Sectors of the Indian Economy class 10 Chapter 2 – Economics Notes, ppt, mcq, questions and answers – there are three sectors in the Indian economy, they are: primary economy, secondary economy, and tertiary economy. In terms of operations, the Indian economy is divided into organized and unorganized. While for ownership, it is divided into the public sector and the private sector.
Sectors of the Indian economy class 10 summary
The three sectors of the economy are the primary, secondary, and tertiary sectors in one way or another all these sectors are interrelated and dependent on each other. The primary sector is about the primary activities it’s an ujnorganized sector and here the activities are performed by directly exploiting the natural resources the primary sector provides the raw material to the secondary sector for manufacturing goods and services. the secondary sector is also known as the industrial sector as it does the manufacturing of finished goods and products. The last tertiary sector also known as the service sector provides various services and is very very helpful for both sectors.
For example The primary sector do agriculture, where they grow crops so for selling the crops transportation, is needed to take to the market then this service sector will help similarly with the secondary sector too. so all three sectors are very important for us and for our economic growth.
Primary Sector – Sectors of the Indian economy
The primary sector in India is the sector which is largely dependant on the availability of natural resources in order to manufacture the goods and also to execute various processes. The services in this sector are entirely dependant on the availability of the natural resources in order to keep the day-to-day operations running.
As we have the clear idea of this sector is, the best example to discuss in this sector is the agriculture sector. The other examples in this sector include fishing and forestry, but agriculture accounts for the largest in this sector.
One of the major problem that this sector faces is the underemployment and the disguised employment. Underemployment accounts for the workers not working to the best of their capabilities while the latter accounts for the workers not working to their true potential.
As a solution to the problems, the state, as well as the national government, can increase the funds for the irrigation facilities and provide loans for buying high-quality seeds and fertilizers.
Secondary Sector – Sectors of the Indian economy
In terms of value added to the products and services, this sector is the best sector. The major examples that fall under this category are transportation and manufacturing.
Both these sectors end product is the consumption by the people. This sector is responsible for the employment of almost 14 percent of the entire workforce currently working in India. The secondary sector also contributes to almost 28 percent of the share of GDP. This sector is the backbone of Indian economy and there are more development and growth in the near future.
Tertiary Sector – Sectors of the Indian economy
This sector contributes the largest in terms of share in GDP in India. The sector is also the service sector and is important when you consider the development of the other two sectors. Like the previous sector, this sector also adds the value to the products. This sector is responsible for employing 23 percentage of the workforce out of the total workforce currently working in India.
The example of this sector is all service sectors which IT services, consulting, etc. This sector contributes to almost 59 percent of the total share of GDP. The main problem that this sector is that the jobs which involve lower salaries do not attract much employment. And this remains the future dilemma as India is looking for double-digit growth in the near future.
In terms of operations: Organized and Unorganized sector
How to Protect Workers in Unorganised Sector
There is a need for protection and support of the workers in the unorganised sector. Here are a few points which will help in doing so.
- The government can fix the minimum wages rate and working hours.
- The government can provide cheap loans to self-employed people.
- Government can provide cheap and affordable basic services like education, health, food to these workers.
- The government can frame new laws which can provide provision for overtime, paid leave, leave due to sickness, etc.
In terms of ownership: Public and Private Sectors
| Public Sector | Private Sector |
| 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 or post office is an example of the public sector. | Companies like Tata Iron and Steel Company Limited (TISCO) or Reliance Industries Limited (RIL) are privately owned companies. |
| The purpose of the public sector is not just to earn profits. Its main aim is public welfare. | Activities in the private sector are guided by the motive to earn profits. |
Responsibilities of Government – Sectors of the Indian economy
There are a large number of activities which are the primary responsibility of the government. Here, we have listed a few of them:
- Government raises money through taxes and other ways to meet expenses on the services rendered by it.
- Governments have to undertake heavy spending such as the construction of roads, bridges, railways, harbours, generating electricity, providing irrigation through dams, etc. Also, it has to ensure that these facilities are available for everyone.
- There are some activities, which the government has to support to encourage the private sector to continue their production or business.
- The government in India buys wheat and rice from farmers at a ‘fair price’ and sells at a lower price to consumers through ration shops. In this way, it supports both farmers and consumers.
- Running proper schools and providing quality education, health and education facilities for all are some of the duties of the government.
- Government also needs to pay attention to aspects of human development such as availability of safe drinking water, housing facilities for the poor and food and nutrition, taking care of the poorest and most ignored regions of the country.
Conclusion – Sectors of the Indian economy
Sectors of Indian economy notes, ppt, mcq, questions and answers – The service sector is growing in India as this sector employs different types of people with different skill sets. While on one hand there are only a few services which require the involvement of highly educated and skilled workers, on the other hand are the self-employed people, who, due to lack of opportunity to work, are trying to manage their living.
