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2016

PREPARED BY : ARUN PRATAP SINGH

The economy of India is the ninth-largest in the world by nominal GDP and the third-largest by purchasing power parity (PPP). One way.INDIAN ECONOMY STRUCTURE OF INDIAN ECONOMY : Economy is a framework in which economic activities take place and therefore gives income in return. 03/01/2016 . some may be producing goods while others may be delivering services. People around us are engaged in different activities to earn livelihood. The second way is GDP (PPP) or GDP at Purchasing Power Parity (PPP). called GDP at exchange rate. There are two ways to measure GDP (total income of a country) of different countries and compare them. is when the currencies of all countries are converted into USD (United States Dollar).

The theory aims to determine the adjustments needed to be made in the exchange rates of two currencies to make them at par with the purchasing power of each other. Example: Let's say that a pair of shoes costs Rs 2500 in India. Then it should cost $50 in America when the exchange rate is 50 between the dollar and the rupee. 03/01/2016 .INDIAN ECONOMY PPP is used worldwide to compare the income levels in different countries. the expenditure on a similar commodity must be same in both currencies when accounted for exchange rate. In other words.

for e. mining etc. SECONDARY SECTOR :  A secondary sector is a sector whereby the raw material that is extracted from earth is converted to semi.g.  Agriculture and agriculture related activities are the primary sectors of economy.  For example : Agriculture.  In other words a primary sector is a sector whereby the raw materials are extracted from earth. falls under secondary sector..INDIAN ECONOMY 03/01/2016 PRIMARY SECONDARY TERTIARY PRIMARY SECTOR :  When the economic activity depends mainly on exploitation of natural resources then that activity comes under the primary sector.  Or we can say that the economic activities which are related to the manufacturing process. TERTIARY SECTOR : .finished goods or finished goods. fishing. manufacturing of steel.

 Now to transport sugarcane to sugar mills and sugar to the cold drink plant needs the services of a transporter. 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. like transportation.  . etc. falls under tertiary sector.INDIAN ECONOMY 03/01/2016  A tertiary sector is a sector that transports and distributes goods to retailers or wholesalers. let us take an example of a cold drink. And it would have a bad influence in our economy How it is interdependent we can take an example for it –  To understand this interdependency. And the sum of production in the three sectors gives the Gross Domestic Product of a country. A cold drink contains water. sugar and artificial flavour.  Each sector is important because if there was one sector that did not exist there other sectors would also not exist.  Suppose if there is no sugarcane production then procuring sugar will become difficult and costly for the cold drink manufacturer. GDP shows how big the economy of a country is. banking. insurance.  The economic activities that are mostly based on providing service to the society. The 3 Sectors Are Dependent On Each Other and each sector is important.

INDIAN ECONOMY Classification (on the basis of ownership) : Public Sector : The government owns most of the assets and provides all the services. Private Sector : Ownership of assets and delivery of services is in the hands of private individuals or companies. 03/01/2016 .

INDIAN ECONOMY Classification (on the basis of employment) : Organized Sector : People have assured work and terms of employment are regular. 03/01/2016 .

 Protection and support to the unorganized sector is both necessary for economic and social development.  Other than salary which is very low they don’t get any other benefits. . therefore they are not able to fulfill even their basic needs. Workers under unorganized sector need protection. It has low pay and unsecured jobs.  They are paid low salaries.  These workers also face social discrimination.  They are exploited.  Employment is there but not on regular basis they can be thrown out any time without any rhyme or reason.INDIAN ECONOMY 03/01/2016 Unorganized Sector : It consists of small and scattered which are not in the control of the government.

The Indian landmass contains a multitude of both types of resource and its economy.INDIAN ECONOMY 03/01/2016 Natural Resources : Natural resources are utilizable materials derived from the environment. Natural Resouces BIOTIC Resources have three main characteristics:    Utility Quantity (often in terms of availability) Consumption. ABIOTIC . Resources are classified as either biotic or abiotic on the basis of their origin. especially in rural areas. is heavily dependent on their consumption or export.

resources may be divided into. water. iron. Biotic . silver etc. animals. Forests and their products. Natural resources may be further classified in different ways.Abiotic resources comprise non-living things. For examples include land. Minerals such as coal and petroleum are also included in this category because they were formed from decayed organic matter. copper. air and minerals such as gold. on the basis of origin. birds and their products. 03/01/2016 .Biotic resources are those obtained from the biosphere. Many of them are essential for our survival while others are used for satisfying our needs. Abiotic . fish and other marine organisms are important examples.INDIAN ECONOMY Natural resources are derived from the environment. India's most important natural resources are land and water.