SECTORS OF THE INDIAN ECONOMY

SUMMARY:

Primary sector:
When we produce goods by exploiting natural resources, it is an activity of
the primary sector.

Secondary sector:
Covers activities in which natural products are changed into other forms
through ways of manufacturing, it is also called as industrial sector.

Tertiary sector:

These are the activities that help in the development of the primary &
secondary sector. These activities by themselves do not produce good but they
are an aid and support to the production process. Example: Transportation-
Goods that are produced in the primary sector need to be transported by
trucks or trains and than sold in the wholesale and retail shops; Storage at
times it is necessary to store these products in godowns, which is also a service
made available. Communication -talking to others on telephone); Banking-
borrowing money from the banks. Since these activities are generate services
rather than goods it is also called Service sector.

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
sum of production in three sectors give Gross Domestic Product GDP of the
country. It is the value of all final goods and services produced within the
country during a particular year.

Underemployment:
This is the situation of where people are apparently working but all of them
are made to work less than their potential. This kind of underemployment is
hidden in contrast to someone who does not have a job. Hence, it is also
called disguised unemployment.

Mahatma Gandhi National Rural Employment Guarantee Act 2005,

(MNREGA 2005):
Under NREGA 2005, all those who are able to, and are in need of, work have
been 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.

AL SCIENCE (087) -22

Organised sector:
It covers those enterprises or places of work where the terms of employment
are regular and therefore, people have assured work.

Unorganized sector:
It is characterized by small and scattered units which are largely outside the
control of the government. There are rules and regulations but these are not
followed.

Public sector:
In this sector government owns most of the assets and provides all the
services.

Growing importance of Tertiary sector:

In any country several services such as hospitals , educational

institutions, post and telegraph services, police stations, courts, village
administrative offices, municipal corporations, defense, transport, banks,
insurance companies etc. are required.
The development of the agriculture and industrial leads to the
development of services such as transport, trade, storage and the like.
Greater the development of primary and secondary sectors more will be
demand of such services.
As the income level rise, certain sections of people start demanding
many more services like
eating out, tourism, shopping , private hospitals, professional training
etc. This is found especially in the big cities.
Over the past decade or so certain new services such as those based on
the information and communication technology have become important
& essential.

PRACTICE QUESTIONS:

no Questions
1.
Choose the correct meaning of organised sector:
(a) It covers those enterprises where the terms of employment are regular.
(b) It is outside the control of the government.
(c) Jobs are not regular.
(d) It provides low salaries.

2.
The value of all final goods and services produced within a country during
a particular year is called as:
(a) Gross Domestic Product
(b) Net Domestic Product

AL SCIENCE (087) -22

 (c) National Product
(d) Production of Tertiary Sector

3.
A situation in which more persons are employed on a job than are
optimally required is:
(a) Structural unemployment
(b) Disguised unemployment
(c) Cyclical unemployment
(d) Seasonal unemployment

4.
GDP stands for Gross Domestic Product. What does it show? Pick up the
correct statement given below:
(a) It shows how big is the economy of a country in a given year in terms of
its total output.
(b) It shows what the total product of a country in a given year without

(c) It shows the number of people involved in production in a particular

year.
(d) It shows the total value of trade trans-actions of a country in a
particular year.

5.
Study the graph given below and answer the questions that followed:

1. Which was the largest producing sector in 1973?

2. Which was the largest producing sector in 2003?
3. What is the contribution of secondary sector (%) to total GDP in 2003?
4.What is the approximate share of tertiary sector in GDP (%) in 1973?

AL SCIENCE (087) -22

6.
Where will you find the disguised unemployment most? Select the correct
option from those given below:
(a) Among agricultural workers working for small farm lands
(b) Among part-time industrial workers
(c) In most of the government offices
(d) In big private companies

7.
____________ refers to the activities which are undertaken by people with
the object of earning money.
(a) Organised activities
(b) Unorganised activities
(c) Economic activities
(d) Noneconomic activities

8.
A housewife looking after the household is an example of ____________ .
(a) Organised activities
(b) Unorganised activities
(c) Economic activities
(d) Noneconomic activities
9.
---------------------------------------are those goods which are used up in the
production process to make final goods and services.
(a) Primary goods
(b) Secondary goods
(c) Intermediary goods
(d) Private goods
10.

particular year.
1. all goods and services
2. all final goods and services
3. all intermediate goods and services
4. all intermediate and final goods and services

11.
Who among the following fall under the organized sector?
(a) Raghu, a daily wage labourer working in a dam site under a
contractor.
(b) Nafeesa, a doctor getting all employment benefits.
(c) Purushothaman, a cleaning staff in a private bank.
(d) Ammini, a tailor stitching clothes at his home.

AL SCIENCE (087) -22