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Sectors of the Indian economy class 10 notes:
What is Primary Sector?
Ans. All the activities that are undertaken directly using natural resources fall under the primary sector. The industries are engaged in the production or extraction of natural resources such as ores, minerals, crops, and oil.
What is the Secondary Sector?
The Secondary sector covers all the activities in which the natural products are processed through the ways of manufacturing that we associate with industrial activity. The product of this sector are not produced by the nature but are produced by some manufacturing is necessary.
Why is the Secondary sector also called an ‘Industrial Sector’?
The Secondary sector is called the industrial sector. Since this sector is gradually associated with the different kinds of industries that came up, that’s why it’s called as industrial sector. The secondary sector includes all those industries which produce the finished usable goods and products.
Which activities are categorized under the Tertiary sector?
The activities that are categorized under or help in the development of the primary and secondary sectors are called as tertiary activities. This activity by themselves do not produce goods but they are support for the production process.
What changes have bought about the primary sector of India?
Ans. In the primary sector, the method of farming changed and the agriculture sector began to prosper, it produces a lot more food than before. Many people could now take up other activities like transporters, army or administration, etc.
What changes can be seen in the Secondary sector of India?
In the secondary sector, many new methods of manufacturing were introduced, and factories came up and started expanding. People from rural areas migrated to work in factories and demands for manufactured finished products or goods have also increased.
What development has taken place in the Tertiary Sector of India?
The Tertiary sector has developed a lot it has become the most important sector in terms of production. Most people want to be employed in this sector. The service sector is growing a lot nowadays.
Which sector has grown the most over thirty years?
The tertiary sector is the sector that has grown the most. The tertiary sector has become the most important sector in terms of production. Most of the working people are also employed in the service sector.
Which Basic Services are provided by the government in a country?
In any country, the very basic services provided by the government are Hospitals, Educational Institutions, Post and telegraph services, Police Stations, courts, Village administrative offices, Municipal Corporations, Defence, Transport, Banks, Insurance companies, etc. It is the responsibility of the government to provide these basic services.
How does government support both farmers and consumers?
The government of India buys wheat and rice from farmers at a fair price. This they store in their godowns and sell at a lower price to the consumers through ration shops. Here the government has to bear some of the cost so, in this way the government supports both the farmer and the consumers.
Questions and Answers – Sectors of the Indian economy
1. Fill in the blanks using the correct option given in the bracket:
- Employment in the service sector _________ increased to the same extent as production. (has / has not)
- Workers in the _________ sector do not produce goods. (tertiary / agricultural)
- Most of the workers in the _________ sector enjoy job security. (organised / unorganised)
- A _________ proportion of labourers in India are working in the unorganised sector. (large / small)
- Cotton is a _________ product and cloth is a _________ product. [natural /manufactured]
- The activities in primary, secondary and tertiary sectors are_________ [independent / interdependent]
Answer
- has not
- tertiary
- organised
- large
- natural and manufactured
- interdependent
2. Choose the most appropriate answer.
a. The sectors are classified into public and private sector on the basis of:
- employment conditions
- the nature of economic activity
- ownership of enterprises
- number of workers employed in the enterprise
Answer: 3. ownership of enterprises
b. Production of a commodity, mostly through the natural process, is an activity in _________ sector.
- primary
- secondary
- tertiary
- information technology
Answer: 1. primary
c. GDP is the total value of _________ produced during a particular year.
- all goods and services
- all final goods and services
- intermediate goods and services
- all intermediate and final goods and services
Answer: 2. all final goods and services
d. In terms of GDP the share of tertiary sector in 2013-14 is between _________ per cent.
- 20 to 30
- 30 to 40
- 50 to 60
- 60 to 70
Answer: 3. 50 to 60
Questions and Answers – Sectors of the Indian economy
Match the following
| Problems faced by farming sector | Some possible measures |
| 1. Unirrigated land | (a) Setting up agro-based mills |
| 2. Low prices for crops | (b) Cooperative marketing societies |
| 3. Debt burden | (c) Procurement of food grains by government |
| 4. No job in the off season | (d) Construction of canals by the government |
| 5. Compelled to sell their grains to the local traders soon after harvest | (e) Banks to provide credit with low interest |
Answer:
| Problems faced by farming sector | Some possible measures |
| 1. Unirrigated land | (d) Construction of canals by the government |
| 2. Low prices for crops | (c) Procurement of food grains by government |
| 3. Debt burden | (e) Banks to provide credit with low interest |
| 4. No job in the off season | (a) Setting up agro-based mills |
| 5. Compelled to sell their grains to the local traders soon after harvest | (b) Cooperative marketing societies |
Questions and Answers – Sectors of the Indian economy
4. Find the odd one out and say why.
(i) Tourist guide, dhobi, tailor, potter
Answer: Tourist Guide is the odd one out because he or she is appointed by the Government Department but tailor, dhobi and potter own their private work.
