Sectors of Indian Economy : Class 10

Sectors of Indian Economy : Class 10

Hey everyone, welcome back to the blog! It’s your friend, Saumitra Chandra Pandey. I welcome you at Triple W, here to break down another important topic. Today, we’re diving into something that plays a huge role in shaping our daily lives—the different sectors of the Indian economy. Whether you’re sitting in a classroom or just curious about how things work in our country, understanding these sectors is super important. From agriculture to services, each sector has its unique place in keeping the wheels of our economy turning. So, let’s explore these sectors and see how they connect to our lives and future.Sectors of Indian Economy : Class 10 

(नमस्ते दोस्तों, ब्लॉग पर एक बार फिर आपका स्वागत है! मैं हूँ आपका दोस्त सौमित्र चन्द्र पाण्डेय . मैं आपका Triple W में आज स्वागत करता हूँ , और आज हम एक बहुत ही महत्वपूर्ण विषय पर बात करेंगे। आज हम भारतीय अर्थव्यवस्था के विभिन्न क्षेत्रों पर चर्चा करेंगे, जो हमारी रोजमर्रा की जिंदगी को आकार देने में बड़ी भूमिका निभाते हैं। चाहे आप कक्षा में बैठे हों या हमारे देश के कामकाज के बारे में जानने के लिए उत्सुक हों, इन क्षेत्रों को समझना बहुत जरूरी है। कृषि से लेकर सेवाओं तक, प्रत्येक क्षेत्र का हमारे देश की अर्थव्यवस्था को चलाने में अपना अनोखा स्थान है। तो चलिए, इन क्षेत्रों का पता लगाते हैं और देखते हैं कि ये हमारी जिंदगी और भविष्य से कैसे जुड़े हैं।)     Sectors of Indian Economy : Class 10

Sectors of Indian Economy: An Overview By Triple W

Hey everyone!  If you’re a Class 10 student, this is right out of your NCERT textbook, but whether you’re studying for exams or just curious about how our economy functions, this post will help you get a solid grasp on the basics.

What Are the Sectors of the Economy?

The Indian economy is broadly divided into three main sectors: Primary, Secondary and Tertiary. Each sector plays a distinct role in shaping the economy, contributing to employment, production, and growth. Let’s break down each one to see what they’re all about.

1. The Primary Sector: The Foundation of Our Economy

The Primary Sector is where it all begins. This sector is directly related to natural resources. Agriculture, forestry, fishing, mining, and quarrying are the backbone activities here. Essentially, anything that involves extracting resources directly from nature falls under this category.

In India, a large portion of the population still depends on agriculture for their livelihood. However, this sector, despite employing the most people, contributes the least to the country’s GDP. This is because of low productivity and traditional methods still being in use. But make no mistake, without the Primary Sector, the other sectors wouldn’t have the raw materials they need.

2. The Secondary Sector: Adding Value

Sectors of Indian Economy : Class 10

Next up is the Secondary Sector, also known as the industrial sector. Here’s where the magic of manufacturing happens. This sector takes the raw materials produced by the Primary Sector and transforms them into something more valuable. Think factories, industries, and construction work. Everything from the car you drive to the clothes you wear is a result of this sector’s work.

In recent decades, the Secondary Sector has grown significantly, contributing more to the GDP and providing better employment opportunities compared to the Primary Sector. However, it still doesn’t employ as many people, which is a point of concern for economic planners.

3. The Tertiary Sector: The Service Provider

Finally, we have the Tertiary Sector, often referred to as the service sector. This sector doesn’t produce goods directly, but it’s crucial for the functioning of the economy. It includes services like banking, education, healthcare, transportation, and more. With the rise of IT and communication technology, this sector has seen massive growth and now contributes the most to India’s GDP.

The Tertiary Sector is also where you find jobs that require more skills, offering better pay and stability. Services are essential, not just to support the other two sectors, but also to improve the quality of life for the population.

The Interdependence of Sectors

While each sector is unique, they are deeply interdependent. For example, agriculture (Primary) provides raw materials for food processing industries (Secondary), which in turn need transport and retail services (Tertiary) to get products to consumers. This interdependence keeps the economy balanced and ensures that growth in one sector can spur growth in the others.

Why Is This Important?

