Chapter - 2, Sectors of Indian Economy
Solutions of NCERT Textbook Exercise
Q.1: Fill in the blanks using the correct option given in the bracket:
(i) Employment in the service sector ______ increased to the same extent as production.
(ii) Workers in the ___________ sector do not produce goods.
(iii) Most of the workers in the _________ sector enjoy job security.
(iv) A _________ proportion of labourers in India are working in the unorganized sector.
(v) Cotton is a ___________ product and cloth is a_________ product.
(vi) The activities in primary, secondary and tertiary sectors are __________.
Ans: (i) has not (ii) tertiary (iii) organized (iv) large (v) natural, manufactured (vi) interdependent
Q.2: Choose the most appropriate answer:
(a) The sectors are classified into public and private sector on the basis of:
(b) Production of a commodity mostly through the natural process is an activity in ________ sector.
(c) GDP is the total value of __________ produced during a particular year.
(d) In terms of GDP the share of tertiary sector, in 2003 is ____________.
Ans: (a) ownership of enterprise (b) primary (c) all final goods and services (d) between 50 percent and 60 percent.
Q.4: Find the odd one out and say why.
(i) Tourist guide, dhobi, tailor, potter.
(ii) Teacher, doctor, vegetable vendor, lawyer.
(iii) Postman, cobbler, soldier, police constable.
(iv) MTNL, Indian Railways, Air India, Sahara Airlines, All India Radio.
Ans: (i) Potter, because only the potter relates to secondary sector.
(ii) Vegetable vendor, since only this directly help in the production of goods.
(iii) Cobbler because, only cobbler falls in private sector.
(iv) Sahara Airlines, as this is only a private sector company in the group.
Q.6: Do you think the classification of economic activities into primary, tertiary and secondary is useful? Explain how.
Ans: The classification of economic activities into primary, tertiary and secondary is useful on account of the information it provides on how and where the people of a country are employed. also this 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. Hence it is necessary to classify economic activities into these there sectors for smooth economic administration and development.
Q.7: 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.
Ans: For each of the sectors mentioned in this chapter our focus should definitely be on employment and GDP. This is because growth in GDP and full employment are common goals of Five Year Plans and they also determine the size of a country’s economy. A focus on employment and GDP helps us to calculate and monitor the most important factors like: per capita income, productivity, changes in employment rate and contribution to GDP by the three sectors of economy and thus, takes necessary steps required for the upliftment of the country’s economy as a whole.
Yes, the other issues which should be examined are -
1. balanced regional development
2. equality in income and wealth among the people of the country.
3. how to eradicate poverty
4. modernization of technology
5. self-reliance of the country
6. how to achieve surplus food production in the country.
Q.9: How is the tertiary sector different from other sectors? Illustrate with few examples.
Ans: The tertiary sector different from other two sectors. This is because other two sectors produce goods but, this sector does not produce goods by itself. But the activities under this sector help in the development of the primary and secondary sectors. These activities are an aid or support for the production process. For example, transport, communication, storage, banking, insurance, trade activities etc. For this reason this sector is also known as service sector.
Q.10: What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
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 agricultural sector like - in a family of 9 people all are engaged in the same agricultural plot. But if 4 people are with drawn 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.
Q.11: Distinguish between open unemployment and disguised unemployment.
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.
Q.12: Tertiary sector is not playing any significant role in the development of Indian economy. Do you agree/ Give reasons in support of your answer.
Ans: No, I do not agree with the statement that tertiary sector is not playing any significant role in the development of Indian economy. The reasons are as follows:
1. In terms of GDP this sector emerged as the largest producing sector in India surpassing the primary and secondary sectors. In 1973, the share of the tertiary sector in GDP was about 35% which increased to more than 50% in 2003. Over the thirty years between 1973 and 2003, while production in all three sectors increased, it has been the most in tertiary sector.
2. In terms of employment also the rate of growth of employment in tertiary sector between the same period was nearly 250%. This was negligible in primary sector.
Q.13: Service sector in India employs two different kinds of people. Who are these?
Ans: The service sector in India employs the following two different kinds of people. They are:
(a) 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.
(b) 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.
Q.14: Workers are exploited in the unorganized sector. Do you agree with this view.? Give reasons in support of your answer.
Ans: 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.
Q.15: How are the activities in the economy classified on the basis of employment conditions?
Ans: 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.
Q.16: Compare the employment conditions prevailing in the organized and unorganized sectors.
Employment conditions in
Employment conditions in
1. The labour gets regular monthly salary.
1. The labour gets daily wages.
2. In addition to the salary, workers get several other benefits like - paid leave, PF, gratuity etc.
2. Workers do not any allowances apart from wages.
3. The daily working hours is fixed.
3. There is no fixed number of working hours.
4. The labourers are given an appointment letter stating all terms and conditions of job.
4. There is no such provision.
5. People enjoy security of employment. Working conditions are also good.
5. There is no job security. working conditions are very tough.
Q.20: Give three examples of Public Sector activities and explain why the government has taken up them.
Ans: The examples are:
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.
Q.21: Explain how Public sector contributes to the economic development of a nation.
Ans: In the following ways Public sector contributes to the economic development of a nation:
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.