Class 10th Economics Easy Notes Ch 2 SECTORS OF INDIAN ECONOMY

Headings From Textbook

• Sectors of economic activities
• Comparing the three sectors
• Primary, secondary and tertiary sectors in India
• How to create more employment ?
• Division of sectors as organized and unorganized
• How to protect workers in the unorganized sector?
• Sector in terms of ownership

Sector Of Economic Activities

• People are engaged in different type of activities for everyday life expenditures.
• There are many activities that are undertaken by directly or indirectly using natural resources.
• We should classify these activities in group for better understand :

1. Primary sector
2. Secondary sector and 
3. Tertiary sector

Primary Sector

• When we produce a good by exploiting natural resources it is an activity known as primary activity.
• We depends mainly not entirely on natural factors like climate and rainfall. For instance :

1. Agriculture
2. Mining
3. Fishing
4. Diary
5. Forestry

Secondary Sectors

• Secondary sectors cover activities in which natural products are changed into any other product of use.
• This sector is also called the industrial sector.
• Most of the product that we use, is not produced by nature but has to be made and therefore some process of manufacturing is important.
• This could be done at home or in a workshop, factory and industry.
• For example we can make sugar with sugar cane and the process of making sugar could be done in  a factory.

Tertiary Sector

• Tertiary sector includes activities that give support and services to both primary and secondary sectors.
• It includes services like, transportation, communication, banking, trade, storage and administration.
• Extensions of tertiary sectors are Quaternary sector and Quinary sector.

Comparing The Three Sectors

• The three sectors have a massive number of people working in them to produce these goods and provide services.
• Therefore, the next step, is to see how much goods and services are produced and how many people work in each sector.
• In building of an economy of a country there could be one or more sectors which are dominant in terms of total production and employment, while other sectors are relatively small in size could be more beneficial.
• Every good (or service) that is produced and sold, could not be counted.Therefore, Only final goods and services should be counted.
• For example a farmer who sells wheat to a flour mill for Rs 8/kg. The mill grinds the wheat and sells the flour to a biscuit company for Rs 10/kg. The biscuit company uses the flour and things like sugar and oil to make 6 packets of biscuits. It sells biscuits in the market to the consumers for Rs 60 (Rs 10/packet). Biscuits are the final goods, that reach the consumers.
• Hence, the price of Rs 60 for the biscuits (final good) already includes the price of flour (Rs 10). Similarly, value of all other intermediate goods would have been included. To count the price of the wheat and flour separately is therefore not accurate because then we would be counting the price of the same things a number of times. First as wheat, second as flour and final as biscuits.

Gross Domestic Product (GDP)

• The sum of production within the three sectors gives what's called the Gross Domestic Product (GDP) of a country.
• It is the worth of all final goods and services produced within a country during a specific year. GDP shows how big the economy is.
• In India, the action of calculating GDP is undertaken by a central government ministry.
• With the assistance of various government departments of all the Indian states, collects information relating to total volume of products and services and their value then estimates the GDP.
• At initial stages of development, primary sector was the foremost important sector of economic activity.
• As the methods of farming changed and agriculture sector began to prosper, it produced far more food than before.
• New methods of producing were introduced, factories came up and began expanding. Those people who had earlier worked on farms now began to work in factories in large numbers.
• Secondary sector gradually became the most important in terms of total production and employment.
• In the past 100 years, there has been an additional shift from secondary to tertiary sector in developed countries.

Primary, Secondary And Tertiary Sectors In India

• In 1970-71 primary sector was the most important sector and most people were engaged in primary activities.
• In 2011-12 secondary and tertiary sector becoming more important than primary sector
• Govt. has developed several services such as hospitals, school, post offices, police stations, courts, municipal corporations, transport, banks etc. which are basic needs of a country and they are part of a tertiary sector.
• Second, the development of agriculture and industries also led to the development of tertiary sector.
• Third, as income levels rise, people start demanding more services like eating out, tourism, shopping, private hospitals, private schools, professional training etc.
• Fourth, information and communication technology have become important and essential.
• Tertiary sector required educated and skilled people.

Share Of Sectors In GDP

1. Primary sector : 15%
2. Secondary sector : 27%
3. Tertiary sector : 58%

Share Of Sectors In Employment

1. Primary sector : 49%
2. Secondary sector : 24%
3. Tertiary sector :27%

Disguised Unemployment/Under Employment 

• The state of underemployment,  where people are apparently working but all of them are made to work much less than their potential. This type of underemployment is hidden in contrast to person who does not have a job or clearly unemployed. Hence, it is also called disguised unemployment.

How To Create More Employment ?

• Government can provide cheap loan so farmers can do multiple cropping throughout the year.
• Government can connect roads to the villages so that transportation sector may give more opportunities of jobs.
• Opening cold storage.
• Government can establish industries near villages so that more person can reach there.
• Government can open school for double benefits. one children can go to schools within their village and second school can provide jobs for teachers in their village.
• Long term plans – Tourism.
• Short term plans – NREGA (National Rural Employment Guarantee Act).
• Started in 2005.
• Started in 200 district – later extended in 650 districts.
• To provide employment for 100 days.
• If the government fails in its duty to provide employment under 100 days, Government will give unemployment allowances to the people.

Division Of Sectors As Organized And Unorganized

Organized Sectors

1. They are registered by govt. and have to follow rules & regulations.
2. Factories act and minimum wages act are followed.
3. Job security.
4. Fixed working hours & overtime.
5. Paid holidays.
6. Good working condition.
7. Pension.
8. Eg :- govt. jobs, banks, schools etc. 

Unorganized Sectors

1. They are not registered and follow there own rules.
2. No act are followed.
3. No job security.
4. No fixed time, no overtime. 
5. No paid holidays.
6. Bad working conditions. 
7. No pension.
8. Eg :- hotels, dhaba and farming 

How To Protect Workers In The Unorganized Sector?

Rural Areas

• The unorganized sector in rural areas includes usually landless agricultural laborers, small and marginal farmers, sharecroppers and artisans such as blacksmiths, carpenters, weavers and goldsmiths.
• Nearly 80% are engaged in farming.
• Support :- good seeds, agricultural inputs, credit, irrigation system, storage facilities and marketing outlets.

Urban Areas 

• The unorganized sector in urban areas includes mainly workers in small-scale industry, street vendors, casual workers in construction, garment makers, trade and transport, head load workers, rag pickers etc.
• Support :- good labor laws and policies.
• SC, ST and OBC , no discrimination.

Sector In Terms Of Ownership

Public Sector

1. Controlled and managed by government.
2. Aim of this sector is public welfare.
3. This sector provides basic facilities and services like education, health, food and security.
4. Eg : Indian Railways and BSNL etc.

Private Sector

1. Controlled and managed by a group or an individual.
2. Aim is to gain more and more profit.
3. The sector provides consumer goods to people. 
4. Eg : TISCO, TATA and  Reliance etc.

• Services needed by the society as a whole but which the private sector  will not supply at a suitable cost. For example railways, electricity and bridges etc.
• If they do supply these services they would charge a high rate for their use.
• Governments have to undertake such heavy spending and assure that these facilities and services are available for everyone.
• The private sector may not continue their production or business or can't able to provide services unless government encourages them.
• The Government in India buys wheat and rice from farmers at a ‘fair price’, and stores in godowns and sells at a lower price to consumers through ration shops.

FOR COMPLETE EXPLANATION CLICK HERE : https://www.youtube.com/watch?v=X0wE9jWGFhg

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