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Eco L2 – Sectors of the Indian Economy Sectors of the Economy
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Eco L2 – Sectors of the Indian Economy Sectors of the Economy
sector
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Eco L2 – Sectors of the Indian Economy Sectors of the Economy
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Eco L2 – Sectors of the Indian Economy Sectors of the Economy
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Eco L2 – Sectors of the Indian Economy Sectors of the Economy
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Eco L2 – Sectors of the Indian Economy Inter-dependence of the sectors
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Eco L2 – Sectors of the Indian Economy Comparing the Three Sectors
• Activities in the three sectors results in the production very large number of
goods and services
• The three sectors have a large number of people working in them to produce
these goods and services
• The next step, therefore, is to see how much goods and services are produced
and how many people work in each sector.
• In an economy one sector could dominate while other two sectors remain small
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Eco L2 – Sectors of the Indian Economy How to count goods and services produced?
• With so many thousands of goods and services produced, you might think this is
an impossible task! Not only would the task be enormous, but you might also
wonder how we can add up cars and computers and nails and furniture. It won’t
make sense!!!
• You are right in thinking so. To get around this problem, economists suggest that
the values of goods and services should be used rather than adding up the actual
numbers. For example, if 10,000 kgs of wheat is sold at Rs 8 per kg, the value of
wheat will be Rs 80,000. The value of 5000 coconuts at Rs 10 per coconut will be
Rs 50,000. Similarly, the value of goods and services in the three sectors are
calculated, and then added up.
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Eco L2 – Sectors of the Indian Economy How to count goods and services produced?
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Eco L2 – Sectors of the Indian Economy How to count goods and services produced?
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Eco L2 – Sectors of the Indian Economy How to count goods and services produced?
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Eco L2 – Sectors of the Indian Economy
2. Explain with examples, the interdependence of the three sectors of the economy.
3. Why should only the value of final goods and services be counted? Explain with
examples.
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Eco L2 – Sectors of the Indian Economy How to count goods and services produced?
• 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 Gross Domestic Product
(GDP) of a country. It is the value of all final goods and services produced within a
country during a particular year. GDP shows how big the economy is.
• In India, the mammoth task of measuring GDP is undertaken by a central
government ministry. This Ministry, with the help of various government
departments of all the Indian states and union territories, collects information
relating to total volume of goods and services and their prices and then
estimates the GDP.
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Eco L2 – Sectors of the Indian Economy Historical Change in Sectors
• In early years, even in developed countries, Primary Sector was the dominant
sector
• Methods of agriculture changed, and there was surplus produce.
• New occupations like trading, craft, transportation came up
• At this stage, most of the goods produced were natural products from the
primary sector
• Most people were employed in the Primary Sector
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Eco L2 – Sectors of the Indian Economy Historical Change in Sectors
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Eco L2 – Sectors of the Indian Economy Historical Change in Sectors
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Eco L2 – Sectors of the Indian Economy
SECTORS IN INDIA
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PRIMARY, SECONDARY AND TERTIARY SECTORS
Eco L2 – Sectors of the Indian Economy
IN INDIA
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Eco L2 – Sectors of the Indian Economy Why is tertiary sector becoming important?
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Eco L2 – Sectors of the Indian Economy Why is tertiary sector becoming important?
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Eco L2 – Sectors of the Indian Economy Why is tertiary sector becoming important?
3
As income levels rise, certain sections
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Eco L2 – Sectors of the Indian Economy Why is tertiary sector becoming important?
4
Over the past decade or so, certain
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Eco L2 – Sectors of the Indian Economy Is everyone benefitted?
The disparity in
the Tertiary
Sector
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Eco L2 – Sectors of the Indian Economy GDP and Employment by Sectors - Comparison
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Eco L2 – Sectors of the Indian Economy GDP and Employment by Sectors - Comparison
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Eco L2 – Sectors of the Indian Economy GDP and Employment by Sectors - Comparison
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Eco L2 – Sectors of the Indian Economy GDP and Employment by Sectors - Comparison
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Eco L2 – Sectors of the Indian Economy GDP and Employment by Sectors - Comparison
Primary Sector
continues to be the
biggest employer
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Eco L2 – Sectors of the Indian Economy GDP and Employment by Sectors - Comparison
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Eco L2 – Sectors of the Indian Economy GDP and Employment by Sectors - Comparison
Let’s Analyse
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Eco L2 – Sectors of the Indian Economy Why is the Primary Sector dominant?
Sectors.
