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Class 10 Economics Chapter 2 Notes - Sectors of the Indian Economy

Sectors of Economic Activities

Sectors are communities of individuals engaged in various activities, including creating goods or services. These economic activities generate income and profit. For instance, a farmer cultivates crops to sell for profit, while an industry produces goods or services for consumers to make money.

Different Areas of the Indian Economy

  1. Primary Sector: This sector involves the creation of products by extracting and gathering natural resources. Activities such as farming, forestry, hunting, fishing, and mining are part of this sector.
  2. Secondary Sector: This sector involves activities that transform natural materials into new products through various manufacturing processes. It follows the primary sector and requires several production stages. It's also known as the industrial sector. For instance, we make cloth from the cotton fibre of the plant by spinning yarn. Similarly, we use sugarcane as a fundamental ingredient to produce sugar or Gur.
  3. Tertiary Sector: This sector includes activities that support the growth of the primary and secondary sectors. These activities don't produce a good directly, but they assist or support the production process. It's also referred to as the service sector. Examples include teachers, doctors, laundry workers, barbers, shoe repairers, lawyers, call centres, software companies, and so forth.

Class 10 Economics Chapter 2 Notes - Sectors of the Indian EconomyDifference Between the Three Sectors of the Economy

How do we count the various goods and services and know the total production in each sector?

Gross Domestic Product (GDP) 

  • To include value of final goods and services including the value of all the intermediate goods
  • GDP - sum of production of three sectors in a year
  • Task of measuring GDP by a ministry with the help of various govt, departments of all States and Union Territories.

Class 10 Economics Chapter 2 Notes - Sectors of the Indian Economy

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Historical Changes in Sectors

  • The primary sector was the most important sector of economic activity in a country throughout its early phases of development.
  • The agriculture sector began to generate significantly more food than before due to technological advancements in farming processes.
  • People began working in factories. Some people are also involved in the transportation industry.
  • The secondary sector gradually became the most important in the economy and employment.
  • Various food processing, equipment manufacturing, and textiles industries are present.
  • This resulted in establishing of banking, health care, and education services.
  • In terms of total production, the service industry has overtaken manufacturing as the most significant sector, and it has begun to employ more people. 

Where are Most of the People Employed?

The tertiary sector overtook the primary sector as India's largest producing sector in 2013-14. The tertiary sector in India has been increasingly important for the following reasons:

  1. Hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defense, transportation, banks, insurance businesses, and other services are considered vital for everyone.
  2. Agriculture and industry expansion lead to the expansion of services such as transportation, commerce, and storage.
  3. As people's incomes rise, they expect more luxuries like dining out, tourism, shopping, private hospitals, private schools, professional training, and so on.
  4. During the recent decade, several new information and communication technology-based services have become increasingly important and indispensable.

Disguised Unemployment: Unemployment is the only aspect of the economy that has no bearing on overall output. When productivity is low and there are too many people for too few jobs, this happens. It can apply to any group of people that aren't working to their full potential.

How to Create More Employment?

  • People can find work by locating industries and services in semi-rural areas and identifying, advertising, and locating them. 
  • Every state or region has the potential to boost its residents' income and job opportunities. 
  • Tourism, regional craft industries, and emerging services like IT can all help. 
  • According to NITI Aayog, research undertaken by the Planning Commission, approximately 20 lakh employments can be produced in the education sector alone.
  • In 2005, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was enacted by the central government of India to implement the Right to Work in about 625 districts across the country. 

Class 10 Economics Chapter 2 Notes - Sectors of the Indian Economy

MGNREGA

  • It is primarily used by people living in rural areas who can and are willing to work
  • Every year, the MGNREGA gives at least 100 work days to rural households that voluntarily volunteer to conduct unskilled work.
  • The MGNREGA scheme is open to any Indian citizen over the age of 18 who lives in a rural area.
  • Another goal of the MGNREGA act is to give rural communities long-term assets such as roads, wells, and ponds.
  • If the government fails to produce jobs, the people will be forced to rely on unemployment benefits.
  • It is implemented without the use of contractors or agents in gram panchayats.
  • This law aids in the preservation of the village environment, the empowerment of rural women, the promotion of social equality, the reduction of migration to urban regions, and the provision of essential services, among other things. 

Different Sectors in Terms of Operations

1. Organized Sector: 

  • Organized sectors are those that provide fixed and secure employment as well as work for a limited amount of time to their employees based on their motivation and qualifications.
  • These industries adhere to the government's norms and regulations.
  • Employees in the organized sector have job security.

2. Unorganized Sector: 

  • The government seems to have little influence over the unorganized sector.
  • Workers in the unorganized sector do not have the same level of job security as those in the organized sector.
  • Overtime work is not compensated in any way. 

How to Protect Workers in Unorganised Sector?

There is a need for workers in the unorganized sector to be protected and supported. Here are a few pointers to get you started.

  • The government has the authority to set the minimum pay and working hours.
  • Self-employed workers can get low-cost loans from the government.
  • The government can supply these workers with low-cost, accessible fundamental amenities such as education, health care, and food.
  • The government can enact new legislation that allows for overtime, paid leave, and sick leave, among other things.

Different Sectors in Terms of Ownership

1. Public Sector: 

  • The government controls most assets and is responsible for all services in the public sector.
  • The public sector's goal isn't only to make money. Its main goal is to benefit the general population.
  • The public sector includes things like railways and post offices.

2. Private Sector:

  • Asset ownership and service delivery are in the hands of private individuals or corporations in the private sector.
  • Profit is the primary motivator for private-sector activity.
  • Tata Iron and Steel Company Limited (TISCO) and Reliance Industries Limited are two privately held companies (RIL).
The document Class 10 Economics Chapter 2 Notes - Sectors of the Indian Economy is a part of the Class 10 Course Social Studies (SST) Class 10.
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FAQs on Class 10 Economics Chapter 2 Notes - Sectors of the Indian Economy

1. What are the three sectors of economic activities?
Ans. The three sectors of economic activities are the primary sector, the secondary sector, and the tertiary sector.
2. How do the three sectors of economic activities compare with each other?
Ans. The primary sector involves the extraction and production of raw materials, the secondary sector involves manufacturing and processing, and the tertiary sector involves the provision of services. These sectors differ in terms of the nature of work, employment opportunities, and contribution to the GDP.
3. What is the difference between organized and unorganized sectors?
Ans. The organized sector refers to industries and enterprises that are registered, regulated, and have a formal structure. The unorganized sector, on the other hand, includes small-scale and informal enterprises that are not regulated or registered.
4. How are sectors classified in terms of ownership?
Ans. Sectors can be classified into public and private sectors based on ownership. The public sector includes industries and enterprises owned and operated by the government, while the private sector includes industries and enterprises owned and operated by private individuals or organizations.
5. How do the sectors of the Indian economy contribute to its overall development?
Ans. The primary sector contributes to the economy by providing raw materials, the secondary sector adds value to these raw materials through manufacturing, and the tertiary sector provides services and contributes to employment and GDP growth. All three sectors are important for the overall development of the Indian economy.
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