10 Class Economics Chapter 2 Sectors of The Indian Economy Notes
|Chapter Name||Sectors of The Indian Economy|
|Category||Class 10 Economics Notes|
Class 10 Economics Chapter 2 Sectors of The Indian Economy Notes. here we will be learn about Economic Activities, Primary Sector, Secondary Sector, Tertiary Sector, Gross Domestic Product , Disguised Unemployment , MGNREGA Act 2005, Organized Sector, Unorganised Sector, Public Sector, Private Sector etc.
Class 10 Economics Chapter 2 Sectors of The Indian Economy Notes
📚 Chapter = 2 📚
💠 Sectors of The Indian Economy💠
❇️ Economic Activities :-
🔹 The activities which are conducted to Earn Money are called Economic Activities. Some Activities are conducted to produce goods and services while some are performed to provide services.
❇️ Sectors of Economic Activities :-
🔹 On the basis of nature of activity, primary, secondary and tertiary are sectors of economic activities.
❇️ Primary Sector :-
🔹 The sector in which goods are produced by exploiting natural resources is called Primary Sector. This sector is also called agriculture and related Sector.
🔹 Example :- Agriculture, Dairy, fishing etc.
❇️ Secondary Sector :-
🔹 The sector in which natural product(which we get from Primary Sector) are changed into other forms through ways of manufacturing is known as Secondary Sector. It is also called as Industrial Sector.
🔹 For example :- Yarn and cloth weaving from cotton fibre, sugar or gur from sugarcane, etc.
❇️ Tertiary Sector :-
🔹 The sector that helps in the development of the primary and secondary sectors is called Tertiary Sector This is also called Service Setor.
🔹 Example :- Banking Transport etc.
❇️ Comparing The Three Sectors :-
🔹 These primary, secondary and tertiary activities are interdependent on each other, as the goods and services produced in one is used in the other sectors also.
🔹 Goods and services are of two types
🔶 (i) Final goods and services mean those goods and services that are directly consumed by the consumers and are not meant for further production and processing.
🔶 (ii) Intermediate goods and services mean those goods and services that are used for further production on processing. and
❇️ Gross Domestic Product(GDP) :-
🔹 The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year and the sum of production in the three sectors gives what is called the GDP.
❇️ Historical changes in the three economic sectors :-
- After independence to 1972 primary sector was prominent in Indian GDP.
- As farming method improves and surplus food was produced people channelized their energy towards manufacturing.
- Very soon secondary sector gained prominence.
- Because of development of primary and secondary sector, information and technology, trade, transport etc, tertiary sector gained prominence.
- In 2011-12 share of tertiary sector in Indian GDP was approximately 60%.
❇️ Primary, Secondary and Tertiary sectors in India :-
🔹 If we compare the Indian G.D.P. from the year 1973-1974 to 2013- 2014, we find the dominance of Primary Sector has shifted to Tertiary Sector.
❇️ Rising Importance of the Tertiary Sector in Production :-
🔹 Over the forty years between 1973–74 and 2013–14, while production in all three sectors has increased to a great extent, it has increased most in the tertiary sector.
🔹 Now, tertiary sector has emerged as the largest producing sector in India. It has replaced primary sectors in terms of GDP.
❇️ Reason why tertiary sector becoming the most important in India :-
- It provides basic services to the people. Ex-Hospital, Post Office, Telegraph etc.
- For the development of agriculture and industry, transport and trade like activities are vital.
- With the increase of income level of the people more service were needed or demanded by people.
- New services based on information and communication have become essential.
- It provides employment to people in large number.
❇️ Where are most of the people employed?
🔹 The share of the primary sector in GDP of the country was 74% between 1972–73 and 49% in 2011-12.
🔹 In today’s age, the share of tertiary sector has increased to a great extent and the share of primary sector has reduced, yet the greatest number of people i.e, around half of the population is engaged in primary sector.
🔹 It simply shows the disguised unemployment in Primary Sector.
❇️ Different types of unemployment in India :-
- Underemployment or disguised employment
- Seasonal unemployment
❇️ Underemployment or disguised employment :-
🔹 A situation where more people are engaged than required. So, even if you turned people out, production will not be affected. It is called underemployment.
❇️ Seasonal unemployment :-
🔹 When people are unemployed for a particular season, it is as seasonal unemployment.
🔹 For example :- if farmers are ploughing land only for rabi season then , they, become unemployed for the rest of the season.
❇️ How to create more employment?
🔶 In Short Term :-
- Schemes like MGNREGA 2005
- one third employment is reserved for women.
🔶 In Long Term :-
- By providing agricultural facilities.
- Cheap agricultural Credits.
