Class 10 SST Economics Sectors of Indian Economy

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Sectors of Indian Economy

Class 10 SST

Economics

Classify the following list of occupations under primary, secondary and tertiary sectors: (Tailor, Basket weaver, Flower cultivator, Milk vendor, Fishermen, Priest, Courier, Workers in match factory, Money lender, Gardener, Potter, Bee-keeper, Astronaut, Call centre employee)
Answer: Primary Sector: Basket weaver, Flower cultivator, Milk vendor, Fishermen, Money lender, Gardener, Potter, Bee-keeper
Secondary Sector: Workers in match factory
Tertiary Sector: Tailor, Priest, Courier, Money lender, Astronaut, Call centre employee

Important questions

Explain the difference between primary, secondary and tertiary sectors using examples other than those mentioned in the text.
Answer:

Primary Sector	Secondary Sector	Tertiary Sector
This sector is involved with agriculture and direct use of natural resources.	This sector involved with large scale processing of natural resources; aimed at value addition.	It is involved with supporting the activities of primary and seconary sectors.
Example: Farming, apiculture, cattle farming, etc.	Example: Manufacturing INDUSTRIES Iron and steel industry, sugar mill, shoe factory, etc.	Example: School Banking, transportation, BPO, consultancy, etc.

• What does the history of developed countries indicate about the shifts that have taken place between sectors?’
  Answer: At the time of early settlements and civilization all economic activity was in primary sector majorly. When the food production became surplus people’s looked for other needs. This led to the development of secondary sector. The growth of secondary sector spread its impact during industrial revolution in nineteenth century. After growth of economic activity a support system was the need to facilitate the industrial activity. Certain sectors like Banking and transport had an important role in supporting the industrial activity and comprised the tertiary sector.
• Correct and arrange the important aspects for calculating GDP from this Jumble. (To count goods and services we add the numbers that are produced. We count all those that were produced in the last five years. Since we shouldn’t leave out anything we add up all these goods and services.)
  Answer: Because of the reason that we shouldn’t leave out anything we add up all these goods and services. To count goods and services we add the items that are produced. We count all those that were produced during last five years.

Answer the following questions:

• Which was the largest producing sector in 1973?
  Answer: Primary sector
• Which is the largest producing sector in 2003?
  Answer: Tertiary sector
• Can you say which sector has grown the most over thirty years?
  Answer: Tertiary sector
• What was the GDP of India in 2003?
  Answer: About 200,000 crore (in Rs)

·  Underemployment occurs when people

• Do not want to work
• Are working in a lazy manner
• Are working less than what they are capable of doing
• Are not paid for their work

Answer: Are working less than what they are capable of doing

·  Compare and contrast the changes in India with the pattern that was observed for developed countries. What kind of changes between sectors were desired but did not happen in India?
Answer: In developed countries, the origin of the economy happened as a normal pattern. Growth in the primary sector than secondry and tertiary afterwards. The employment generation also kept pace with related changes in different sectors. The case of India is somewhat different. The growth of the primary sector was not followed by the growth of the secondary sector, rather it was the tertiary sector which took the lead. But employment generation in either the secondary or tertiary sector could not keep pace. Even today a larger number of people depend on the primary sector for employment; compared to the other two sectors. This shows a disturbing trend because the primary sector ha to deal with with the problem of hidden unemployment.