Understanding these sectors isn’t just about passing your exams. It’s about seeing how the journey of our economy turn and how each sector plays a role in your everyday life. Whether it’s the food you eat, the clothes you wear, or the services you use—everything connects back to these three sectors.

The NCERT textbook does a great job of explaining this, and I hope this blog helps you see the bigger picture. Remember, the Indian economy is complex, but once you get the hang of these basic concepts, you’ll start to see how it all fits together.

So there you have it—a quick yet comprehensive overview of the sectors of the Indian economy as per your Class 10th  syllabus. These sectors are not just academic concepts but the pillars that support and shape the country’s growth and development. Next time you hear terms like “Primary Sector” or “Service Sector,” you’ll know exactly what they mean and how they impact our lives.

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Here are some important Questions-Answers of this lesson given below –

Question : Do you think the classification of economic activities into primary, tertiary, and secondary is useful? Explain how?
Answer: The classification of economic activities into primary, secondary, and tertiary sectors is helpful as mentioned below :

  • It provides information on how and where the people of a country are employed. For example in India in 2000, the share of the primary sector in employment was about 60 percent e., more than other sectors.
  • It also helps in ascertaining as to which sector of economic activity contributes more or less to the country’s GDP and per capita income.
  • If the tertiary sector is developing much faster than the primary sector, then it implies that agriculture is depleting and the government must take measures to rectify this.
  • The knowledge that the agricultural profession is becoming unpopular or regressive can only come if we know which sector it belongs to.
  • It provides us information about employment conditions in different sectors. For example in India, the primary sector faces the problem of disguised unemployment. In this sector, more people are employed and even if some are removed, production will not be affected.
  • It provides us the information about progress in different sectors. For example, the importance of the tertiary sector has increased due to various factors need for basic services and the coming of IT services.
    In view of the above factors, it is necessary to classify economic activities into three sectors for smooth economic administration and development.

Question : For each of the following sectors that we came across in this chapter why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.
Answer: For each of the sectors we focus on employment and GDP due to the reasons mentioned below :

  • To know the number of people employed in that sector. For example in 2000, the share of the primary sector in employment was more than secondary and tertiary sectors.
  • To know the share of each sector in the GDP. For example in 2000, the share of the tertiary sector was more than that of the agriculture sector and secondary sector in the GDP.
  • By focusing on GDP and employment we can draw conclusions regarding the generation of new employment opportunities in various sectors and take necessary steps accordingly.
  • We come to know employment conditions for workers such as in the unorganized sector and take necessary steps to improve their condition. So that the workers are not exploited.

 Focus should be laid on other issues such as conditions of work, profit motive, efficiency, public welfare, environmentally friendly.

  • Conditions of work should be in the favour of workers.
  • The employment should be regular and the employer should follow various laws such as Factories Act, Minimum Wages Act etc.
  • The production must be for the welfare of the people who should not be exploited by raising prices or creating a scarcity of goods in the market. Thus, such issues must be examined while discussing the role of different sectors in the economy of the country.

 

Question :How is the tertiary sector different from other sectors? Illustrate with few examples.
Answer: The tertiary sector is different from other sectors as mentioned below :

  1. The activities of the tertiary sector help in the development of primary and secondary sectors.
  2. These activities, by themselves, do not produce a good, but they are an aid or support for the production process. For example, the transport system helps in taking goods from the factory to markets for the purpose of selling or storing in godowns.
  3. It provides telephones and other products for communication to the traders. Banks provide money to help production and trade.
  4. Thus transport, storage, communication etc. are not tertiary activities. On the other hand, primary sector forms the base for all products that we subsequently make. Minerals and ores are natural products which are converted into other forms by manufacturing. Sugar is made from sugarcane.

Question : What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Answer:Disguised Unemployment is a kind of unemployment in which there are people who are visibly employed but are actually unemployed. This situation is also known as Hidden Unemployment. In such a situation more people are engaged in a work than required.

For example in rural areas, this type of unemployment is generally found in the agricultural sector like – in a family of 9 people all are engaged in the same agricultural plot. But if 4 people are withdrawn from it there will be no reduction in output. So, these 4 people are actually disguisedly employed.

