Sectors of the Indian Economy Chapter Notes - Humanities/Arts PDF Download

Sectors of Economic Activities

(i) Primary Sector/Agricultural Sector

• Use of natural resources: The cultivation of cotton.

(ii) Secondary Sector/Industrial Sector

• It is the manufacturing sector.

(iii) Tertiary Sector/Service Sector

• For the development of primary and secondary sector.
• Generation of services rather than goods.

Comparing the Three Sectors

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

• 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.
• The task of measuring GDP by a ministry with the help of various govt, departments of all States and Union Territories.

Historical Changes in Sectors 

• Initially primary sector.
• Changes in agriculture.
• Manufacturing and secondary sector.
• Change from secondary to tertiary sector.
• Rising importance of tertiary sector: Hospitals, defence, transport, trade, storage, increase in income and new demands, development of IT.
• Still more people employed in primary sector: Under-employed/disguised unemployment.
• New employment: How to create: Loan by banks, construction of dams for irrigation, transport facilities and storage of crops, to promote local industries, tourism and MGNREGA 2005.

Division of Sectors 

(i) Organised
(ii) Unorganised

➢ Organised

• Factory Act, Minimum Wages Act and other facilities.

➢ Unorganised

• No such facilities and outside the control of govt.
• Need to protect workers in the unorganised sector.

Sectors in Terms of Ownership

(i) Public
(ii) Private

➢ Public Sector

• Production of electricity.
• Railways.
• Fair price shops.
• The primary responsibility of govt.

➢ Private Sector

• Reliance Industries