Employment
Output in
Sector
Production
Secondary 9% 3%
Tertiary 14 % 9%
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Eco L2 – Sectors of the Indian Economy
The Challenge
There are a greater number of people in Primary Sector than necessary
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Eco L2 – Sectors of the Indian Economy Underemployment or Disguised Unemployment
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Eco L2 – Sectors of the Indian Economy Underemployment or Disguised Unemployment
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Eco L2 – Sectors of the Indian Economy Underemployment or Disguised Unemployment
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Eco L2 – Sectors of the Indian Economy
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Eco L2 – Sectors of the Indian Economy
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Eco L2 – Sectors of the Indian Economy
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Eco L2 – Sectors of the Indian Economy
1. Write a note on the historical change in the sectors of the Developed Economies.
2. What is Tertiary Sector? Why is it becoming more and more important in recent times?
3. Primary Sector is the largest employer but the least contributor to the GDP.
Substantiate
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Eco L2 – Sectors of the Indian Economy Who else suffer from disguised unemployment?
Painters
Plumbers
Vegetable Vendors
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Eco L2 – Sectors of the Indian Economy How to create more employment?
1
• Suppose Lakshmi cultivates second
crop
• All the five can be fully employed
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Eco L2 – Sectors of the Indian Economy How to create more employment?
2
• The surplus should be transported to
nearby town/city
• The Govt. needs to construct Roads
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Eco L2 – Sectors of the Indian Economy How to create more employment?
Cheap Credit
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Eco L2 – Sectors of the Indian Economy How to create more employment?
Small Industries
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Eco L2 – Sectors of the Indian Economy How to create more employment?
Small Industries
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Eco L2 – Sectors of the Indian Economy How to create more employment?
Small Industries
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Eco L2 – Sectors of the Indian Economy How to create more employment?
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Eco L2 – Sectors of the Indian Economy How to create more employment?
sector alone.
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Eco L2 – Sectors of the Indian Economy How to create more employment?
areas.
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Eco L2 – Sectors of the Indian Economy How to create more employment?
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Eco L2 – Sectors of the Indian Economy MGNREGA
• The central government in India made a law implementing the Right to Work in about 625
districts of India.
• It is called Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA
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.
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Eco L2 – Sectors of the Indian Economy Organised/ Unorganised Sectors
from 9.30 a.m. to 5.30 p.m. She gets her salary labourer in a nearby grocery shop. He goes to
regularly at the end of every month. In addition the shop at 7:30 in the morning and works till
to the salary, she also gets provident fund as per 8:00 p.m. in the evening. He gets no other
the rules laid down by the government. She also allowances apart from his wages. He is not paid
gets medical and other allowances. Kanta does for the days he does not work. He has
not go to office on Sundays. This is a paid therefore no leave or paid holidays. Nor was he
holiday. When she joined work, she was given an given any formal letter saying that he has been
appointment letter stating all the terms and employed in the shop. He can be asked to leave
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Eco L2 – Sectors of the Indian Economy Differences - Organised/ Unorganised Sectors
Organised Unorganised
• The entrepreneurs and companies need to • Employment depends upon the whims and
Establishment Act, Minimum wages Act etc. • There is no fixed working hours
• Workers get facilities like paid holidays, Over • No Over Time work payment is given
Time, maternity benefits, gratuity, Provident • There are no facilities whatso ever
• Jobs in this sector are most sought after small vendors, semiskilled workers, head
load workers, rag pickers etc. are found in
this sector
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Eco L2 – Sectors of the Indian Economy Organised and Unorganised Sectors
• After Globalisation, most companies organised sectors have begun to function like
unorganised sectors
• Most farmers are in this sector.
• Timely supply of seeds, fertilizers, cheap credit and market for the crops can help them.
• Helping marketing the products of small industries will help workers in such industries
• Socially backward classes suffer from double disadvantage. They face social
discrimination as well as suffer from the drawbacks of unorganised sector
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Eco L2 – Sectors of the Indian Economy Public and Private Sectors
6
• Major objective is profit
• Major objective is Service
• RIL, TATA Group of companies, M and M,
• Secondary objective is profit
Infosys are some examples
• BHEL, BEL, HAL are some examples
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Eco L2 – Sectors of the Indian Economy Public and Private Sectors
• There are developmental activities which requires huge investment but there is no return
for investment. Construction dams, bridges, roads are some examples.
• There are some economic activities that govt. must support. For example, supplying
electricity at subsidised prices to small industries and households.
• Taking care of the poor is the responsibility of the Govt. Hence the PDS (Public Distribution
System)
• Providing free elementary education and basic health facilities to all is the responsibility
of the Govt. So, we need Public Sector
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