In urban areas, this type of unemployment can be seen mostly in service sectors such as in a family all members are engaged in one petty shop or a small business which can be managed by less number of persons.

Question : Distinguish between open unemployment and disguised unemployment.
Answer : Open Unemployment – When a country’s labour force do not get opportunities fro adequate employment, this situation is called open unemployment. This type of unemployment is generally found in the industrial sector of our country. This is also found among the landless agricultural labourers in rural areas.

Disguised Unemployment – This is a kind of unemployment in which there are people who are visibly employed but actually they don’t have full employment. In such a situation more people are engaged in a work than required. This type of unemployment is generally found in unorganized sector where either work is not constantly available or too many people are employed for the same work that does not require so many hands.

Question : Tertiary sector is not playing any significant role in the development of Indian economy. Do you agree/ Give reasons in support of your answer?
Answer: “The tertiary sector is not playing any significant role in the development of Indian economy” is partially correct due to reasons as mentioned below :

The share of tertiary sector in employment has not increased in proportion to its increase in production. In 2000, the production in service sector rose by 11 times, whereas employment has risen less than three times. Therefore, still more than half of the workers in the country are working in the primary sector.

New services such as based on information technology have become important, but not all the services of the service sector are growing well. At one end are highly skilled and educated workers but on the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair Arsons, transport persons. These persons barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available to them. Such persons can not play any important role in the development of the Indian economy. It is this part of service sector that is not growing in importance.

Question : Service sector in India employs two different kinds of people. Who are these?
Answer: The service sector in India employs the following two different kinds of people. They are:
(i) The people involved in the services that may directly help in the production of goods. For example, people involved in the transportation, storage, communication, finance etc.
(ii) The people involved in such services that may not directly help in the production of goods e.g. teachers, doctors, barbers, cobblers lawyers etc. They may be termed as ancillary workers means those who give services to the primary service providers.

Question : Workers are exploited in the unorganized sector. Do you agree with this view.? Give reasons in support of your answer.
Answer: Yes, workers are exploited in the unorganized sector. This would be clear from the following points:

  1. There is no fixed number of working hours. The workers normally work 10 – 12 hours without paid overtime.
  2. They do not get other allowances apart fro the daily wages.
  3. Government rules and regulations to protect the labourers are not followed there.
  4. There is no job security.
  5. Jobs are low paid the workers in this sector are generally illiterate, ignorant and unorganized. So they are not in a position to bargain or secure good wages.
  6. Being very poor they are always heavily in debt. So, they can be easily made to accept lower wages.

Question : How are the activities in the economy classified on the basis of employment conditions?
Answer: On the basis of employment conditions, the activities in the economy are classified into organized and unorganized sectors –

Organized Sector :This sector covers those enterprises which are registered by the government and have to follow its rules and regulations. For example, Reliance Industries Ltd., GAIL etc.

Unorganized Sector : It includes those small and scattered units which are largely outside the control of the government. Though there are rules and regulations but these are never followed here. For example, casual workers in construction, shops etc. In this sector there is no job security and the conditions of employment are also very tough.

Question : Compare the employment conditions prevailing in the organised and unorganised sectors.
Answer: The employment conditions prevailing in the organised and unorganised sectors are vastly different. The organised sector has companies registered with the government and hence, it offers job security, paid holidays, pensions, health and other benefits, fixed working hours and extra pay for overtime work. On the other hand, the unorganised sector is a host of opposites. There is no job security, no paid holidays or pensions on retirement, no benefits of provident fund or health insurance, unfixed working hours and no guarantee of safe work environment.

Question : Explain the objective of implementing the NREGA 2005.
Answer: The objective of implementing the NREGA 2005 i.e., National Rural Employment Guarantee Act 2005 are :-

  1. To implement the right to work.
  2. The Act has to be implemented in 200 districts.
  3. Under this Act, 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.
  4. If the government fails in its duty to provide employment, it will give unemployment allowance to the people.
  5. The types of work that would in future help to increase the production from land will be given preference under this Act.

