P S: 1. is also called agriculture and related sector.

2. producing a good by exploiting natural resources.

S S: 1. natural products are changed into other forms through ways of manufacturing.
2. product is not produced by nature but has to be made.
T S: 1. helps in the development of the PS & SS.
2. generates services rather than goods.
3. may not directly help in the production of goods, i.e. teachers, doctors etc.

Intermediate goods: Used up in producing final goods services not used in measuring GDP.
Final goods: Used by consumers or for investments.
GDP (Gross Domestic Product) -
- It is the sum total of the value of final goods & services produced of all 3 sectors within a
country during a particular year.
- It is measured by central govt. ministry.
* Comparison of 3 sectors in GDP & employment

1. Primary sector – Employment max. - GDP min.

2. Tertiary sector – Employment min - GDP max.
Effect:

- Disguised unemployment

- Creates gap between rich poor in 1972 – 2014

- Due to NEP (new economic policy) Gap 

- Industrial output  9 times – employment  3 times

- Production in service  14 times employment  5 times

- Agricultural employment is more than ½ but GDP is 1/4
- Secondary and service output is 4/5 of GDP but employment is less than 1/2
Rising importance of service sector

1. Provides basic service - Bank, insurance etc. -In developing nations it is done by govt.

2. Development of PS & SS leads to development of service such as transport, trade etc.

3. Rise in income level reads to new demand, like, eating out, tourism, shopping etc.

4. IT and new service

Methods to increase employment in rural areas:

1. Alternative jobs
2. Small scale industries
3. MGNREGA -2005 - Right to work - implemented in about 625 distt.
4. Transport, banking, cold storage, market, tourism
5. Modern means of irrigation
6. Banking – Provide cheap loan for longer period
7. New jobs by expanding tourism, regional craft industry, new services like IT.

Fact: 60% population in India belongs to age group 5 – 29 years out of this only 51%
attending educational institute.
→ Planning Commission has been replaced by NITI Aayog – estimates that nearly 20 lakh
jobs can be created in the education sector alone.
→ Nearly 80 per cent of rural households in India are in small and marginal farmer
category.

* Organised sector:

- Assured jobs, registered by the govt. under factory act, min wages act, payment of
gratuity act, paid leave, medical facilities.
* Unorganised sector:
- Low paid, no regular jobs, no overtime, no paid leave or holidays.
* Vulnerable groups - Landless agricultural labourers, small and marginal formers, casual
worker, venders rag picker, SC, ST etc.
* Private sector: Owned by individuals, profit is main motive, i.e. Bajaj auto, Hindustan Lever
* Public sector : Owned & run by state, welfare of people is main motive, i.e. railway, IOC
Role of public sectors in Indian Economy

1. Spending large sums for infrastructures

2. Govt. need to support some activities , like, electricity production and supply.
- Subsidy …..fair price shop
3. Health & education….facilities
4. Human development : Control IMR, safe drinking water, food & nutrition. IMR of
Odisha is 40 and MP is 48.