(ii) Teacher, doctor, vegetable vendor, lawyer
Answer: The Vegetable vendor is the odd one out because he works in the primary sector, while jobs of teacher, lawyer and doctor come under the tertiary sector.
(iii) Postman, cobbler, soldier, police constable
Answer: Cobbler is the odd one out because he works in the private sector while the postman, soldier and police constable work for the public sector or the organised sector.
(iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio
Answer: Jet Airways is the odd one out because it is owned by a private company and MTNL, Indian Railways, Air India and All India Radio are owned by the Government of India
5. A research scholar looked at the working people in the city of Surat and found the following.
| Place of Work | Nature of Employment | Percentage of working People |
| In offices and factories registered with the government | Organised | 15 |
| Own shops, office, clinics inmarketplaces with formal license | 15 | |
| People working on the street,construction workers, domestic workers | 20 | |
| Working in small workshopsusually not registered with the government |
Questions and Answers – Sectors of the Indian economy
Complete the table. What is the percentage of workers in the unorganised sector in this city?
Answer:
| Place of Work | Nature of Employment | Percentage of working People |
| In offices and factories registered with the government | Organised | 15 |
| Own shops, office, clinics inmarketplaces with formal license | Organised | 15 |
| People working on the street,construction workers, domestic workers | Unorganised | 20 |
| Working in small workshopsusually not registered with the government | Unorganised | 50 |
The percentage of workers in the unorganised sector are 70% (50+20)
6. Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.
Answer: The classification of economic activities into primary, secondary and tertiary is useful, as it helps to classify the different occupations that are taken up by the people in the country and how much each sector contributes to the growth of the country. It is also important because it helps in asserting that which sector contributes the most in the GDP and which sector has the scope to employ more people and increase the National Income.
Questions and Answers
7. For each of the sectors that we came across in this chapter why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.
Answer: Employment and GDP are two of the most important factors in the development of a country. Employment and GDP are used to calculate the overall productivity and National income of a country. If a country has a high employment rate, its GDP, National Income and per capita income will automatically increase. Hence, these are the two things which have been given major emphasis in this chapter.
Other issues which should be examined are as follows:
- Health care facilities
- Education
- Poverty
- Food Production
- Nourishment
8. Make a long list of all kinds of work that you find adults around you doing for a living. In what way can you classify them? Explain your choice.
Answer: The activities performed by human beings for a living are classified into three sectors: primary, secondary and tertiary. When we see people around us, we can classify their employment sector in either of the three classifications. Activities like cleaning, agriculture, selling vegetables are examples of the primary sector. Manufacturing of goods is an example of the secondary sector. Teaching, mining, banking, transportation are all examples of the tertiary sector.
Questions and Answers
9. How is the tertiary sector different from other sectors? Illustrate with a few examples.
Answer: The are activities that help in the development of the primary and secondary sectors are called tertiary activities. These activities are different from the primary and secondary sector activities. These activities, by themselves, do not produce a good but they are an aid or support for the production process. For example, goods that are produced in the primary or secondary sector would need to be transported by trucks or trains and then sold in wholesale and retail shops. These transportation facilities and shopkeepers come under the tertiary sector. They do not produce goods but play a very important role in selling and bringing those goods to the market.
10. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Answer: In rural areas, where agriculture is the main source of income, this kind of unemployment can be seen often. If a piece of land requires only three people to work on it and instead five people are working on it, then the two extra people are said to be in a situation of disguised unemployment.
In urban areas, disguised unemployment is seen when painters, plumbers, electricians are unable to find work on a daily basis and work way less than their potential.
Questions and Answers
11. Distinguish between open unemployment and disguised unemployment.
Answer: Open unemployment is when a person is willing to work, is educated but is unable to get a job and work. This kind of unemployment is visible. On the other hand, disguised unemployment is when a person is apparently working but is made to work less than his or her potential. This kind of employment is quite evident in villages where people working in farms consider themselves employed but are actually working less than their potential.
12.“Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.
Answer: No, this is not correct. The tertiary sector is playing a significant role in the development of the Indian Economy. In the year 2003, the tertiary sector replaced the primary sector as the most producing sector in the country. Reasons:
- The primary and secondary sectors can only flourish if the tertiary sector is there to support them.
- The tertiary sector adds up a lot to the National income of the country.
- Education, which is the basis of everything, comes under the tertiary sector. A person working as a teacher comes under the tertiary sector.
- This sector provides the maximum employment opportunities to the people in the country.
Questions and Answers
13. Service sector in India employs two different kinds of people. Who are these?
Answer: Service sector in India employs two different types of people. These people are:
- Highly Skilled labour, which includes teachers, bankers, IT officials, etc. (permanent employment).
