CBSE Class 10 Social Science Sectors of the Indian Economy VBQs

You will find that people are engaged in various economic activities. Some of these activities are producing goods. Some others are producing services. These activities are happening around us every minute even as we speak. How do we understand these activities? One way of doing this is to group them (classify them) using some important criterion.

SECTORS OF ECONOMIC ACTIVITIES

Classification of Sectors According to Activity- Primary Sector When the economic activity depends mainly on exploitation of natural resources then that activity comes under the primary sector. Agriculture and agriculture related activities are the primary sectors of economy. It also involves retrieval and production of raw materials, such as coal, or other minerals.

Secondary Sector
When the main activity involves transformation of the raw materials into goods such as manufacturing then it is the secondary sector. For example, steel is converted to a motor car or textile is converted into clothing. All industrial production, where physical goods are produced, come under the secondary sector.

Tertiary Sector

• When the activity involves providing intangible goods like services then this is part of the tertiary sector. Financial services, management consultancy, cinema telephony, IT or even babysitting are good examples of service sector.
• It is suggested that traditional tertiary services could be further distinguished from “quaternary” and quinary service sectors. Economic activity in the hypothetical quaternary sector comprises informationand knowledge-based services, while quinary services include industry related to human services and hospitality.

More Classification of Economic Sectors

Calculation of Total Production

• In calculating the total production, the rupee value of the goods is calculated and added up.
• However, the value of the final goods and services are taken. The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year.
• The sum of production in the three sectors gives the Gross Domestic Product (GDP) of a country. GDP shows how big the economy is. In India, the task of measuring GDP is undertaken by a central government ministry.

PRIMARY, SECONDARY AND TERTIARY SECTORS IN INDIA

Evolution of an Economy from Primary Sector Based to Tertiary Sector

• During early civilisation all economic activity was in primary sector. When the food production became surplus people’s need for other products increased. This led to the development of secondary sector. The growth of secondary sector spread its influence during industrial revolution in nineteenth century.
• After growth of economic activity, a support system was needed to facilitate the industrial activity. Certain sectors like transport and finance play an important role in supporting the industrial activity. Moreover, more shops were needed to provide goods in people’s neighbourhood.
• Ultimately, other services like tuition, administrative support, etc. developed.

Interdependency of Sectors

• Let us take an example of a cold drink that contains water, sugar and artificial flavour.
• The cold drink manufacturer is dependent on the farmer for sugar.
• Both are dependent on a transporter so that the sugarcane reaches the sugar mill and then the sugar reaches the cold drink plant.
• A person or system of persons is required to maintain and monitor all these movements of goods from farm to factory to shop in different locations.
• The farmer also needs fertilizers and seeds which are processed in some other factory and need to be delivered to his doorstep by some means of transportation.
• At every step, these activities need the support of banking system. So, in a nutshell, this describes how interrelated all sectors of an economy are.

1. The first graph shows the rupee turnover of various sectors in 1973 and 2003. The second graph shows the share of three sectors in the GDP during these twenty years and the last graph shows share in providing employment. The first graph shows a massive increase in turnover for all these sectors during twenty years, which shows the way our economy grew.

2. The second graph shows that share of agriculture decreased substantially and that of industry remained static and share of services grew. Particularly the growth of share of services sector was phenomenal from 35% to 55%.

3. The third graph paints a distressing picture. The primary sector provided employment to 75% workers and this decreased to 60% in 2000, which is not as big a drop as agriculture’s drop in GDP contribution. On the other hand, the growth in employment provided by other two sectors was substantially low.

The meaning of this finding is as follows:

• Majority of people are still employed in agricultural activities. As agriculture provides seasonal employment during cropping season so chances of hidden employment are big. In addition, it has been seen in other economies that gradually, as economies grow, the sectoral shift from primary to secondary and tertiary sector always happens.
• Hence, in that sense a large majority of the Indian work force is still with the primary sector.
• Secondary and tertiary sectors have failed to generate enough employment opportunities making a pressure on the primary sector.

DIVISION OF SECTORS AS ORGANIZED AND UNORGANIZED

Organized sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work. They are registered by the government and have to follow its rules and regulations which are given in various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act etc.

