Class 10

Sectors Of Indian Economy Class 10 Notes – Social Science Economics

 Sectors Of Indian Economy Class 10

(1) All activities that give an income in return are called economic activities. Example, people going for work in factories, banks, schools, etc.

(2) Economic activities can be classified into different sectors on the basis of nature of work.

  • Primary sector : Goods which are produced by exploiting natural resources come under the category of primary sector. This sector is also called agriculture and related sector, e.g. – cotton which is a natural product.
  • Secondary sector : Transformation of one good into another comes under the category of secondary sector. Manufacturing is one of the important components of this sector. Example : Transformation of sugarcane into sugar.
  • Tertiary sector : All production units producing services which help in the development of primary and secondary sectors come under the catego y of tertiary sector. This is also known as service sector.
  • Example – Services given by doctors, teacher , lawyers etc.

(3) These three sectors are highly interdependent on one another. This can be explained with the help of an example : Farmers buy goods such as tractors, pumpsets, fertilisers (manufacturing sector) to produce agricultural goods (primary sector). This shows dependence of primary sector n sec ndary sector. Now farmers want to sell their output. For this, they need transport facilities. It shows dependence of primary sector on tertiary sector.

(4) There are thousands of goods and services produced in an economy. We cannot add different types of goods in pr ctice. So the value of these goods and services should be used rather adding up the actual numbers. Comparison can be d ne among these three sectors on the basis of value of final goods and services produced.

(5) The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year and the sum of production in these sectors gives us gross domestic product (GDP) of a country.

(6) Tertiary sector has emerged as the largest sector because it helps in the development of primary and secondary sectors. Several services such as hospitals, banks, insurance companies, transport, educational institutions are the basic services which are required by primary and secondary sectors for their normal functioning.

(7) Organised sector covers those enterprises or places of work where the terms of employment are regular. They are registered by the government and have to follow its rules and regulations. Therefore people have job security.

(8) Unorganised sector covers small and scattered units which are largly outside the control of the government. There are rules and regulations but they are generally not being implemented by the unorganised sector. Employment is not secure in the unorganished sector.

(9) In unorganised sector protection and support is required for the workers for their economic and social development. Besides getting irregular and low paid work, they also face social discrimination.

(10) Public sector is the sector which is owned, controlled and managed by the government. Activities in the government sector are guided by the motive of soci l welfare and not to earn profit.

(11) In private sector ownership of production units is in the ands of private individuals. Activities in the private sector are mainly guided by the motive to earn profit. Example : TISCO and RIL.

(12) Employment is an activity from which a person ea ns the means of living, i.e. income in cash or in kind.

(13) Unemployment refers to a situation where the persons who are able to work and are willing to work, fail to secure work.

(14) Underemployment is a situation in which a worker gets work for less time than the time he can work. In other words, he remains unemployed for some months is a year or some hours everyday.

(15) There was a big change in the sha e of three sectors in G.D.P. (from 1973 to 2000) but data show that such similar shift has not been taken place in terms of employment.

Sectors Of Indian Economy – NCERT Book Questions

Q.1. Economy classified into organised and unorganised sectors is based on

  • economic activities
  • employment conditions
  • ownership
  • type of goods and services produced

Ans. (b)

Q.2. Which sector provides security of employment?

(a)  unorganised sector                                                (b) organised   ector

(c)  private sector                                                           (d) terti ry 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.

  • Due to improved methods of farming, productivity of agriculture sector increased. Therefore, more persons were aking up other activities like trading, transport, army etc.
  • Secondary sector became m st important sector for production and employment over a period of time. This was a shift from primary to secondary sector by the labour.
  • In developed countries a further shift from secondary sector to tertiary sector has been observed in the p st 100 years. Major portion of working population is engaged in the service sect r.

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.

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