c) Under-employment (d)
Unemployment
Ans.
(c)
Q.17. Which of the following activities does not fall in the tertiary sector?
(a) Banking (b) Communication
(c) Manufacturing (d) Transport
Ans.
(c)
Q.18. Agriculture, dairy farming are activities belonging to which of the
following sectors?
(a) Primary (b) Secondary
(c) Tertiary (d) Scientific
technology
Ans.
(a)
Q.19. What is meant by GDP ?
(a) Gross Dairy Product (b) Gross Domestic
Product
(c) Great Development Project
(d) Great Domestic Product
Ans.
(b)
Q.20. Which of the following activities is not the activity of Primary Sector?
(a) Milking (b) Fishing (c)
Making of sugar (d) Farming
Ans.
(c)
Q.21. Which of the following statements is true in respect of Public Sector?
(a) Big companies own most of
the assets
(b) Government owns the assets
(c) A group of people owns
most of the assets
(d) An individual owns most of
the assets
Ans.
(b)
Q.22. Which of the following is not an activity of unorganised sector?
(a) teacher taking a class in
Kendriya Vidyalaya
(b) a nurse working in a
Government hospital
(c) a farmer irrigating his
field
(d) a clerk working in the
post office
Ans.
(c)
Q.23. On which of the following economic basis the sectors are classified into
organised and
unorganised sectors?
(a) The nature of economic
activity (b) Ownership of enterprises
(c) Employment conditions (d)
Number of workers employed in the enterprise
Ans.
(c)
Q.24. Which of the following economic activity does not come under the primary
sector?
(a) Fishing (b) Farming (c)
Mining (d) Banking
Ans.
(d)
Q.25. Which of the following agencies estimates the Gross Domestic Product (GDP)
in India?
(a) All the state governments
(b) An autonomous body
(c) A ministry of the Union
Government (d) None of the above
Ans.
(c)
Q.26. Which one of the following countries has the largest size of illiterate
population in the
world?
(a) India (b) Japan (c) France
(d) Germany
Ans.
(a)
Q.27. The money value of all final goods and services produced within a country
during a
particular year is called
(a) Gross domestic product (b)
Net domestic product
(c) National product (d)
Production of secondary sector
Ans.
(a)
Q.28. Which one of the following was the largest producing sector in 1973?
(a) Secondary (b) Tertiary (c)
Primary (d) All the above
Ans.
(c)
Q.29. Identify the feature of the unorganised sector.
(a) Rules and regulations are
followed (b) Workers enjoy security of employment
(c) Employment is not secure
(d) It follows some formal
processes and procedures
Ans.
(c)
Q.30. In terms of G.D.P., the share of tertiary sector in 2003 was
(a) between 20 to 30% (b)
between 30 to 40%
(c) between 50 to 60% (d)
above 70%
Ans.
(c)
SHORT ANSWER TYPE QUESTIONS
Q.1. Using examples from your area, compare and contrast the activities and
functions of the
private and public sectors.
Ans. Public Sector :
There are the organisations which directly or indirectly come under the control
of government, like MTNL,
railways, Indian Airlines etc.
Private Sector :
In
private sector organisations the ownership is in private hands and they run
these organisations with the
motive of earning profits. BSES and Sahara Airlines are the
examples of private sector.
Q.2. Explain how public sector contributes to the economic development of a
nation.
Ans.
There are some industries whose development is absolutely essential for the
growth of
economy. Such industries
include power, transport, petroleum, irrigation, iron and steel,
fertilisers, heavy industries
etc. These industries require large investments which may be
beyond the means of private
entrepreneurs and are not sufficiently profitable for private
sectors. Hence all such
activities which are essential for the country’s development are carried
into by the public sector.
Q.3. The workers in the unorganised sector need protection on the following
issues : wages,
safety and health. Explain with examples.
Ans.
In
unorganised sectors workers are exploited by the private individuals because
their aim is to
earn more profit. They are not
concerned with the safety and health of the employees. They
also pay low wages to increase
their profits. In such a type of organisation working conditions
are not good. So the
protection of their rights is necessary. They can take the help of labour
laws and courts.
PREVIOUS YEARS’ QUESTIONS
Q.1. Explain the difference in employment condition in organised and unorganised
sectors?
Ans.