It is called organized because it has some formal processes and procedures. Some of these people may not be employed by anyone but may work on their own but they too have to register themselves with the government and follow the rules and regulations.
Workers in the organized sector enjoy security of employment. They are expected to work only a fixed number of hours. If they work more, they have to be paid overtime by the employer. They also get several other benefits from the employers.
They get paid leave, payment during holidays, provident fund, gratuity etc. They are supposed to get medical benefits and, under the laws, the factory manager has to ensure facilities like drinking water and a safe working environment. When they retire, these workers get pensions or other benefits.
- The unorganized sector on the other hand is characterized 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 often not regular. There is no provision for overtime, paid leave, holidays, leave due to sickness etc.
Employment is not secure. People can be asked to leave without any reason. When there is less work, such as during some seasons, some people may be asked to leave. A lot also depends on the whims of the employer. This sector includes a large number of people who are employed on their own doing small jobs such as selling on the street or doing repair work. Similarly, farmers work on their own and hire laborer as and when they require.

Protecting Workers in the Unorganized Sector

We know that large number of workers are forced to enter the unorganized sector jobs, which pay a very low salary. They are often exploited and not paid a fair wage. Their earnings are low and not regular. These jobs are not secure and have no other benefits. Hence, there is a need for protecting the employees in the unorganized sector. In the rural areas, the unorganized sector mostly comprises of landless agricultural laborer, small and marginal farmers, sharecroppers and artisans (such as weavers, blacksmiths, carpenters and goldsmiths).

Nearly 80 per cent of rural households in India are in small and marginal farmer category. These farmers need to be supported through adequate facility for timely delivery of seeds, agricultural inputs, credit, storage facilities and marketing outlets.

In the urban areas, unorganized sector comprises mainly of workers in smallscale industry, casual workers in construction, trade and transport etc., and those who work as street vendors, rag pickers etc.
We also find that majority of workers from scheduled castes, tribes and backward communities find themselves in the unorganized sector. Besides getting the irregular and low paid work, these workers also face social discrimination.

SECTORS IN TERMS OF OWNERSHIP: PUBLIC AND PRIVATE SECTORS

An important way of classifying economic activities into sectors is on the basis of who owns assets and is responsible for the delivery of services. 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 whereas companies like Tata Iron and Steel Company Limited (TISCO) or Reliance Industries Limited (RIL) are privately owned.
Activities in the private sector are guided by the motive to earn profits. To get such services we have to pay money to these individuals and companies.

The purpose of the public sector is not just to earn profits. Governments raise money through taxes and other ways to meet expenses on the services rendered by it. There are several things needed by the society as a whole but which the private sector will not provide at a reasonable cost. Some of these need spending large sums of money, which is beyond the capacity of the private sector. Also, collecting money from thousands of people who use these facilities is not easy. Examples are construction of roads, bridges, railways, harbors, generating electricity, providing irrigation through dams etc. Thus, governments have to undertake such heavy spending and ensure that these facilities are available for everyone.

The Need for Public Sector

There are several things needed by the society as a whole but which the private sector cannot provide at a reasonable cost. Why?
Some of these projects need spending large sums of money, which is beyond the capacity of the private sector.

Collecting money from thousands of people who use these facilities is not easy. Even if they do provide these things the private sector is more likely to charge a high rate for their use. Examples are, construction of roads, bridges, railways, harbours, metro rail, providing irrigation through dams, etc.

Only the governments can undertake such heavy spending and ensure that these facilities are available for everyone. There are some activities, which the government has to support.
In some cases, the government subsidises the goods that are meant for the poor. This includes cooking gas, fertilizers, irrigation, electricity in rural sector support purchase price of farm produce, primary education and medical care, etc. Government Aided Schemes to Fight Unemployment
How to Protect Workers in the Unorganised Sector?

The unskilled or semi-skilled labour generally is forced to seek jobs in the unorganised sector. These people need some protection in getting jobs and from exploitation. The casual workers in both rural and urban areas need to be protected. We also find that majority of workers from scheduled castes, tribes and backward communities find themselves in the unorganised sector. Besides getting the irregular and low paid work, these workers also face social discrimination. Protection and support to the unorganised sector workers is thus necessary for both economic and social development.

Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA)

• Earlier known as NREGA (National Rural Employment Guarantee Act 2005)
• MGNREGA aims at enhancing livelihood security of the households in rural areas of the country by providing at least one hundred days of guaranteed wage employment in a financial year. The allocation of `48,000 crore for the FY 2017-18, is the highest ever allocation for MGNREGA. (Under NREGA 2005, all those who were able to, and were in need of, work had been guaranteed 100 days of employment in a year by the government. People were given unemployment allowance in case they were not given work under the Act.)

It provides 100 days of guaranteed employment every year.
Non-employment allowance in case the employment was not provided.
This is an application of “the right to work” ethics.
Enforces equal wage-equal work.
Targets SC/ST and poor women folk.
One third beneficiaries are women.

Other employment generating initiatives of the government of India includes:
–– Pradhan Mantri Gram Sadak Yojana (PMGSY)
–– Deen Dayal Antyodaya Yojana-National Rural Livelihoods Mission
–– Deendayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY)
–– Rural Self Employment Training Institutes (RSETIs)
–– Shyama Prasad Mukherjee Rurban Mission
–– Saansad Adarsh Gram Yojana (SAGY)

Question. The goods that are derived by exploiting natural resources are referred to as the goods of _____.
(a) primary sector
(b) modern sector
(c) secondary sector
(d) tertiary sector
Answer : A

Question. Which of the following is true for disguised unemployment?
(a) When individuals are unemployed for more than 100 days in a year, they are disguisedly unemployed.
(b) If individuals become unemployed because a country starts using new technology and the skills of workers become obsolete, they are disguisedly unemployed.
(c) If individuals become unemployed because they are changing their jobs or moving from one place to another, they are disguisedly unemployed.
(d) When individuals are engaged in some work, however, they work less than their potential, then they are disguisedly unemployed.
Answer : D

Question. The above image shows which sector of economic activities ?
(A) Tertiary Sector
(B) Primary Sector
(C) Joint Sector
(D) Secondary Sector
Answer : B

Question. Which of the following sectors is the largest producing sector in India?
(a) Primary sector
(b) Modern sector
(c) Tertiary sector
(d) Secondary sector
Answer : C

Question. Which of the following sectors is the largest producing sector in India?
(a) Primary sector
(b) Modern sector
(c) Tertiary sector
(d) Secondary sector
Answer : C

Question. Choose a method to tackle the problem of underemployment in a country.
(a) Identify, promote and locate industries and services where a large number of people can be employed.
(b) Provide debt-waiver schemes for farmers so that they can easily take loans to increase agricultural activities.
(c) The government should provide unemployment benefits to citizens.
(d) The government should focus on developing jobs in the unorganized sector as most of the people are employed in unorganized sectors.
Answer : A

Question. Which of the following is true about Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA 2005)?
(a) The government has to ensure to increase the number of jobs in unorganized sector.
(b) The government is required to provide 100 days of employment in rural areas to people who are able to and in need of work.
(c) The government has to ensure that all the unemployed individuals in rural areas must get `100 per day as unemployment benefits. 
(d) The government is required to provide free health check ups and medical facilities to unemployed people in rural areas for at least 100 days in a year.
Answer : B

Question. Which of the following best defines the gross domestic product (GDP) of a country?
(a) It is the decrease in the value of assets over a given period of time.
(b) It is the value of final goods and services produced with in the domestic territory of a country.
(d) It is the difference between value of goods imported and the value of goods exported.
(e) It is the value of all final goods and services produced by the citizens of a country within and outside the country.
Answer : B

Question. Identify the sector with the help of the following features :
(a) Registered by the government
(b) Workes enjoy security of employment.
(c) It is also called organised sector.
Answer : Public sector.

Question. The purpose of the Public Sector is not just to earn profits while activities in the sector are guided by the motive to earn profits only. 
Answer : True

Question. There has been a big change in the three sectors of economic activities in India but a similar shift has not taken place in the share of employment. 
Answer : True

Assertion and Reasoning Based Questions Mark the option which is most suitable :

(a) If both assertion and reason are true and reason is the correct explanation of assertion.
(b) If both assertion and reason are true but reason is not the correct explanation of assertion.
(c) If assertion is true but reason is false.
(d) If both assertion and reason are false.