Question :Using examples from your area compare and contrast the activities and functions of private and public sectors.
Answer:
The activities and functions of private and public sectors in our area may be compared as mentioned below :

Private Sector Public Sector
(1) The vegetable shops, grocery shops, sweet shops etc. are in private sector. (1) Mother Dairy booths which sell vegetables, fruits, milk and milk products are in public sector.
(2) These are owned by private individuals. (2) These are owned by public sector undertaking ‘Mother Dairy’
(3) Vegetables and other products are generally of good quality. (3) The vegetables and fruits are generally of average or poor quality.
(4) The rates may be slightly higher (4) The rates are lower than the market rates.
(5) The companies like Reliance, Tata, Airtel provide telephone and TV services which are of very good standard. (5) MTNL provides telephone services. There are complaints against their services. On many occasions, telephones remain out of order, hut they do not charge for that period.
(6) The shopkeepers provide free home delivery service without any extra-charge. (6) Mother Dairy or any other public under taking do not provide free home delivery service.
(7) Private schools provide education of good quality. Their students are well-dressed and disciplined. Their medium of in structions is always English. (7) The schools run by MCD do not provide quality education. Their students are not well-dressed and disciplined. Their medium of instructions is generally Hindi.

Question : Give three examples of Public Sector activities and explain why the government has taken up them.
Answer: Some examples are given below:
Railways: The government has taken up it for the following reasons –
1. Only the government can invest large sums of money on the public project with long gestation period.
2. To ensure and provide transportation at cheap rate.
NTPC: The government has taken up it to provide electricity at a lower rate than the actual cost of production. The aim is to protect and encourage the private sector especially small scale industries.
AIIMS: To provide quality health services at reasonably cheap rate was the main purpose of the government to start this.

Question : Explain how Public sector contributes to the economic development of a nation.
Answer: Public sector contributes to the economic development of a nation in the following manners:

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

Question : The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples?
Answer: The workers in the unorganised sector need protection on the following issues: wages, safety and health. In the construction sector, labourers are employed on a daily basis. Hence, they have no job security. Here, wages too differ from time to time. Consequently, the government has set up a minimum wages act to protect such workers from economic exploitation.

The same problem exists for miners working in private mining companies. Their safety is secondary to the company’s profits, and as a result, many miners suffer grievous injuries (and many a times, even die) due to inadequate safety gear and norms. Governments of most nations have now laid down strict rules for private enterprises to ensure workers’ safety.

Most companies in the unorganised sector do not provide health insurance to their employees. Some of these might be involved in dangerous factory production that may harm a worker’s health in the long term. These workers need to be protected against the tyranny of the employer, and it is here that the government steps in.

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: Ways to generate more employment in the city of Ahmedabad have to be provided by the government, especially in the unorganised sector. As the table shows, the organised sector’s earnings are much higher than that of the unorganised sector even though the latter employs almost 80% of the city workers. More companies need to be brought under the roof of the organised sector so that workers from the unorganised sector are attracted to jobs there, with higher and more secure wages. For this, the government must provide loans and aid to companies transferring from unorganised to organised sectors.

Multiple Choice Questions

The sectors are classified into public and private sector on the basis of:
(i) employment conditions
(ii) the nature of economic activity
(iii) ownership of enterprises
(iv) number of workers employed in the enterprise

Production of a commodity, mostly through the natural process, is an activity in ______________ sector.
(i) primary
(ii) secondary
(iii) tertiary
(iv) information technology

GDP is the total value of _____________ produced during a particular year.
(i) all goods and services
(ii) all final goods and services
(iii) all intermediate goods and services
(iv) all intermediate and final goods and services

In terms of GDP the share of tertiary sector in 2003 is _________
(i) between 20 per cent to 30 per cent
(ii) between 30 per cent to 40 per cent
(iii) between 50 per cent to 60 per cent
(iv) 70 per cent

The sectors are classified into public and private sector on the basis of: 
(a) Employment conditions
(b) The nature of economic activities
(c) Number of workers employed
(d) Ownership of enterprises

The value of all final goods and services produced within a country during a particular year is called as: 
(a) Gross Domestic Product
(b) Net Domestic Product
(c) National Product
(d) Production of Tertiary Sector

The service sector includes activities such as 
(a) agriculture, dairy, fishing and forestry
(b) making sugar, gur and bricks
(c) transport, communication and banking
(d) None of these

Choose the correct meaning of organised sector
(a) It covers those enterprises where the terms of employment are regular.
(b) It is outside the control of the government.
(c) Jobs are not regular.
(d) It provides low salaries.

