CBSE Class 10 Social Science Sectors Of Indian Economy Notes

• Primary sector: When we produce goods by exploiting natural resources, it is an activity of the primary sector.

• Secondary sector: Covers activities in which natural products are changed into other forms through ways of manufacturing, it is also called as industrial sector.

• Tertiary sector: Activities that help in the development of the primary and secondary sectors. Since these activities generate services rather than goods, it is also called the service sector

• Gross Domestic Product (GDP): It is the value of all final goods and services produced within a country during a particular year.

• Underemployment: This is the situation of where people are apparently working but all of them are made to work less than their potential. This kind of underemployment is hidden in contrast to someone who does not have a job. Hence, it is also called disguised unemployment.

• Mahatma Gandhi National Rural Employment Guarantee Act 2005. (MNREGA 2005): Under NREGA 2005, all those who are able to, and are in need of, work have been guaranteed 100 days of employment in a year by the government. If the government fails in its duty to provide employment, it will give unemployment allowances to the people.

• Organised sector: It covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work.

• The unorganized 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.

• Public sector: In this sector government owns most of the assets and provides all the services.

• Private sector: In this sector ownership of assets and delivery of services is in the hands of private individuals or companies.
• Unemployment: It is a situation where the able bodied persons willing to work but are not able to get a work.

Sector of Economic Activities :

Primary Sector : When we produce a good by exploiting natural resources. It is an activity of the primary sector also known as agriculture and related sector. 

Secondary Sector : Natural products are changed into others forms through ways of manufacturing. Also known as Industrial sector. 

Tertiary Sector : These activities , by themselves, do not produce a good but they are an aid or a support for the production process. Also known as service sector.

Gross Domestic Production : the total value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year.

Rising importance of the Tertiary Sector :

- In any country several services such as hospitals, educational institution, defence, transport, banks etc. are required.

- The development of agriculture and industry leads to the development of services such transport, banks are required.

- The development of agriculture and industry lends to the development of services such as transport, trade, storage.

- As income levels rise, certain sections of people start demanding many more services like tourism, shopping, private hospitals and private schools etc.

- Over the past decade or so certain new services such as those based on information and communications technology.

Disguised unemployment : More people engaged in than the people required for work. People do less work than their efficiency. National Rural Employment Guarantee Act 2005

- 100 days work guarantee in year by the government.

- If government fails in its duty to provide employment. It will give unemployment allowances.

- Types of work given to improve production of land.

Organised Sector :

- Terms of employment are regular

- Registered by government

Follows various rules and regulations

- It has some formal processes and procedures.

Unorganised Sector :

- Small and scattered units which are largely outside the control of the government.

- There are rules and regulations but these are not followed.

- Employment is not secure.

QUESTION AND ANSWERS: (THREE MARK)

Question. What are final goods? Write two examples?
Answer : Final goods are those goods which are used either for the final consumption or for capital formation. These are not resold. In short, final goods have crossed the boundary line of production, and are ready for the use by the final users. Cloth, air conditioners and refrigerators are examples of final goods.

Question. What are basic services? How do they contribute for the growth of Tertiary sector?
Answer : In any country, several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, Municipal Corporation, defence, transport, banks, insurance companies, etc. are required. These are
considered as the basic services. Owing to growing income and demand for such services tertiary sector becoming important.

Question. Distinguished between the organized and the unorganized sector.
Answer : Organized Sector i) The sector is registered by the government. ii) The terms of employment are regular. iv) The sector is governed by various laws such as the factories act, minimum wages act, etc.
Unorganized sector i) The sector is not registered by the government. ii) The terms of employment are not regular. iii) The sector is not governed by any act.

Question. What is meant by enterprise? Classify enterprises on the basis of ownership.
Answer : When a person, a group of persons, is engaged in the production or distribution of goods or services which are meant mainly for the purpose of sale, it is called an enterprise.
Enterprises can be classified into Private and Public sector enterprise

Question. State any three causes of unemployment?
Answer : Insufficient economic development: It is true that under the planned development millions of new jobs were created but the number of job lookers was much more than those jobs. ii) Defective system of education: In our educational system there is lack of training facilities, lack of vocational and professional guidance. iii) Slow growth of industrialization: Slow growth of industrialization in the country is yet another cause of unemployment in the urban areas.

