Introduction
In our daily lives, we see people doing different types of work to earn money. These activities, which create value in terms of money, are called economic activities. In earlier times, most people were involved in simple activities like farming, raising animals, or making tools and clothes. But as societies grew and developed, the types of work people do have greatly increased.
Today, economic activities include a wide range of jobs such as making computers, working in banks and schools, driving vehicles, creating software, and repairing household appliances. By classifying these activities, we can better understand how they work and how they are connected to each other. This helps us see the variety of ways people contribute to the economy.
The Classification of Economic Activities into Economic Sectors
Did the three main economic sectors include primary, secondary, and tertiary sectors?
Yes, Economic activities are divided into sectors like primary (raw materials), secondary (manufacturing), and tertiary (services), based on the nature of the work involved.
Economic activities that have similar characteristics can be grouped together into broader categories known as economic sectors. There are three main types of economic sectors: primary, secondary, and tertiary.
A. Primary Activities
- Primary activities, also known as primary sector economic activities, involve direct dependence on nature to produce goods.
- Examples include cultivating grains and vegetables on farms, collecting wood from forests, extracting coal from mines, catching fish from fisheries, gathering eggs from poultry farms, etc.
- The most common primary activities are agriculture, mining, fishing, raising livestock, and forestry .
- These activities form the foundation of the economy by providing raw materials and basic goods needed for further production.
B. Secondary Activities
- Economic activities that rely on the outputs of the primary sector and transform them into goods are known as secondary activities or secondary sector economic activities.
- The secondary sector includes the construction of buildings, roads, and the provision of utilities such as water, electricity, and gas. It also involves the manufacturing of products in factories and production units that process raw materials from the primary sector into forms that can be sold or consumed.
- Here are some key points about secondary sector activities:
- Processing of Agricultural Products: Grains obtained from agricultural fields are processed into flour in mills.
- Extraction and Processing: Oil is extracted from groundnuts, and tea leaves are processed to make tea.
- Wood Processing: Wood from forests is transformed into furniture and paper.
- Cotton Processing: Cotton is used to manufacture clothes.
- Metal Processing: Steel, derived from iron ore, is used to produce automobiles such as cars and trucks.
C. Tertiary Activities
- Tertiary activities, also known as the tertiary sector, encompass economic activities that provide essential support to individuals engaged in primary and secondary activities.
- These activities involve services that may not be immediately visible but play a crucial role in our daily lives.
- Examples of Tertiary Activities:
- Transportation services, such as truck drivers who transport grains and vegetables from farms to factories or markets.
- Retail services, including fruit and vegetable vendors who sell farm produce to households.
- Professional services offered by doctors, nurses, teachers, lawyers, and pilots.
- Repair and maintenance services provided by technicians for electronic items like mobile phones and televisions, mechanics for vehicles such as cars and tractors, and electricians ensuring a regular supply of electricity.
- Communication services through mobile and internet, software development, and various services at hotels, restaurants, banks, schools, hospitals, airports, shops, and warehouses.
Question for Chapter Notes: Economic Activities Around Us
Try yourself:
Which sector of economic activities involves directly working with nature to produce goods?Explanation
- Primary activities involve direct dependence on nature to produce goods.
- Examples of primary activities include agriculture, mining, fishing, raising livestock, and forestry.
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Interdependence Among Sectors
- The primary, secondary, and tertiary sectors play a crucial role in transforming natural resources into finished goods.
- For Example, In a village in Anand district, Gujarat, we can observe how these sectors work together and depend on each other in the process of production.
Dairy Cooperative: From Farm to Plate
- Farmers in Gujarat start their day with the sound of milk pails and the happy moos of their cows or buffaloes. Cows are very important to these farmers and their families. The farmers milk their cows and sell the milk to a nearby dairy. At the end of the month, they get paid for the milk based on how much and how good it is. But this wasn’t how it was 50 years ago.
- Let’s hear the story of AMUL, a milk cooperative. In the 1940s, farmers in Anand district had to sell their milk to nearby villages. They had to walk or ride their bicycles in the hot sun to sell the milk. Since milk spoils quickly in the heat, they had to sell it fast. This was a lot of hard work for a little bit of money. The farmers relied on middlemen who bought milk from them at low prices and sold it in the market. Sometimes, the farmers felt cheated by these middlemen.