Question. Assertion : In India, over the forty years between 1973- 74 and 2013-14, while production in all the three sectors has increased, it has increased the most in the tertiary sector. Reason : Tertiary sector is the only organized sector in the economy so the government spends a lot of money for creating jobs in tertiary sector.
Answer : (c) There are several reasons for increased production in tertiary sector such as increase in demand for education, health, communication and transportation, development of agriculture sector, increase in level of income and development of information and technology sector.

Question. Assertion : Rakesh is an educated and skilled worker who earns a high monthly salary as he is employed in a private bank in a city.
Reason : All service sectors in India are growing extremely well and each individual engaged in any kind of tertiary activity earns a high income.
Answer : (c) In India, not the entire service sector is growing equally well. Service sector in India employs many different kinds of people. At one end there are a limited number of services that employ highly skilled and educated workers. At the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair persons, transport persons, etc. These people barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available to them.

Question. Assertion : There are several goods and services that the society needs; however, the private sector does not produce all of them.
Reason : Private sector is profit driven.
Answer : (a) Some of the services such as defense require a lot of spending and do not provide any profit. Therefore, private sector does not invest in such activities. Also, certain services such as public transportation and irrigation facilities require massive spending which is beyond the capacity of private sector.

Question. Assertion : Leela works five days a week, receives her income on the last day of each month and gets medical facilities from her firm.
Reason : Leela is working in organized sector.
Answer : (a) The firms in organized sector are registered by the government and have to follow its rules and regulations which are given in various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act etc.

Question. Assertion : GDP shows how big an economy is.
Reason : GDP is the value of all goods and services produced within the domestic territory of a country in a year.
Answer : (a) GDP is the value of all final goods and services produced within a country. A higher GDP is indicative of higher production level and higher economic activity. Also, a higher GDP implies people of the country are earning more so it is indicative of the size of an economy.

Read the extract and answer the questions that follows:

There are many activities that are undertaken by directly using natural resources. Take, for example, the cultivation of cotton. It takes place within a crop season. For the growth of the cotton plant, we depend mainly, but not entirely, on natural factors like rainfall, sunshine and climate. The product of this activity, cotton, is a natural product. Similarly, in the case of an activity like dairy, we are dependent on the biological process of the animals and availability of fodder etc. the product here, milk also is a natural product. Similarly, minerals and ores are also natural products. When we produced a good by exploiting natural resources, it is an activity of the primary sector. Why primary ? This is because it forms the base for all other products that we subsequently make. Since most of the natural products we get are from agricultural, dairy, finishing, forestry, this sector is also called agriculture and related sector. The secondary sector covers activities 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. The product is not produced by nature but has to be made and therefore some process of manufacturing is essential. This could be in a factory, a workshop or at home. For example, using cotton fibre from the plant, we spin yarn and weave cloth. Using sugarcane as a raw material, we make sugar or gur. We convert earth into bricks and use bricks to make houses and buildings. Since this sector gradually became associated with the different kinds of industries that came up, it is also called as industrial sector. After primary and secondary, there is a third category of activities that falls under tertiary sector and is different from the above two. These are activities that help in the development of the primary and secondary sectors. These activities, by themselves, do not produce a good but they are an aid or a support for the productions 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 retails shops. At times, it may be necessary to store these in godowns. We also may need to talk to other over telephone or send letter (communication) or borrow money from banks (banking) to help production and trade. Transport, storage, communications, banking, trade are some examples of tertiary activities. Since these activities generate services rather than goods, the tertiary sector is also called the service sector.

Question. Which group of activities is associated directly with the natural resources ?
Answer : Primary sector is associated directly with the natural resources.

Question. What is secondary sector ? Why is called as industrial sector ?
Answer : (i) Secondary sector includes the activities which manufacture finished goods from raw materials with the help of machines.
(ii) It is also called as isndustrial sector because this sector gradually became associated with the different kinds of industries that came up.

Question. Give examples of tertiary sector. Why tertiary sector is also known as service sector ?
Answer : (i) Transport, communication, storage, banking, trade are some examples of tertiary sector.
(ii) The activities of tertiary sector generate service rather than goods. Therefore this sector is called as service sector.

