NCERT Solutions for Class 10 Economics Chapter 2 Sectors of Indian Economy

Primary Sector: Producing a good by exploiting natural resources is an activity of primary sector. Such as: Agriculture, Dairy fishing forestry and so on.

Secondary Sector: covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activities. Such as using cotton fiber from plant.

Tertiary Sector: These activities by themselves do not produce a good but they are an aid or a support for the production process. This sector is known as Service sector also. Such as transport services, insurance services and so on.

Private sector part of a country’s economic system runs by individuals and companies, rather than the government whereas Public sector usually comprised of organization that are owned and operated by the government and exist to provide services for its citizens.

Organised sector is a sector where the employment terms are fixed and regular, and the employees get assured work whereas Unorganized Sector is a sector where the employment terms are not fixed and regular, as well as the enterprises, are not registered with the government.

When more people are working that is needed and even if some people are removed from work, does not affect the total production. This situation is called disguised unemployment. It is also known as Hidden unemployment.

Tourist guide He is appointed by the government, while dhobi, tailor and potter belong to the private sector. Dhobi, tailor and potter are self – employed.

The classification of economic activities into primary, tertiary and secondary is useful as it provides necessary information on how and where the people of a country are employed. It is also a determining factor as to which sector of economic activity contributes more or less to the country’s GDP and per capita income. With this information we can bifurcate the sectoral share in the economy and government can make amendment in policies to boost the sector contributing less to the economy. If the tertiary sector is developing much faster than the primary sector, then it indicates that agriculture is depleting, and the government must take measures to rectify this. It is also an indicative of which sector is the most popular and which sector is becoming unpopular or regressive. Hence it is necessary to classify economic activities into these three sectors for smooth economic administration and development.

For each of the sectors that we came across in this chapter, one should focus on employment and GDP because they decide the extent of the economy of a country and the stipulation of the economy. A focus on employment and GDP helps us to determine two important things- per capita income and productivity. So, in all the three sectors, employment rate and status and its contribution to the GDP helps us know how that particular sector is performing and what needs to be done to initiate the growth in it further. Yes, the other issues which should be examined are: a). Balance in regional development. b). Equality in income and wealth among all the people of the country. c). Modernization of technology. d). Self-reliance of the country. e). How to attain surplus food production in the country? f). How to eliminate poverty?

The tertiary sector is for the services rendered and the other two sectors are for production of goods. The activities under this sector help in the development of the primary and secondary sectors. Therefore, it is also known as the service sector. These are auxiliary services that support the production process. For example, goods produced in the primary or secondary sector use transportation service for movements of goods from one place to another, banking and communication services to deal with payment for goods, etc.

When the labour force of a country does not get adequate opportunities for employment, this situation is called open unemployment. The Industrial sector of our country suffers most from this type of unemployment. This is also found among the landless agricultural labourers in rural areas. This kind of unemployment exists due to lack of resources. When people are visibly employed but actually don’t have full time employment and more people are engaged in work than required without increasing the production, it is call disguised employment. This type of unemployment is generally found in unorganized sector where either work is not regularly available or too many people are employed for the same work that does not require so many hands. The absence of alternative employment opportunities leads to this situation.

No, I do not agree with the statement that tertiary sector is not playing any significant role in the development of Indian economy. Over the past four decades (1970 – 2010), tertiary sector has emerged as the largest sector in terms of production. The growth in the service sector can be attributed to various factors such as: Need for basic services like health, education, security, finance etc. Introduction of new services like IT. Development of primary and secondary activities. Increase demand for services due to increase in per capita income. The GDP share of the tertiary sector has grown from around 40% in 1973 to more than 50% in 2003.

Following are the two different kinds of people: a) The people indulged in the services that may directly aid 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 or the self-employed. e.g. teachers, doctors, barbers, lawyers etc. They may be termed as ancillary workers, those who provide services to the primary service providers.

The employment conditions prevailing in the organised and unorganised sectors are completely different from one another. a). The Organised sector: The organised sector mainly comprises of companies registered with the government and offers job security, paid holidays, pensions, health and other benefits, fixed working hours and extra pay for overtime work. b). The Unorganised sector: The unorganised sector is just the complete opposite of organised sector. There is no job security, no paid holidays or pensions on retirement, no benefits of provident fund or health insurance, unfixed working hours and no guarantee of a safe work environment.

The objective of implementing the NREGA 2005 are: Increase the income of people and generate employment for them. Promotion of tourism in every state or region additional employment opportunity. The central government implemented the law giving right to work in 200 districts. NREGA aims to provide minimum employment of 100 days and upon failure to do so, it will give unemployment allowances to the people.

A few examples of public sector activities are the provision of water, electricity and some modes of transport, especially railway. The government controls these provisions because water and power are basic necessities and are needed by everyone. If the work of providing electricity and water is handed over to private enterprises, they might exploit this opportunity and sell these at rates which the masses cannot afford. Therefore, to ensure that basic amenities like water and power are available for all, the government supplies these at low and affordable rates.

In the following ways Public sector contributes to the economic development of a nation: It focuses on infrastructural development and promotes rapid economic development. It creates employment opportunities so that more people can find suitable jobs. It generates financial resources for development. It ensures equal distribution of income and wealth to maintain equilibrium in all regions. It encourages sustainable development of small, medium and cottage industries so that they can contribute toward economic development. It ensures easy availability of goods and commodities at moderate rates. Contributes to overall development i.e. to the Human Development Index (HDI) via health and educational services.

The workers in the unorganised sector need protection: a). Wages: Labourers who are employed as a repair person, vegetable vendor etc. do not have fixed income. They somehow manage to earn their living. They are not employed throughout the year. b). Safety: Workers in unorganized sector have to deal with hazards and are not provided with safe drinking water or a clean environment. E.g., Working in mining, chemical industries is hazardous. c). Health: Proper medication in not available and leaves are not granted in case of sickness. No medical infrastructure available E.g. Construction workers.