Organised Sector
Unorganised Sector
(i) Working conditions are
regulated on
(i) There are rules but they are
the basis of government rules
and
not strictly implemented for the
regulations.
benefit of workers.
(ii) Workers have job
security.
(ii) Worker have no job security.
(iii) Workers get weekly
holidays, medical
(iii) There are no such benefits at work.
facilities, retirement benefits, etc.
Q.2. Explain the objectives of implementing the NREGA 2005.
Ans.
(i)
To provide work to those who are able and are in need of work, in rural areas.
(ii) They are to be provided
guaranteed 100 days of employment in a year.
(iii) If government fails in
its duty to provide employment, it will give unemployment
allowance to the worker.
(iv) The types of work that
would in future help to increase agricultural production will be
given preference under the
Act.
Q.3. Explain the primary, secondary and tertiary sectors by giving examples of
each.
Ans. Primary Sector :-
All
those economic activities that are undertaken by directly using natural
resources are included in
primary sector. For example, mining, forestry, fishing, poultry etc.
Secondary sector :-
It
cover activities in which natural products are changed into other forms
through ways of manufacturing
that we generally associate with industrial activities. For
example, after obtaining a
crop, say cotton, we need machines to change it into yarn and cloth.
Tertiary Sector :-
These are the activities that help in the development of the primary and
secondary sectors. These
activities, by themselves do not produce any good but they are an aid
or a support for the
production process. For example, any good produced in primary or
secondary sector need to be
transported to the market. That will be done by tertiary sector. It
is also called service sector.
Q.4. Describe the role played by National Rural Employment Guarantee Act in
improving the
employment situation in India.
Ans.
The
National Rural Employment Guarantee Act, which is now called Mahatma Gandhi
National Rural Employment
Guarantee Act or ‘MNREGA’, has improved employment
situation in rural India in
the following ways —
(i) As this Act provides
minimum 100 days of work guarantee to a member of each rural
family, it means no family
will be without the opportunity of work although only for 100
days.
(ii) By providing jobs some
assets are being created in rural areas which are further creating
jobs like tree plantation,
pool construction, etc.
(iii) MNREGA has checked mass
rural migration to urban centres for jobs and other livelihood
opportunities.
Q.5. ‘Economic activities, though grouped into three different categories, are
highly
interdependent.’ - Discuss.
Ans.
All
Economic activities are interdependent as no activity can sustain itself alone –
Economics activities in all
sectors are interdependent. Primary sector provides raw materials for
secondary sector. For example,
tobacco is needed for cigarette industry, sugarcane is needed for
sugar industry. To provide
transportation, banking facilities, management to the primary and
secondary sectors, tertiary
sector is needed.
Q.6. Write any three ways to increase employment opportunities for people in
India.
Ans.
Employment opportunities for people can be increased in the following ways :–
(a) In villages more
irrigational facilities should be provided so that farmers can grow more
crops and they would be engaged thoughout the
year.
(b) Agro-based industries
should be set up in villages so that farmers could get good prices
for their products. For
example, sugar mills.
(c) People should be given
easy loan facilities which would help them to start their own
enterprises.
Q.7. Describe any three problems faced by workers in the unorganised sector.
Ans.
The
workers of unorganised sector face following problems :–
(a) They are not paid
according to government rules. They are underpaid.
(b) They are not given other
facilities like holidays, medical facility, gratuity, etc.
(c) They can be asked to leave
without any reason. There is no job security. Workers are hired
as and when needed and then
asked to leave job without any compensation.
Q.8. Explain the term GDP. Why are only ‘final goods and services’ counted in
GDP?
Ans.
GDP
means Gross Domestic Product of a country. It is the value of all final goods
and services
produced within a country
during a particular year.
Only the final goods and
services are counted in the GDP. For example, if wheat is sold at Rs.
8 per kg. to floor mill, which
sells flour to Biscuit company which then uses flour to make
biscuits. Then the value of
biscuits would be counted, not the value of flour. The value of
biscuits contains the value of
intermediatary goods their production.
Q.9. Explain what is meant by disguised unemployment? Give examples from rural
and urban
areas where disguised unemployment exists.
Ans.
Disguised employment is a hidden unemployment. It means a person seems to be
obing a job
but actually he is not
required there. If he is taken out of the job, no difference in the
productivity would be felt.