- One day, the farmers went to Sardar Vallabhbhai Patel, a famous leader, to talk about their problems. He suggested that they form a cooperative to work together and stop depending on middlemen. By joining forces, they could handle the milk collection, processing, and distribution themselves.
- Following Patel's advice, AMUL was established in 1946, led by Tribhuvandas Patel and Dr. Varghese Kurien. This cooperative united farmers, including women, giving them control over milk production and sales. They made their own decisions about production, pasteurization, and sale of milk. Working together helped them increase their income and become self-sufficient.
- As more farmers joined, the cooperative grew. They collected so much milk that they started making other products. They built a factory in Anand to produce butter and milk powder.
Today, AMUL makes a wide range of products in factories across India. These products are sold in stores all over the country and even exported to other countries.
- Primary Sector Economic Activity: The farmers milk their cows, which is a primary sector activity because milk comes directly from a natural source (cows).
- Secondary Sector Economic Activity: The milk is processed into products like milk powder, ghee, cheese, and butter, which is a secondary sector activity.
- Tertiary Activity: AMUL transports its products using trucks, trains, air , and ships . It sells the products through retail stores and supplies to shops in towns, cities, and villages across India.
What is a cooperative?
A cooperative is a group of people who work together to do something better than they could alone. For example, farmers might join together to sell their milk directly to stores, cutting out middlemen and getting a fair price. By working as a team, they can make more money and have more control over their products.
What is pasteurization?
Pasteurization is a process used to make milk and other liquids safe to drink. It involves heating the liquid to a high temperature for a short time and then cooling it quickly. This helps to kill harmful bacteria and makes the milk safe for people to consume.
Cooperatives in India - Just like AMUL, there are many other milk cooperatives in India that produce and sell milk and dairy products under different brand names.
- Some of these cooperatives include: Nandini from Karnataka, Mother Dairy from Delhi-NCR, Aavin from Tamil Nadu, Vijaya from Andhra Pradesh, Kevi from Nagaland, Sudha from Bihar, Verka from Punjab
- These cooperatives play an important role in helping groups likefarmers ,persons with disabilities , andwomen come together.
- By working together in these cooperatives, these groups can achieve greaterprosperity and improve their livelihoods.
Recycling Used Paper Nowadays, used paper is recycled to create new paper products.
Benefits of Recycling Paper:
- Recycling just one tonne of paper can save 17 trees.
- It also helps save 2.5 cubic metres of landfill space, which is where waste is dumped.
- Recycling paper uses 70% less energy and water compared to making new paper from wood pulp.
Conclusion
Understanding the classification of economic activities into primary, secondary, and tertiary sectors is like discovering the secret recipe of a delicious dish. Each sector adds its own unique flavor, and together, they create a balanced and thriving economy. The primary sector provides the raw ingredients, the secondary sector cooks and prepares them, and the tertiary sector serves and delivers them to us. This interdependence ensures that our economy functions smoothly, and every job, from farming to teaching, plays a vital role.
Key Words
- Monetary value: Value of something that can be measured in terms of money.
- Economic Sectors: Broad groups that include various activities that help with the economic prosperity of a nation.
- Primary sector: The group of activities that involves extraction of raw materials directly from nature such as farming, fishing, forestry, etc.
- Secondary sector: The group of activities that involves processing of raw materials derived from primary sector into products for sale or consumption.
- Tertiary Sector: The group of activities that involves the provision of services which complement both primary and secondary sectors, such as transportation, banking, and management of business.
- Warehouses: Large buildings used for storing products before they are sold, used or rented out to shops.
- Dairy: A place where milk is collected and stored.
- Cooperative: A group of people who voluntarily come together to meet their economic and social needs in a formal way. They own the cooperative and decisions are taken by the members collectively.
- Middlemen: Persons who buy goods from producers and sell them to consumers. The middlemen charge a fee for this service.
- Pasteurisation: A process by which milk is preserved through heating to a specific temperature to kill harmful bacteria.
- Factory: Building or group of buildings where goods are manufactured, or various components are put together, to make a final product.
- Retail: The sale of goods in small quantities for use by the end consumer rather than for resale.
- Export: Goods and services that are produced in one country and sold to buyers or consumers in another country.
Question for Chapter Notes: Economic Activities Around Us
Try yourself:
What is the primary sector of economic activity?Explanation
- The primary sector involves activities related to the extraction and production of natural resources.
- Growing crops on a farm falls under the primary sector as it involves directly utilizing natural resources like soil, water, and sunlight for production.
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