DOLPHIN PUBLIC SCHOOL

Class 10 Social Science

Economics Chapter-02 The sector of Indian Economy

Revision Notes

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.

The central government in India made a law implementing the Right to Work in
about 625 districts of India, which is called Mahatma Gandhi National Rural
 Employment Guarantee Act (MGNREGA) 2005. Under MGNREGA 2005,
all those who are able to, and are in need of work in rural areas are 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.

 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.

 A study conducted by the Planning Commission (known as NITI Aayog)

estimates that nearly 20 lakh jobs could be created in the education sector
alone.

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.

Organised Sector Unorganised Sector

It is a sector where the employment terms are fixed The unorganised sector is
and regular, and the employees get assured work. characterised by small and
scattered units, which are largely
outside the control of the
government.

They are registered by the government and have to There are rules and regulations
follow its rules and regulations, which are given in but these are not followed since
various laws such as the Factories Act, Minimum they are not registered with the
Wages Act, Payment of Gratuity Act, Shops and government.
Establishments Act, etc.

The job is regular and has fixed working hours. If Jobs are low-paid and often not
people work more, they get paid for the overtime by regular.
the employer.

Workers enjoy the security of employment. Employment is not secure.

People can be asked to leave
without any reason.

People working in the organised sector get several There is no provision for
other benefits from the employers such as paid leave, overtime, paid leave, holidays,
payment during holidays, provident fund, gratuity, leave due to sickness, etc.
etc.

People get medical benefits. The factory manager There are no such facilities in the
has to ensure facilities like drinking water and a safe unorganised sector.
working environment. When they retire, these
workers get pensions as well.

Examples of the organised sectors are Government Examples of the unorganised

employees, registered industrial workers, Anganwadi sectors are Shopkeeping,
workers, village health workers, etc. Farming, Domestic works,
Labouring, Rickshaw pulling,
etc.
  Where are Most People Employed

Primary Sector Secondary Sector Tertiary Sector

More than half of the workers in India are These sectors employ less than half the
working in the primary sector, mainly in people as compared to the primary sector.
agriculture.

It contributes to only a quarter of the These sectors produce four-fifths of the

GDP. product.
Public Sector Private Sector

In the public sector, the government In the private sector, ownership of assets and
owns most of the assets and delivery of services is in the hands of private
provides all the services. individuals or companies.

Railways or post office is an Companies like Tata Iron and Steel Company
example of the public sector. Limited (TISCO) or Reliance Industries Limited
(RIL) are privately owned companies.

The purpose of the public sector is Activities in the private sector are guided by the
not just to earn profits. Its main aim motive to earn profits.
is public welfare.

GOVERNMENT RESPONSIBILITIES:
There are a large number of activities, which are the primary responsibility of
the government. Here, we have listed a few of them:

1. Government raises money through taxes and other ways to meet expenses
on the services rendered by it.
2. Governments have to undertake heavy spending such as the construction
of roads, bridges, railways, harbours, generating electricity, providing
irrigation through dams, etc. Also, it has to ensure that these facilities are
available for everyone.
3. There are some activities, which the government has to support to
encourage the private sector to continue their production or business.
4. The government in India buys wheat and rice from farmers at a ‘fair
price’ and sells at a lower price to consumers through ration shops. In this
way, it supports both farmers and consumers.
5. Running proper schools and providing quality education, health and
education facilities for all are some of the duties of the government.
6. Government also needs to pay attention to aspects of human development
such as availability of safe drinking water, housing facilities for the poor
and food and nutrition, taking care of the poorest and most ignored
regions of the country.