Question. State any three need for protecting the Public sector?
Answer : 1. To achieve social justice and equity
2. To provide basic services at an affordable price
3. Generating employment opportunities

Question. Distinguish between unemployment and underemployment.
Answer : Unemployment is a situation where the able bodied persons willing to work but are not able to get a work.
Underemployment is the situation of where people are apparently working but all of them are made to work less than their potential. This kind of underemployment is hidden in contrast to someone who does not have a job. Hence, it is also called disguised unemployment.

Question. Distinguish between Public sector and private sector 
Answer :
Public Sector
i) It is controlled and managed by the government.
ii) The main aim of the sector is public welfare.
iii) The sector provides basic facilities like education, health, food and security to the people.
iv) For ex, the Indian Railways, Post Office and the BSNL.

Private Sector
i) It is controlled and managed by an individual or a group
ii) The main aim of the sector is to earn maximum profits.
iv) The sector provides consumer goods to the people.
v) For ex, Reliance, TISCO, etc

Question. What are the objectives of NREGA 2005?
Answer :
Or
Why do you think NREGA, 2005 is referred to as ‘Right to Work’?
i) NREGA, 2005 is a law which is implemented by government of Indian in 200 districts of India.
ii) It is referred to as ‘Right to Work’ because it guarantees 100days of employment in a year by the government to all those who are able to work.
iii) Under this scheme, the gram panchayat after proper verification will register households, and issue job cards.
iv). And in case of failure unemployment allowance will be given to them.

Question. What are the advantages of working in an organized sector?
Answer :
i) Workers in the organized sector enjoy security of employment.
ii) They work only a fixed number of hours. If they work more, they have to be paid overtime by the employer.
iii) They also get several other benefits from the employers like paid leave, payment during holidays, provident fund, gratuity, etc.
iv) They also get medical benefits and, under the laws, the factory manager has to ensure facilities like drinking water and a safe working environment.

Question. What are the disadvantages of working in an organized sector? Or
Answer :
Why is it necessary to give protection and support to the unorganized sector workers? Explain.
i) The unorganized sector is characterized by small and scattered units which are largely outside the control of the government. Workers working in an unorganized sector get fewer wages.
ii) There is no provision of overtime, paid leave, holidays, leave due to sickness, etc.
iii) Employment is subject to high degree of insecurity.

Question. What are the measures to reduce unemployment?
Answer :
i) Rural works programme: This program aims at construction of civil works of permanent nature in rural areas.
ii) Integrated Dry land agricultural development: Under this scheme, permanent works like soil conservation, development of land water harvesting are undertaken.
iii) National Rural Employment Program: This program aims at creating community assets for strengthening rural infrastructure – drinking water wells, community irrigation wells, village tanks, rural roads and schools.
iv) Rural Landless Employment Guarantee Program: It aims at generating gainful employment, creating productive assets in rural areas and improving the overall quality of rural life.

Question. Mention the 3 different classifications on the basis of which we divide the sectors Indian economy.
Answer :a) Primary, Secondary & Tertiary sector
b) Private & Public sector
c) Organized & unorganized sector

Question. Classify industries on the basis of their economic activities with examples
Answer : PRIMARY SECTOR:
This sector consists of activities that are undertaken by directly using the natural resources. This sector is called primary as it forms the base for all other products to be subsequently produced. Example: In activities like dairy, we are dependent on the biological process of the animals & availability of fodder; cultivation of co on which depends on the availability natural factors like rainfall, sunshine etc.

SECONDARY SECTOR:
It covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. The product is not produced by nature but has to be made & thus some process of manufacturing is important. This could be done in a factory, workshop or at home. Since this sector gradually become associated with the different kinds of industries, it is also called industrial sector. Example: Using sugarcane as a raw material, we make sugar or gur; using wood to make furniture etc.

TERTIARY SECTOR:
This sector consists of activities that do not produce goods but they are an aid in the production process. Since these activities generate services than goods, it is also called service sector. Example: Goods produced in primary or secondary need to be transported by trains or trucks to be able to reach the final consumers; making use of banking service to borrow loan from banks to help production & trade.