- Less Skilled Labour, which includes vendors, electricians, plumber, etc. (temporary employment).
14. Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
Answer: The unorganised sector is characterised by small and scattered units, which are largely outside the control of the government. There are rules and regulations but these are not followed. Jobs here are low paid and not regular. Hence, it is correct to say that workers are exploited in the unorganised sector because more work is taken from them in comparison to what they are paid. They have no provisions or extra pay for overtime and no medical benefits. The biggest problem in working in this sector is that there is no job security.
Questions and Answers
15. How are the activities in the economy classified on the basis of employment conditions?
Answer: On the basis of the employment conditions, the economy can be classified into two sectors:
- Organised Sector: Enterprises registered under the Government of India, who have an employee-friendly environment and are provided with various facilities including high wages.
- Unorganised Sector: Small and scattered units which are temporary. The employees in this sector are paid less.
16. Compare the employment conditions prevailing in the organised and unorganised sectors.
Answer: In the organised sector, the employees are given higher wages, medical facilities, a healthy working environment and their jobs are permanent. They are not liable to look for a new source of income each day.
In the unorganised sector, the wages are low, the employees are exploited, no extra income for extra time is given, no medical facilities are provided and the work environment is unhealthy.
Questions and Answers
17. Explain the objective of implementing the NREGA 2005.
Answer: The National Rural Employment Guarantee Act, 2005 was introduced with an aim to ensure guaranteed 100 days of employment in a year to all those who are in need of work. It also states that in the case of employment not being provided under this act, employment wages will be given to those left unemployed. Additional employment opportunities need to be created for people in villages and smaller towns.
18. Using examples from your area compare and contrast that activities and functions of private and public sectors.
Answer: In the private sector, the assets and industries are owned by individuals and in the public sectors industries and enterprises are owned by the Government. Private sector works to earn profits and the public sector works to provide facilities to the public and to earn profits. The common examples of the public sector that we can see around us are Government Banks, Post Offices, municipal hospital and Indian railways. The common examples of the private sector that we can see around us are IT companies, malls and multiplexes, etc.
Questions and Answers
19. Give a few examples of public sector activities and explain why the government has taken them up.
Answer: The public sector activities are set for the betterment of the public itself. The reason the government has taken up the public sector is so that proper facilities can be provided to the people of the country. Banks, transport, irrigation, electricity, water and all the basic things that are necessary for people, come under the public sector. Providing these facilities to its citizens is the responsibility of the Government.
20. Explain how the public sector contributes to the economic development of a nation.
Answer: The public sector is the sector that comes under the government of India. The reason for the government to take responsibility for this sector is because the basic necessities of people including water, electricity, irrigation, all fall under this category. If these departments are left unattended, it will result in the downfall of the economy of a country because the growth of the country would stop. The economic development of a country depends upon the development of the people and if people are deprived of the basic necessities, the country’s economic development would be affected. Government encourages small and large industries to flourish and provides employment under this section.
Questions and Answers
21. The workers in the unorganised sector need protection on the following issues : wages, safety and health. Explain with examples.
Answer: The unorganised sector is characterised by small and scattered units, which are largely outside the control of the government. There are rules and regulations but these are not followed. The workers in the unorganised sector need protection:
Wages: The income of workers in the unorganised sector is not fixed and they are barely able to meet the needs to lead a decent livelihood. Hence proper and fixed wages should be given to these workers so that they can grow and contribute to the growth of the country. For example – a painter only gets paid the wages for the days he works and on the other days, he is jobless and is able to earn nothing.
Safety: No safety is provided to the workers working in the unorganised sector. There is no job security and anyone can be fired and removed from their work as per the requirement of the labourers. For example – A labour working in the construction of a building is left with no work once the construction is complete and has no guarantee of getting work again.
Health: Health is a very important factor for the growth and development of the country. The unorganised sector is given no medical security and if any accident occurs while they are working, the employer is not responsible for their health. For example – there is no sick leave for labourers working on daily wages.
Questions and Answers
22. A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000 worked in the unorganised sector. The total income of the city in this year (1997-1998) was Rs 60,000 million. Out of this Rs 32,000 million was generated in the organised sector. Present this data as a table. What kind of ways should be thought of for generating more employment in the city?
Answer:
| Total Workers | Workers in Unorganised Sector | Total Income of City (1997-1998) | Income generated by organised sector | Income generated by unorganised sector |
| 15,00,000 | 11,00,000 | 60,000 million | 32,000 million | 28,000 million |
23. The following table gives the GDP in Rupees (Crores) by the three sectors:
| Year | Primary | Secondary | Tertiary |
| 2000 | 52,000 | 48,500 | 1,33,500 |
| 2013 | 8,00,500 | 10,74,000 | 38,68,000 |