In rural areas all family
members work on the agricultural field but all the work can be done
only by one person alone. Rest
are just engaged.
In urban areas, casual workers
do petty jobs. They are not employed adequately.
Q.10. Service sector in India employs different kinds of people. Explain with
example.
Ans.
Service sector employ different kinds of people.
There are a very large number
of workers engaged in services such as small shopkeepers,
repair persons, transport
persons etc. These people barely manage to earn a living. services like
management, banking, finance,
marketing, insurance, transport and communication are
included in the tertiary
sector. So, obviously different kinds of people are engaged in the
service sector or tertiary
sector.
Q.11. Why is agriculture an activity of unorganised sector in India?
Ans.
Agriculture is a sector which is not regulated by the government because land
belongs to an
individual. Hence farmer or
whoever owns the land hires workers as and when required. So
government cannot intervene in
hiring or regulating work conditions. Agriculture is fully
dependent on natural factors, and these factors
are not within control of any human being or
government. Moreover, most of
the fields are small and scattered being cultivated by small and
marginal farmers. It is just
not possible to put agriculture in organised sector.
Q.12. Differentiate between the public sector and private sector by giving
examples.
Ans.
In
the public sector, the government owns most of the assets and provides all the
services. In
the private sector, ownership
of assets and delivery of services is in the hands of private
individuals or companies.
Railways and Post Office is an example of the public sector whereas
companies like Tata Iron and
Steel Company Limited (TISCO) and Reliance Industries Limited
(RIL) are in private sector.
Q.13. Suggest any three ways to create more employment avenues in Urban sector.
Ans.
(i)
Industrialisation – Developing private sector industries by giving more
incentives
(ii) Creating Special Economic
Zones in urban areas.
(iii) Laying more emphasis on
export of goods.
(iv) Developing new sectors
like tourism-promoting regional craft industry.
(v) Expanding IT sector.
Q.14. How can the workers in the unorganised sector be protected? Explain.
Ans.
In
the rural areas, the unorganised sector mostly comprises of landless labourers,
small and
marginal farmers, artisans,
etc. These people need to be supported through adequate facility for
timely delivery of seeds,
agricultural inputs, credit, storage facilities and marketing outlets. In
the urban areas, unorganised
sector comprises mainly workers in small-scale industry, casual
workers in trade, transport
and construction, etc. Small scale industries need government
support for procuring raw
material and marketing of output. The casual workers need to be
protected by law. A separate
body of rules and regulations need to be made to manage activities
in the unorganised sector.
LONG ANSWER TYPE QUESTIONS
Q.1. Give a few examples of public sector activities and explain why the
government has taken
them up.
Ans.
Construction of roads, bridges, railways, harbours, generating electricity,
providing irrigation
through dams, health,
education etc. are a few examples of public sector activities
Government has taken up these
activities because these activities require a huge amount of
investment which is beyond the
capacity of the private sector and several things needed by the
society as a whole which the
private sector will not provide at a reasonable cost. Even if they
do provide these things, they
would charge a high rate for their use.
Let us further understand this
with the help of an example. Selling electricity at a price which
covers the full cost of
generation may push up the cost of production in industries. Many units,
specially small scale units,
might have to shut down. Government here steps in by producing
and supplying electricity at
rates which these industries can afford. So the government has to
bear a part of the cost.
Q.1. What steps should be taken to create more employment? Explain.
Ans.
Following steps can be taken to create more employment :—
(i) Increase in irrigation
facilities :- Without irrigation only a single crop is grown in most
agricultural fields. It means
less working opportunities, but if irrigation is provided two
or three crops can be grown on
the same field. So more people will be employed.
(ii) Improved Roads and
Transportation :- If village roads are better built, good
transportation facilities are
provided then, surplus produce could be sold in city market.
This would fetch more income.
(iii) Provide them easy
loan :- If people are provided easy bank loans then they could start
small business which will make them
self-dependent.
Q.3. Explain how public sector contributes to the economic development of India.
Ans.
Public sector is an important sector for the development of economy.
(i) There are several things
needed by the society as a whole but which the private sector will
not provide at a reasonable
cost. As huge sum of amount is needed which private sector
can not afford, so public
sector is needed there. For example, building bridges, railway etc.
(ii) There are several basic
activities which government has to support, for example, selling
electricity at lower cost,
providing driking water at affordable rate etc.
