CBSE Class 10 Social Science Economics Sectors of the Indian Economy Hindi Assignment

Sectors of the Indian Economy Summary Class 10 Social Science

ECONOMIC ACTIVITIES – Activities performed to generate income.

SECTORS OF ECONOMIC ACTIVITIES-

Primary Sector – In this we producea good by exploiting naturalresources. It is called primary because it forms the base for all other products that we subsequently make. This sector is called agriculture and related sector because most of the natural products are from agriculture, dairy, fishing, forestry. Examples of activities from this sector include agriculture, dairy, fishing,forestry and mining.

Secondary Sector– It coversactivities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. It is the next step after primary.It is also called as industrial sector.Examples of activities from this sector include manufacture of sugar/gur form sugarcane, using cotton fiber to spin yarn and weave cloth.

Tertiary Sector – This sector help in the developmentof the primary and secondary sectors. Activities in this sector, do notproduce a good but they are an aidor a support for the productionprocess. Examples of activities from this sector include washermen, barbers,cobblers, lawyers, transport,storage, communication, banking,trade. It is also called asservice sector.
All economic activitiesare highly interdependent.

COMPARING THE THREE SECTORS-
● With so many thousands of goods and services produced, it might appear impossible task to count the various goods and services and know the total production in each sector. Economists suggest that the values of goods and services should be used rather than adding up the actual numbers.
● Value of final goods and services is used as they already include the value of all the intermediate goods.
● Gross Domestic Product (GDP) of a country is the sum of value of final goods and services produced in each sector during a particular year.It is the value of all final goods and services produced within a country during a particular year. It shows the size of economy.

Historical Change in Sectors –

In Developed Countries -
● At initial stages of development, primary sector was the most important sector of economic activity.
● At middle stage (secondary stage) of development secondary sector gradually became the most important in total production and employment.
● 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 also employed in the service sector.

PRIMARY, SECONDARY AND TERTIARY

SECTORS IN INDIA (Historical Change in Sectors in India) -

Graph 1 shows theproduction of goods andservices in the three sectors for 1973-74 and 2013-14. This shows that
a) Though primary sector had largest share in GDP in 1973-74, it’s share declined in 2013-14.
b) Though share of both, secondary and tertiary sectors, increased but tertiary sector emerged to be larger share holder in 2013-14.

Graph 2 show that share of primary sector in GDP (in percentage) reduced to less than 15% in 2013-14 but share of both, secondary and tertiary sectors, increased with tertiary sector becoming the largest shareholder with more than 65% in 2013-14.

Graph 3 show that share of sectors in employment (in percentage) for 1973-74 and 2017-18 changed
For primary sector from 71% in 1973-74 to 44% in 2017-18. (Decreased)
For secondary sector from 11% in 1973-74 to 25% in 2017-18. (Increased)
For tertiary sector from 18% in 1973-74 to 31% in 2017-18. (Increased)
But the primary sectorcontinues to be the largestemployer.
Rising Importance of theTertiary Sector in Production – Causes -
1. In a developing country the government has to take responsibility for the provision of basic services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative officesetc.
2. The development ofagriculture and industry leads to the increase in demand of services.
3. As income levels rise, certainsections of people start demandingmany moreservices like eating out,tourism, shopping, private hospitals.
4. Over the past decade or so,certain new services such as those based on information and communication technology have become important and essential.

Where are most of the people employed –
● In primary sector because enough jobs were not created in the secondary and tertiary sectors. Though primary sector produces just one sixth of the GDP.
(In secondary sector – Production increased to 9 times but employment increased to 3 times only.
In tertiary sector - Production increased to 14 times but employment increased to 5 times only.)
● More workers in the agricultural sector means there are more people than necessary. They areunderemployed.Underemployment is also known as disguised unemployment.
● Underemployment can be seen in other sectors too such as service sector in which casual workers don’t get work everyday and many times earn very little even after working for whole day.

How to Create More employment –
● The government can spend somemoney or banks can provide a loan,to construct a well. This will improve irrigation facility leading to increase in production.
● If government invests somemoney in transportation and storage ofcrops, or makes better rural roads sothat mini-trucks reach everywhere. Thiscan provide productive employment tonot just farmers but also others such asthose in services like transport or trade.
● Farmers can be provided with cheap agricultural credit. This will help to purchase seeds, fertilizers,agricultural equipments.
● local industries and services can beidentified, located and promoted in semi-rural areas where alarge number of people may beemployed.
● Efforts to improve the educational status and health situation will lead to increase in number ofeducational and medical institutions which will further lead to employment to more people (20 lakh jobs in education sector alone).
● Identification of tourism, regional craft, industry, or new services like IT in various regions and states will lead to employment to more people (35 lakh jobs in tourism sector alone)
● Many suggestions discussed above maytake a long time to implement. For theshort-term, we need some quickmeasures. Implementation of programs like Mahatma Gandhi NationalRural Employment Guarantee Act2005 (MGNREGA 2005).MGNREGA 2005 is implemented in 625 districts of India and guarantee 100 days of employment to people in rural areas. In case government fail to provide work, unemployment allowances are given.

Division of Sectors as Organised and Unorganised:
● Organised Sector: It is characterized by regular terms of employment, mandatory registration with thegovernment and mandatory adherence to laws and rules like Minimum Wages Act etc.Workers in the organised sectorenjoy security of employment, paid leave,payment during holidays, providentfund, gratuity, medical benefits, safe working environment, pensions.
● Unorganised sector: It is characterized by lack of government control, non-adherence to rules andregulations and unsecured employment. Jobs are low-paid and often not regular. Thereis no provision for overtime, paidleave, holidays, leave due to sicknessetc.

How to Protect Workers inthe Unorganised Sector
● Many organized sector firms, trespass into unorganized setup, as a strategy to avoid certain legalframeworks and to avoid taxes etc.
● Job loss in the organised sector is also pushing many workers to the low paying unorganisedsector. Many workers lost jobs since 1990s.
● Those who need protection include –
a) In rural areas - landless agriculturallabourers, small and marginalfarmers, sharecroppers and artisans.
b) In urban areas - workers insmall-scale industry, casual workersin construction, trade and transportetc., and streetvendors, head load workers, garmentmakers, rag pickers etc.
c) Vulnerable sections like the Scheduled Castes, Scheduled Tribes etc.
● Providing more work, protection and support can protect workers in the unorganised sector.

SECTORS IN TERMS OF OWNERSHIP: PUBLIC AND PRIVATE SECTORS -
● Public sector is characterized by government ownership of most of the assets and provides all theservices. For example, Railways, post offices, etc.
● Private sector is characterized by private ownership of assets and delivery ofservices by private individuals or companies. For example, Tata Iron and Steel Company Limited(TISCO) or Reliance Industries Limited (RIL) etc.
● A general analysis in Indian scenario is as follows:
✔ Goods and services in the private sector are provided with a profit motive, hence this sector doesnot provide certain essential services due to high costs and operational difficulties.
✔ Government provides certain services like construction of roads, bridges,railways, harbors,generating electricity, providing irrigation through dams etc. to make them affordable andaccessible to everyone.
✔ Government has to support the private sector to induce continued production in some sectors. Forexample: bearing a part of the cost of electricity generation to make it affordablefor the consumers.
✔ The government must spend on activities consisting of its primary responsibilities like providinghealth and education facilities for all.