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Understanding Economic Activity Sectors
All activities that give an income in return are called economic activities.These activities 
can be classified into different sectors based on the nature of their work.
The Major Sectors 
Primary Sector
Goods produced by 
exploiting natural 
resources
Agriculture and related 
activities
Cotton cultivation, farming
Direct use of natural 
resources
Secondary Sector
Transformation of one 
good into another
Manufacturing industries
Sugarcane into sugar
Processing raw materials
Tertiary Sector
Services supporting 
primary and secondary 
sectors
Also known as service 
sector
Doctors, teachers, lawyers
Transportation, banking
Sector Interdependence
These three sectors are highly interdependent on one another. Consider this example: 
farmers buy tractors and fertilizers (secondary sector) to produce crops (primary sector), 
then need transport services (tertiary sector) to sell their produce.
Measuring Economic Output
We measure sectors by the value of final goods and services produced rather than 
counting individual items. The sum of all three sectors gives us the Gross Domestic Product 
(GDP) of a country. The tertiary sector has emerged as the largest because it supports the 
development of primary and secondary sectors.
1
Primary Sector Production
Raw materials and natural resources
2
Secondary Sector Manufacturing
Processing and transformation
3
Tertiary Sector Services
Supporting services and final delivery
4
GDP Calculation
Total value of all sectors combined
Organization Types
Organised Sector
Regular employment terms
Government registered
Follow rules and regulations
Job security provided
Unorganised Sector
Small and scattered units
Outside government control
Rules not properly implemented
Employment is not secure
Ownership Categories
Public Sector
Owned, controlled, and managed by 
government. Guided by social welfare 
motive rather than profit.
Private Sector
Owned by private individuals. Activities 
guided by profit motive. Examples: TISCO, 
Reliance Industries.
Employment Concepts
Employment
Activity from which a 
person earns means of 
living - income in cash or 
kind
Unemployment
When people who can 
work and are willing to 
work fail to secure work
Underemployment
Workers get less work time 
than they can handle - 
unemployed for some 
months or hours
Creating More Employment
From 1973 to 2000, GDP increased significantly but employment didn't grow proportionally. 
The government can create more jobs by:
Better Infrastructure
Building roads, dams, canals, and other essential infrastructure
Enhanced Services
Providing banks, transport, and communication services
Processing Industries
Setting up industries that process agricultural products like potatoes, rice, wheat
Semi-Rural Industries
Locating industries in semi-rural areas to provide local employment
NREGA 2005 - Employment Guarantee
The Mahatma Gandhi National Rural Employment Guarantee Act-2005 implements "Right 
to Work" across all districts in India. Under this act, all those who can work and need work 
are guaranteed 100 days of employment per year by the government.
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FAQs on Infographics: Sectors of the Indian Economy - Social Studies (SST) Class 10

1. What are the three main sectors of the Indian economy?
Ans. The three main sectors of the Indian economy are the primary sector, secondary sector, and tertiary sector. The primary sector involves agriculture and extraction of natural resources, the secondary sector includes manufacturing and industrial activities, while the tertiary sector encompasses services such as healthcare, education, and finance.
2. How does the primary sector contribute to the Indian economy?
Ans. The primary sector plays a crucial role in the Indian economy as it provides employment to a large portion of the population, especially in rural areas. It contributes to food security and supplies raw materials for the secondary sector. This sector also supports various allied activities like agro-based industries and has a significant impact on the overall GDP.
3. What is the significance of the secondary sector in India?
Ans. The secondary sector is significant because it is responsible for transforming raw materials into finished goods, thereby adding value to the economy. It includes manufacturing industries, construction, and power generation. This sector has the potential to create jobs, boost exports, and enhance technological advancements, contributing to economic growth.
4. Can you explain the role of the tertiary sector in the Indian economy?
Ans. The tertiary sector is essential for providing services that support both the primary and secondary sectors, as well as catering to consumer needs. It includes industries such as retail, hospitality, information technology, and finance. The growth of this sector is vital for economic development, as it accounts for a significant portion of GDP and employment in urban areas.
5. How has the composition of sectors in the Indian economy changed over time?
Ans. Over time, the composition of sectors in the Indian economy has evolved, with a noticeable shift from the primary sector to the tertiary sector. While agriculture dominated the economy in the past, industrialization and urbanization have led to an increase in the secondary and tertiary sectors. This transition reflects advancements in technology, changes in consumer preferences, and globalization, contributing to a more service-oriented economy.
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