Underemployment occurs when people
(a) do not want to work
(b) are working in a lazy manner
(c) are working less than what they are capable of doing
(d) are not paid for their work

When we produce a good by exploiting natural resources, it is an activity of the
(a) Secondary sector
(b) Tertiary sector
(c) Primary sector
(d) Organised sector

Natural products are changed into other forms through ways of manufacturing
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) Unorganised sector

Which of the following is included in tertiary sector?
(a) ATM booths
(b) Call centres
(c) Internet cafe
(d) All of them

 

Only ………… are included to know the total production in each sector.
(a) Final goods and services
(b) Intermediate goods
(c) Only goods
(d) Only services

At the initial stages of development, ………………. was the most important sector of economic activity
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) Organised sector

In the past 100 years, there has been a further shift from secondary to ……………. in developed countries.
(a) Primary sector
(b) Organised sector
(c) Tertiary sector
(d) Unorganised sector

Mention the largest producing sector in 2003 in India ?
(a) Primary
(b) Secondary
(c) Tertiary
(d) Unorganised sector

Name the sector which continues to be the largest employer even in the year 2000.
(a) Secondary
(b) Primary
(c) Tertiary
(d) Banking section

A situation in which more persons are employed on a job than are optimally required.
(a) Structural unemployment
(b) Disguised unemployment
(c) Cyclical unemployment
(d) Seasonal unemployment

A study conducted by the planning commission estimates that the following number of jobs can be created in the education sector alone.
(a) 20 lakhs
(b) 15 lakhs
(c) 18 lakhs
(d) 25 lakhs

Out of 200 million children in the school going age group, how many are attending schools?
(a) One – fourth
(b) Half
(c) Two – thirds
(d) One – fifth

According to planning commission, if tourism as a sector is improved, every year we can give additional employment to people more than
(a) 25 lakhs
(b) 30 lakhs
(c) 32 lakhs
(d) 35 lakhs

Central government in India made a law, implementing the Right to Work in how many districts of India ?
(a) 150 districts
(b) 200 districts
(c) 250 districts
(d) 300 districts

Under NREGA 2005, how many days of work, in a year are guaranteed by the government?
(a) 100 days
(b) 120 days
(c) 90 days
(d) 99 days

Enterprises or places of work where the terms of employment are regular and people have assured work comes under
(a) Primary sector
(b) Organised sector
(c) Unorganised sector
(d) Tertiary sector

Percentage of people in the unorganised sector in tertiary sector is …………………..
(a) 67 %
(b) 76 %
(c) 51 %
(d) 75 %

In the rural areas, the unorganised sector mostly comprises of
(i) Landless agricultural labourers
(ii) Garment makers
(iii) Street vendors
(iv) Sharecroppers and artisans
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (iii) and (iv)
(d) (i) and (iv)

Which of them does not generally find itself in the unorganised sector ?
(a) Scheduled castes
(b) Scheduled tribes
(c) Rich families
(d) Backward communities

Government owns most of the assets and provides all the.services
(a) Private Sector
(b) Public Sector
(c) Organised Sector
(d) Tertiary Sector

There are large number of activities like providing health and education which are the primary responsibility of
(a) Primary sector
(b) Private companies
(c) Government
(d) Secondary sector

………………………………………………………………………………………………………

Fill in the blanks using the correct option given in the bracket:

(i) Employment in the service sector has not increased to the same extent as production. (has / has not)
(ii) Workers in the tertiary sector do not produce goods. (tertiary / agricultural)

(iii) Most of the workers in the organised sector enjoy job security. (organised / unorganised)

(iv) A large proportion of labourers in India are working in the unorganised sector. (large / small)
(v) Cotton is a natural product and cloth is a manufactured product. (natural / manufactured)
(vi) The activities in primary, secondary and tertiary sectors are interdependent. (independent / interdependent)

That’s all for today, folks! Stay tuned for more insights and keep learning with Triple W. Until next time, keep exploring, keep questioning, and keep growing!

I hope you find this blog post helpful for understanding the sectors of the Indian economy in a way that goes beyond just the textbook!

 

Sectors of Indian Economy : Class 10

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