(iii) There are some
activities which government has to perform like providing health and
education facilities. So public sector is needed.
Q.5. Explain four features of an organised sector.
Ans.
Four features of organised sectors :–
(i) Workers have job security.
(ii) Government rules are
followed properly in terms of employment.
(iii) Post retirement
facilities are provided.
(iv) Workers get paid
holidays, medical facilities, bouns, gratuity, etc.
Q.6. In which sector are most of the people employed and why?
Ans.
Most of the workers are employed in Primary Sector, because :—
(i) Not enough jobs have been
created in the secondary and tertiary sectors.
(ii) More than half of the
workers in the country are working in the primary sector although
Primary sector contributes
only one third of G.D.P.
Q.7. What do you mean by tertiary sector? Explain the role of this sector in the
Indian economy.
Ans.
The
economic activities that support primary and secondary sectors are included in
tertiary
sector. This includes
transport facilities, banking facilities, medical facilities, education
facilities etc. This sector is
very important for an economy.
It is going to be more
important for India because due to rapid industrialisation several
activities are needed like,
transport, banking, marketing, insurance etc. Skilled educated class
is required for all sector
which has to be provided by education sector. When income level
increase people demand more
services like catering, tourism etc.
Several new services like
information technology have come up which are providing
great employment
opportunities.
Q.8. Why is the tertiary sector growing so rapidly in India? Explain it with
four reasons.
Ans.
Tertiary sector is growing rapidly because:
(i)
India’s economy is growing fast. Several services like hospital, educational
institutions,
post, telegraph, police,
courts, municipality, transport, banks, insurance etc are needed.
(ii)
Development of agriculture and industry lead to the development of services such
as
transport, trade, storage etc,
so these would be in greater demand.
(iii)
As
income level increases certain sections of people start demanding many more
services
like eating out, tourism,
shopping, private hospital etc.
(iv)
Certain new services have emerged like information and communication technology
which
have become important.
Q.9. What is an organised sector? Describe its working conditions.
Ans. Organised Sector :
This sector covers those enterprises or places of work where the terms of
employment are regular. They
are registered by the goverrnment and have to follow the rules
and regulations. There people
have job security.
Working Conditions :
(i) Fixed working hours an
organised sector : In organised sector working hours are fixed.
If employee is working after
the fixed time, he would be paid extra money for it.
(ii) Wage structure divided
under various heads : The wage structure is divided under
various heads like provident
fund, gratuity and various allowances. Employees get pension
after retirement in organised
sector.
Q.10.
Why is the tertiary sector becoming more important than other sectors in India?
Give
four reasons.
Ans.
Tertiary sector has become important in India due to
(i) Basic services like
hospitals, education, post and telegraph, courts etc. are the
responsibility of the
government.
(ii) Demand for services such
as transport, trade, storage has increased with the development
of primary and secondary
sectors.
(iii) Demand for tourism,
shopping, private schools, private hospitals etc. increased with the
increase in the level of
income.
(iv) Rapid growth of service
sector also benefitted from external demand such as software
industry and call centre
services.
Q.11. What is the significance of secondary sector in Indian economy? How does
it help in the
economic development of the country?
Ans.
After independence secondary sector or manufacturing sector became the most
important in
total production and
employment. In the past 30 years, service sector has taken a lead in terms
of total production and
employment. However, tertiary sector is largely dependent on
secondary sector. Goods
produced need to be sold, marketed and distributed. Banking activities
and insurance sector get a
boost by an expanding secondary sector. All sector are inter-related
and expansion or shrinking of
one sector has effects on other sectors too. As of now primary
sector is the leading employer
followed by tertiary and secondary sectors in that order. In terms
of share in GDP tertiary
sector is the leading sector followed by primary and secondary sectors.
Q.12. Explain how a shift has taken place between sectors in developed
countries?
Ans.
About more than 100 years ago new methods of manufacturing and technological
revolution
took place. People who worked
in farms began working in factories in large numbers in new
urban centres. Secondary
sector gradually became the most important in terms of production
and employment. Hence, over a
time, a shift had taken place from primary to secondary sector.
In the past 100 years there
has been a further shift from secondary to tertiary sector in
developed countries. The
service sector has become the most important in terms of total
production. Most of the
working people are currently employed in the service sector. This is