PRASHANT KIRAD
Sectors of Indian Economy
Economic Activity: The activities which are formed to generate income.
Exam me aayega
Classification of Economic Activities:
On the basis of On the basis of On the basis of
Nature employment ownership
Primary sector Organised sector Public sector
Secondary sector Unorganised sector Private sector
Tertiary sector
Primary sector :- Directly connected to nature
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When we produce something by exploiting natural resources it is an
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activity of the primary sector.
Provides the base for all other products.
Related to agriculture, it is also called Agricultural and related sector.
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e.g.: Dairy, Farming, Mining etc.
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Secondary sector :- Industrial sector.
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The secondary sector covers activities in which natural products are
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changed into other forms through ways of manufacturing.
e.g: Cotton to cloth, Sugarcane to sugar
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Tertiary sector:- Service sector
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They don't produce any goods but these activities provide a service.
Includes services that help in the development of primary and
secondary sectors.
Eg. transport, Cobbler, Doctor, [Link]
Comparing the three sectors: Exam me aayega What is
GDP measures the total production of GDP??? 🤔
goods and services. Gross domestic product
The value of final goods and services produced within the
country during a particular year is called GDP.
When we calculate the production of each sector we only
add the value of final goods rather than intermediate
goods because the price of intermediate goods is already
included in final goods.
JOSH METER?
PRASHANT KIRAD
Total GDP = GDP of Primary + GDP of secondary + GDP of tertiary
sector.
GDP shows how big an economy is.
The country with the highest GDP is USA.
India has 5th largest GDP.
The GDP of India is measured by the Central
Government's Ministry.
Historical changes in sectors:
Initially, the Primary sector (agriculture) was dominant. With industrial
development, the Secondary sector (manufacturing) took over. Today, the
Tertiary sector (services) is the most important in modern economies.
Importance of Tertiary sector:- Exam me aayega
Tertiary sector has emerged as the largest producing sector in India because -
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The government has developed hospitals, schools, courts, banks, police,
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army, etc., which are basic needs of a country and are part of the tertiary
sector.
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Development in the primary and secondary sectors has led to the
development of the tertiary sector as they are interdependent.
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A rise in the income level of people has increased the demand for eating
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out, shopping, movies, tourism, etc., which are part of the tertiary sector.
New services based on information and communication technology (e.g., the
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Internet) have become essential. These services are growing rapidly.
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Disguised Unemployment
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When more people are working than is
needed, this situation is called under-
employment or disguised unemployment.
This is the situation of underemployment,
where people are working but all of them
are made to work less than their potential.
Underemployment in the Primary Sector
"The primary sector employs a significant proportion of the workforce, yet
its contribution to India's GDP remains relatively low.
This disparity can be attributed to underemployment, a phenomenon where
individuals are not utilized to their full capacity.
A pertinent illustration of this is the case of street vendors or cart
pushers, who often work extensive hours but receive meagre earnings,
highlighting the inefficacy of underemployment."
PRASHANT KIRAD
How to create more Employments? : MgNREGA 2005
Mahatma Gandhi National Rural
The government can offer low-interest loans Employment Guarantee Act (MGNREGA)
to farmers for better equipment and multiple The MGNREGA was launched in 2005 to
provide employment opportunities in rural
cropping, ensuring year-round employment. areas
Investment in transportation and road - Guarantees 100 days of employment per
year to rural households
construction would create jobs for labourers - Provides unskilled labour jobs in rural areas
and drivers. - Ensures fair wages and social security
- Reduces poverty and migration
Setting up industries near rural areas can
- Empowers rural communities
generate employment for many. - Promotes sustainable development
By building more schools and appointing The MGNREGA is a vital initiative that
supports rural employment and development.
teachers, over 20 lakh jobs can be created. By understanding its features and benefits,
Developing the tourism sector can generate we can appreciate its impact on rural
communities.
more than 35 lakh jobs.
Organised vs unorganised sector
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Organized Sector Unorganized Sector
Registered by the government and follow all Not registered with the government and often
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rules. violate rules.
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Workers have job security and can't be fired Workers don't have job security and can be
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without proper reasons. fired at any time.
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Workers get a pension when they retire. Workers do not get a pension when they retire.
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Good working conditions and a safe Often dangerous work environments without safe
environment. equipment.
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No fixed work hours and no extra pay for
Fixed work hours, paid extra for overtime.
overtime.
Paid leave, payment during holidays, provident
No paid leave, holidays, or leave due to sickness.
fund, etc.
Examples: Government jobs, schools, banks, Various informal jobs are not regulated by the
etc. government.
How to protect the Unorganised Sector:
In Rural Areas: Support small and medium farmers with timely
seeds, cheap loans, storage facilities, and fair market prices.
In Urban Areas: Support labourers and small industries with
good labour laws and favourable policies.
Pointers yaad
rakhna, important h!
PRASHANT KIRAD
Backward Communities: Protect workers in the unorganized sector from
discrimination based on caste or background.
Public and Private sector:
Public sector
The government owns most of the assets and provides all the services.
Their goal is to serve people.
For example - Government schools, hospitals, post offices, the army etc.
Private sector
The Ownership of assets and delivery of services is in the hands of private
individuals or companies.
Their goal is to make a profit and earn money.
For example - Reliance, Google, Apple, Tata etc.
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Top 7 Questions RA
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Short answer type questions
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Q1. What constitutes the unorganised in the urban areas? Why do
workers in this area need protection? (CBSE-2015)
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Ans: Workers in small-scale industry, casual workers in construction, and
trade transport constitute the unorganised in the urban areas. The workers
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in this sector need protection because:
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1. They are paid very low.
2. Their work is erratic.
[Link] did MGNREGA 2005 bring upliftment of the rural people? Explain.
(CBSE- 2014)
Ans: Mahatma Gandhi National Rural Employment Guarantee Act 2005 bring
upliftment of the rural people by the following:
1. This act was passed in the year 2005.
2. According to this act, 100 days guarantee employment is provided to all
those who can work and need work in rural areas.
3. Unemployment allowance is provided to the workers if the government is
not able to provide them work within 15 days.
4. This act helps in providing income and livelihood to the people in the rural
areas.