Question. Why the Primary sector is also called ‘agriculture & related sector’?
Answer : Since most of the natural products we get are from agriculture, dairy, fishing, forestry, this sector is also called ‘agriculture & related sector’.

Question. What changes have been bought about in the primary, secondary & tertiary sectors over a period of me?
Answer :

PRIMARY SECTOR:
a) Noted from the histories of many (now developed) countries, primary sector was the most important sector of economic activity at initial stages of development.
b) As the methods of farming changed & agricultural sector began to prosper, it produced much more food than before.
c) Many people could now take up other activities. Buying & selling activities increased many times.
d) However, at this stage most of the goods produced were natural products from primary sector & most people were also employed in this sector.

SECONDARY SECTOR:
a) Over a long me & specially because new methods of manufacturing were introduced, factories came up & started expanding
b) Those people who had earlier worked on farms now began to work in factories in large numbers. People began to use goods that were produced in factories at cheaper rates.
c) This sector gradually became important in the total production & employment.
d) Hence, over time, a shift had taken place. This means that the importance of sectors had changed.

TERTIARY SECTOR:
a) In the past 100 years, there has been a further shift from secondary to tertiary sector in developed countries.
b) The service sector has become very important in terms of the total production.
c) Most of the working people are also employed in the service sector. This is the general pattern observed in developed countries.

Question. “Tertiary sector has emerged as the largest producing sector in India replacing the primary sector”. Explain why is the tertiary sector becoming so important in India?
Answer : Following factors can be attributed for the rising importance of the tertiary sector:
First, in any country, several services like hospitals, banks, insurance, police station, courts etc are required.
These can be said as basic services which are the responsibility of government in a developing country.
Second, the development of agriculture & industry leads to the development of services such as transport, trade, storage & the like. Thus, greater the development of primary & secondary sectors more would be the demand of such services.
Third, as income level rise, certain sections of people start demanding more services like eating out, shopping, private schools or hospitals etc.
Fourth, over the past decade or so, certain new services like those based on information & communication technology have become important. The production of these services has been rising rapidly.

Question. “Not the en re service sector is growing equally well.” Do you agree with this statement? Give reason(s) for your answer.
Answer : Yes, not the en re service sector is growing equally well. This is because the service sector in India employs different kinds of people. At the one end, there are a limited number of services that employ highly skilled & educated workers. At the other end, there are a very large number of workers engaged in services like small shopkeepers, repair persons, transport persons etc these people barely manage to earn a living & yet they perform these services as no alternative work is available to them. Hence, only a part of this sector is growing in importance.

Question. How do we calculate the GDP of a country?
Answer : GDP is the Gross Domes c Product which is calculated by having the sum of production in the 3 sectors.
GDP is the value of all final goods & services produced within a country during a particular year. In India, the task of measuring GDP is undertaken by central ministry which collects information relating to total volume of goods & services & their prices & then estimates the GDP.

Question. Why are only ‘final goods & services’ counted in the GDP? Explain with the help of an example.
Answer : This is because the value of final goods already includes the value of all intermediate goods that are used in making the final good.
For example, a farmer sells wheat to a flour mill for Rs 8 per Kg. The flour mill grinds the wheat & sells the flour to a biscuit company for Rs 10 per Kg. The biscuits company in turn uses flour & other things to make biscuit & sells it in the market for Rs 60. Here, the value of Rs 60 for biscuit (final good) already includes the value of flour (Rs 10).

Question. “More than half of the workers in the country are working in the primary sector, mainly in agriculture, produce only a quarter of GDP.” Does this statement mean that the workers in agriculture are not producing as much as they could? Give reasons.
Answer : It is not that the workers in agriculture are not producing as much as they could but the real problem is that there are more people in agriculture than is necessary. So, even if a few people are pulled out from here, production will not be affected. Thus, workers in agriculture sector are said to be underemployed. Also, the rate at which these primary products are sold in the market is less because of which their contribution to the GDP is also less.