Source/Extract Based Questions

Read the source given below and answer the following questions.

There are many activities that are undertaken by directly using natural resources. 
When we produced a good by exploiting natural resources, it is an activity of the primary sector. Why primary ? This is because it forms the base for all other products that we subsequently make. Since most of the natural products we get are from agricultural, dairy, finishing, forestry, this sector is also called agriculture and related sector.The secondary sector covers activities 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.
The product is not produced by nature but has to be made and therefore some process of manufacturing is essential.This could be in a factory, a workshop or at home. Since this sector gradually became associated with the different kinds of industries that came up, it is also called as industrial sector.After primary and secondary, there is a third category of activities that falls under tertiary sector and is different from the above two. These are activities that help in the development of the primary and secondary sectors. These activities, by themselves, do not produce a good but they are an aid or a support for the productions 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 retails shops. At times, it may be necessary to store these in godowns. We also may need to talk to other over telephone or send letter (communication) or borrow money from banks (banking) to help production and trade.

Answer the following MCQs by choosing the most appropriate option:

Question. The goods that are derived by exploiting natural resources are referred to as goods of _________ .
(a) primary sector
(b) modern sector
(c) secondary sector
(d) tertiary sector
Answer : (a) primary sector.

Question. Which of the following is another name for primary sector?
(a) Service sector
(b) Agriculture and related sector
(c) IT sector
(d) Industrial sector
Answer : (b) Agriculture and related sector.

Question. Which of the following is a benefit of a tertiary sector?
(a) The activities of tertiary sector help in the development of primary and secondary sector.
(b) The tertiary sector helps in the production of goods by directly using natural resources.
(c) The individuals involved in tertiary sector use better quality seeds and manure to produce agricultural goods.
(d) The individuals involved in tertiary sector buys raw materials directly from farmers to convert them into final goods.
Answer : (a) The activities of tertiary sector help in the development of primary and secondary sector.

Question. Which of the following best defines the gross domestic product (GDP) of a country?
(a) It is the decrease in the value of assets over a given period of time.
(b) It is the value of final goods and services produced with in the domestic territory of a country.
(c) It is the difference between value of goods imported and the value of goods exported.
(d) It is the value of all final goods and services produced by the citizens of a country within and outside the country.
Answer : (b) It is the value of final goods and services produced with in the domestic territory of a country.

Short Answer Type Questions

Question. Explain how public sector contributes to the economic development of a nation.
Answer :  In the following ways Public sector contributes to the economic development of a nation:

• It promotes rapid economic development through creation and expansion of infrastructure.
• It creates employment opportunities.
• It generates financial resources for development.
• It is ensuring equality of income, wealth and thus, a balanced regional development.
• It encourages development of small, medium and cottage industries.
• It ensures easy availability of goods at moderate rates.
• Contributes to community development i.e. to the Human Development Index (HDI) via health and educational services.

Question. 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 :

It is clear that while a larger portion of workers is working in the unorganized sector, the per capita earning of those in the organized sector is more. The government should encourage the entrepreneurs in the unorganized sector to change them into the organized sector.
Moreover, government should introduce some incentives so that more industries could be opened up in the organized sector. 

Question. Mr. Narendra Nathis engagedin work of construction of a small pond with 100 other workers. This might be a case of________ (Disguised unemployment/unemployment)
Answer : Disguised unemployment

Question. Laxmi is small poor farmer. What steps can be taken to help her increase production in her field?
Answer : a. Loan by bank
b. Construction of well in field by panchayat
c. Help by government to purchase tractor on low interest rate.

Question. In which category we can put a casual worker working as painter with his brother
Answer : Unorganized sector activity

Question. Give one reason to help understand why the primary sector continues to be the largest employer in 1973 as well as in 2018?
Answer : Enough jobs were created in the secondary and tertiary sectors.

Question. Define disguised unemployment in such a way that Ravi will understand it’s meaning properly.
Answer : This kind of under-employment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed. Hence it is called disguised unemployment. 5. State any one feature of the unorganised sector.
Answer : There are no provision for overtime and paid leave.