NCERT QUESTIONS

• What is the percentage of workers in the unorganized sector in this city?
  Answer: 70%
• Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.
  Answer: The classification of economic activities into primary, secondary and tertiary sector is useful from many aspects. It helps the finance  specialists to understand the problems and opportunities in an economy in a better way. Also The government can utilize the information to bring various welfare programmes and supportive measures to grow the economy so that there could be better employment generation.
• For each of the 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.
  Answer: GDP gives an overall picture of the economy and contribution by various sectors. It gives a ready- reference for policymakers. Hence, GDP has its importance in analysis of economic performance. All the economic activities are done with the sole purpose of earning livelihood and hence data regarding employment generation are important. Apart from these information, we also need to look at the growth pattern in various sectors; on different parameters.
• What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
  Answer: When a person appears to be working but his potential is not being fully utilised; he is facing disguised unemployment. The worker; in this case; is working in a particular occupation because he does not have anything better to do. Compulsion; rather than choice is the main deciding factor in this case. In case of rural areas, many people may be working on a small plot of land when the work could have been done by a few people. The additional people are working because they do not have anything better to do. This is the classic case of hidden unemployment. In urban areas; a shop may be shared by many brothers and all of them may be working in the same shop. They could have diversified into more gainful employment but sticking to their shop because they may not be getting opportunities.

• Distinguish between open unemployment and disguised unemployment.
  Asnwer: When a person is without work, this is called unemployment. When a person is doing a job but is unable to fulfill his potential because he is not getting something better to do, this is called disguised unemployment. The person may be sticking to the occupation because of various reasons; like lack of employment opportunities, lack of resources, etc.
• “Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.
  Asnwer: This statement is partially true. When we look at the growth of tertiary sector from 1973 to 2003, then it can be said that this sector has shown good growth. Moreover, the tertiary sector is the largest contributor to the GDP in 2003; which is another positive for this sector. But when the percentage of employment is analysed, tertiary sector has failed to generate employment which could match with its contribution in the GDP. Hence, it can be said that the tertiary sector has not grown in terms of employment generation.
• Explain the objective of implementing the NREGA 2005.
  Asnwer: NREGA 2005 was implemented with the prime objective of fulfilling the ‘Right to Work’. This progamme provides 100 days’ employment to one member from each family in rural areas. The programme is aimed at eradicating poverty in rural areas. This is also aimed at arresting the large scale migration which has been happening from BIMARU states of India to prosperous cities and states.
• Using examples from your area compare and contrast that activities and functions of private and public sectors.
  Answer: Let us take example of any small city of India and let us try to understand the transport sector. The bus services for long distance travel are provided by the State Transport Corporation; which is a public sector organization. Additionally, many private operators also ply their buses. Workers who are working for the State Transport Corporation get all the employment related benefits, which are usually not available to those working for the private operators.
• Give a few examples of public sector activities and explain why the government has taken them up.
  Answer:

Activities	Reason for government control
Water supply	Water is a  very basic necessity and water supply needs high investment. People need water at highly as low as possible rates.
Railways	large capital is required for laying railway lines and for procuring trains.
Roads	Private builders may not be interested in building roads in remote areas.

• Explain how public sector contributes to the economic development of a nation.
  Answer: Public sector has immense contribution in economic development of a nation. Public sector had provided initial boost to the economy when India was a very poor country. Public sector helped in building the basic industries and infrastructure and thus created an environment in which the private enterprise could thrive. Thus, the public sector has helped in a great way in India’s economic development.
• The workers in the unorganised sector need protection on the following issues : wages, safety and health. Explain with examples.
  Answer: The government specifies the minimum wages from time to time. This is the minimum earning required for meeting a basic quality of life. Many workers in the unorganized sector are not getting even the minimum wages and hence are forced to live in penury. Safety at workplace is another important aspect. Lack of safety can lead to permanent disability or even death of a worker. A healthy worker shall be in a position to contribute to the economy. Hence, an employer should provide proper health benefits to its workers.
• A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000 worked in the unorganised sector. The total income of the city in this year (1997-1998) was Rs 60,000 million. Out of this Rs 32,000 million was generated in the organised sector. Present this data as a table. What kind of ways should be thought of for generating more employment in the city?
  Answer:

	Organised sector	Unorganised sector	Total
Number of workers	400,000	1,100,000	1,500,000
Total income (million rupees)	28,000	32,000	60,000

• It is clear that while a larger portion of workers is working in the unorganized sector, the per capita earning of those in the organized sector is more. The government should encourage the entrepreneurs in the unorganized sector to change them into the organized sector. Moreover, government should introduce some incentives so that more industries could be opened up in the organized sector.