Question. Why is the problem of underemployment hidden in nature?
Answer : The problem of underemployment is hidden in nature as people are apparently working but all of them are made to work less than their potential or some people are even made to work more but are not paid accordingly & are thereby exploited. This is in contrast to someone who does not have a job & is clearly visible as unemployed.

Question. Does the problem of underemployment happen in others sectors also, apart from agriculture? Substantiate with example(s).
Answer : yes, the problem of disguised unemployment happens in other sectors as well. For example, there are thousands of casual workers in the service sector in the urban area who search for daily employment. They are employed as painter, plumber etc. Many of them do not find work every day. Similarly, we see other people in the service sector where they may spend the whole day but earn very little.

Question. Why do you think NREGA is referred to as ‘Right to work’?
Answer : The central government in India recently made a law implementing the Right to Work in 200 districts of India. It is called National Rural Employment Guarantee Act 2005. It is referred to as ‘Right to Work’ as all those who are able to & are in need of work have been guaranteed 100 days of employment in a year by the govt. if the govt fails in its duty to provide employment, it will give unemployment allowance to the people.

Question. What is an organized sector of economy?
Answer : Organized sector covers those enterprises or places of work where the terms of employment are regular & therefore people have assured work.

Question. Why is the organized sector of economy so called?
Answer : This sector is called Organized because it has some formal processes & procedures. They are registered by the government & have to follow its rules & regulations which are given in various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act etc.

Question. What are the benefits that are enjoyed by the people working in the organized sector?
Answer : a) Workers in this sector enjoy security of employment
b) They are expected to work only a fixed number of hours & if they work more, they are paid over me by the employer.
c) They enjoy benefits like paid leaves, payment during holidays, provident fund, gratuity etc
d) They are supposed to get medical benefits & under the laws, the factory manager has to ensure facilities like drinking water & safe working environment.
e) On retirement, the workers are even entitled to pensions as well.

Question. What is unorganized sector of economy?
Answer : This sector is characterized by small & scattered units which are largely outside the control of the govt.There are rules & regulations but which are not followed. Jobs here are low paid & even not regular.

Question. What are the disadvantages that people have to suffer in the Unorganized Sector?
Answer : a) There is no job security as a lot depends on the whims of the employer & some people may be asked to leave.
b) There is no provision for over me, paid leave, holidays, leave due to sickness etc.

Question. In the rural areas, who are the vulnerable people in the unorganized sector who need protection by the government?
Answer : In the rural areas, the unorganized sector mostly comprises of landless agricultural laborers, small & marginal farmers, sharecroppers & artisans (such as weavers, carpenters, goldsmiths etc). Nearly 80% of the rural household in India is in small & marginal farmer category. These farmers need to be supported through adequate facilities for timely delivery of seeds, agricultural inputs, credit, storage facility & marketing outlets.

Question. In the urban areas, who are the vulnerable people in the unorganized sector who need protection by the government?
Answer : In the urban areas, unorganized sector comprises mainly of the workers in small scale industries, casual workers in construction, trade & transport etc & those who work as street vendors, head load porters, rag pickers etc. Small scale industries also need government’s support for processing raw material & for marketing the output. Similarly, the casual workers also need protection in their jobs & wages.

Question. How do we classify the sectors of Indian economy in terms of ownership?
Answer : In terms of ownership, we can classify the sectors as Private & Public sectors. In the Public sector, govt owns most of the assets & provides all the services. Example: Railways or post office. In Private sector, ownership of assets & delivery of services is in the hands of private individuals or companies. Example: Reliance Industries Ltd (RIL), Tata Iron & Steel Company Ltd (TISCO).

Question. Why do we need to have Public sector in a society when we have the Private sector providing quality services? Give reasons for your answer.
Answer : We need to have Public Sector for the following reasons:
a) Advances in a private sector are guided by the motive to earn profits. However, the purpose of the public sector is not to earn profits but to provide services to the people.
b) There are several things needed by the society as a whole but which the private sector will not provide at a reasonable cost as these need spending large sums of money which is beyond the capacity of the private sector.
c) Also, collecting money from thousands of people who use these facilities is not easy. Even if the private sector provides these things, they would charge a high rate for their use.
Thus, governments have to undertake such heavy spending & ensure these facilities are available to all.

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