Question. Explain how “Economic activities, though grouped into three different categories, are highly interdependent.”
Answer : When we produce goods by exploiting natural resources, it is an activity of the primary sector. It is primary because it forms the base for all other products that we subsequently make.
The secondary sector covers activities in which natural products are changed into other forms manually or by machines. For example, wheat is used to manufacture bread. So, there is mutual dependency between primary and secondary sectors.
The activities that help in the development of the primary and secondary sectors fall under the tertiary sector.

Question. Why is the tertiary sector becoming so important in India?
Answer :
i. In any country several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, etc. are required. These can be considered as basic services.
ii. In a developing country the government has to take responsibility for the provision of these services and thus provide employment opportunities.
iii. The development of agriculture and industry leads to the development of services such as transport, trade, storage and the like. Greater the development of the primary and secondary sectors, more would be the demand for tertiary services.
iv. As income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools, professional training etc. We can see this change quite sharply in cities, especially in big cities.
v. Over the past decade or so, certain new services such as those based on information and communication technology have become important and essential.
vi. The production of these services has been rising rapidly.

Question. What do you understand by under employment? Why is it called disguised unemployment? Explain with an example each from urban and rural areas.
Answer :
i. If more people are employed in an activity than required it is known as under employment. In this situation of underemployment, where people are apparently working, but all of them are made to work less than their potential. The production will not be affected even if the surplus workers are thrown out.
ii. This kind of underemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed. Hence, it is also called disguised unemployment.
iii. All members in a family work in a plot of land throughout the year in rural areas since they have nowhere else to go for work. Each one is doing some work but no one is fully employed. This is the situation of underemployment.
iv. There are thousands of casual workers in the service sector in urban areas who search for daily employment. They are employed as painters, plumbers, repairpersons and others doing odd jobs.
v. Many of them do not find work daily. Similarly, there are people on the street pushing a cart or selling something where they may spend the whole day but earn very little. They are doing this work because they do not have better opportunities.

Question. Suggest a few measures that can be adopted to tackle the problem of under employment.
(Measures to solve problem of unemployment in Rural areas)
Answer :
i. The Government can spend some money or banks can give loans to improve the methods of cultivation and to absorb surplus workers in new areas.
ii. Construction of canals and dams can improve agricultural activities and create more employment opportunities.
iii. If Government invests some money in transportation and storage of crops or make better rural roads helps the farmers to sell their crops in the towns and create more job opportunities.
iv. Identify, promote and locate industries in semi-rural areas where a large number of people may be employed.
v. Adopt measures to bring all children to schools, which require more buildings, more teachers and other staff. It can create 20 lakh job opportunities in India.
vi. Development of tourism can create additional employment to 35 lakh people every year.
vii. Improve health facilities in India, which will provide a large number of employment opportunities.

Question. What is the importance of National Rural Employment Guarantee Act 2005?
Answer :
a. 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.
b. If the government fails in its duty to provide employment, it will give unemployment allowances
to the people. The types of work that would in future help to increase the production from land will
be given preference under the Act.

Question. How are activities in an economy classified based on employment conditions?
Answer : Organized Sector:
i. Organized sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work.
ii. They are registered by the government and have to follow its rules and regulations which are given in various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act,Shops and Establishments Act etc.
iii. It is called organized because it has some formal processes and procedures. Workers in the organized sector enjoy security of employment. They are expected to work only a fixed number of hours. If they work more they have to be paid overtime by the employer.
iv. They get paid leave, payment during holidays, provident fund, gratuity etc. They are supposed to get medical benefits and, under the laws, the factory manager has to ensure facilities like drinking water and a safe working environment. When they retire, these workers get pensions as well.
Unorganized Sector:
i. The unorganized sector is characterized by small and scattered units which are largely outside the control of the government.
ii. There are rules and regulations but these are not followed. Jobs here are lowpaid and often not regular.
iii. There is no provision for overtime, paid leave, holidays, leave due to sickness etc. Employment is not secure. People can be asked to leave without any reason.
iv. This sector includes a large number of people who are employed on their own doing small jobs such as selling on the street or doing repair work. Similarly, farmers work on their own and hire labourers as and when they require.