- Setting up Industries in Semi-rural areas.
- By opening more school/college.
- By opening more hospitals.
❇️ MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) 2005 :-
🔹 Under MGNREGA 2005, all those who are able to, and are in need of work in rural areas are guaranteed 100 days of employment in a year by the government.
🔹 If the government fails in its duty to provide employment, it will give unemployment allowances to the people.
🔹 It was started to step up the ‘Right to work’ as a part of directive principles of state.
🔹 The main features of the scheme are as follows :-
- The scheme guarantees 100 days of wage employment in years for a every rural household in 625 districts of the country.
- This act is also called as Right to Work because if the government fails in its duty to provide employment, it will provide unemployment allowances to the people.
❇️ Various ways to provide employment opportunities in rural areas :-
- Provide loans to small farmers for cultivation, irrigation and so on.
- Dams, canal can be constructed will lead to a lot of employment generation.
- Construction of roads in rural area creates employments in rural community.
- More and more schools should be opened which would create jobs in education sector and literacy as well in rural area.
- To improve the health situation, we need more doctors, nurses health workers to work in rural area.
❇️ Various ways to create more employment in the agriculture sector :-
- Loans could be given to farmers to buy the agriculture equipments.
- Dams can be built to irrigate dry areas.
- Seeds and fertilizers could be subsidized.
- Storage facilities could be provided.
- Transport facilities could be increased.
❇️ Division of Sectors as Organised and Unorganised :-
🔹 On the basis of the working conditions or how people are employed, sectors of economy are divided into organised and unorganised sectors.
❇️ Organized Sector :-
🔹 The organized sector covers those enterprises or places of work where the terms of employment are regular and people have assured work. It is called organized because it has some formal processes and procedures.
🔹 These enterprises are registered by the government and have to follow the rules and regulations formed under various laws like minimum wages act, factories act, etc.
❇️ Unorganised Sector :-
🔹 Unorganised sector is a sector which is not covered registered with the government. This sectors is characterized by small and scattered units which are largely outside the government control and interference.
🔹 Workers here get low wages and there is no provision for overtime and paid holidays etc.
❇️ Difference between organized and Unorganised sector :-
|Organized sector||Unorganised sector|
|Fixed working hours.||Working hours are not fixed.|
|Fixed Minimum wages.||Less than minimum wages fixed by government.|
|Secured employment.||Employment is not secured.|
|Enjoyable working conditions.||Working condition is not up to the mark.|
|Other facilities such as medical, gratuity, Other pension’s are; provided.||No such facilities provided.|
❇️ Why do workers in the Unorganised sector need protection on issues like wages, safety and health?
- The employee refuse to follow laws that protects labourers. That is why protection is needed.
- The workers are not paid a fair wages and hence need protection.
- Job is not secured that is why they need protection.
- The workers get no other benefits like provident fund, gratuity, paid leaves, medical benefits etc.
- No pension after retirement.
❇️ How to Protect the workers Under Unorganised Sector :-
- There are many groups of vulnerable people who need protection in the unorganised sector.
- In rural areas farmers can be supported through adequate facilities for timely delivery of seeds, agricultural inputs, credit, storage etc.
- In urban areas the small scale industries can be protected by governments support for procuring raw materials and marketing of output.
- Protection and support to farmers and workers are necessary for economic and social development.
❇️ Sectors in Terms of Ownership :-
🔹 In terms of ownership, there are public and private sectors.
❇️ Public sector :-
🔹 The sector which is owned by government and where the government owns most of the assets and provides services to the public.
🔹 For examples :- Indian Railways is governed by the Indian government.
❇️ Private Sector :-
🔹 In this sector, ownership of assets and delivery of services lie in the hands of individuals or private companies.
🔹 For example :- Infosys, TCS etc.
❇️ Difference between Private and Public sectors :-
|Public sector||Private sector|
|The main aim of this sector is public welfare.||The main aim of this sector is to earn maximum profit.|
|It is controlled and managed by Government.||It is controlled and managed by an individual of group of individuals.|
|Necessary facilities provided by Government.||All the facilities provided by Individual or group of individuals.|
|Employment is secured.||Employment is not secured.|
|Fixed wages and important facilities are Provided. Such as medical claim and so on.||Generally neither fixed wages nor other important facilities are provided.|
|The sector provides basic facilities like education, health, food and security to the people, for example, BSNL, Post office and so on.||The sector provides consumer goods to the people. For example :- TISCO, Reliance and so on.|
❇️ Major problems faced by farming sector :-
- Unirrigated land
- Fluctuation in income
- Debt burden
- No job in the off season
- Compelled to sell their grains to the local traders soon after harvest.
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