creativetouch.

in

Sectors of the Indian Economy

➢Sector of Economic Activities
➢Comparing the Three Sectors
➢Historical Change in Sectors (Dev. Country)
➢Rising importance of the Tertiary sector in production
➢Where are most of the people employed
➢How to Create more Employment
➢Division of sectors as organised & unorganised
➢How to protect workers in the Unorganised sector
➢Public & Private Sector

www.mindtrees.co.in
 Sector of Economic Activities creativetouch.in

Economics is a social science

that deals with the
production, distribution and
consumption of goods and
services.

What does
economy mean ?

www.mindtrees.co.in
 Sector of Economic Activities creativetouch.in

What does economy mean ?

Economy

Producers Consumers

 The economy is the production & consumption activities

that determine how scare resources are allocated in an
area. It includes everything related to the production and
consumption of goods & services.
www.mindtrees.co.in
 Sector of Economic Activities creativetouch.in

www.mindtrees.co.in
 Sector of Economic Activities creativetouch.in

P P S

S S T

T T

www.mindtrees.co.in
 Sector of Economic Activities creativetouch.in

Primary Sector

Secondary Sector

Tertiary Sector

www.mindtrees.co.in
 Sector of Economic Activities creativetouch.in

Primary Sector
Resource based & Extractive based
activities.

Secondary Sector
Manufacturing based activities

Tertiary Sector
Service based activities

Quaternary Sector
Knowledge based activities

Quinary Sector
Intellectual based macro level activities
www.mindtrees.co.in
 Sector of Economic Activities creativetouch.in

Primary
Sector

Agriculture &
related sector

Forms the base

for all other
sector

E.g. Cotton,
Dairy, Minerals
& ores.
www.mindtrees.co.in
 Sector of Economic Activities creativetouch.in

Secondary
Sector

Manufacturing or
Industrial Sector

Natural products are

changed into other
forms through ways of
manufacturing

E.g. Yarn & cloth

Sugar, Brick

www.mindtrees.co.in
 Sector of Economic Activities creativetouch.in

Tertiary
Sector

Service Sector

Essential for the

development of
primary & secondary
sector

E.g. Transport,
Storage, Banking
www.mindtrees.co.in
 Sector of Economic Activities creativetouch.in

Primary Secondary Tertiary

Sector Sector Sector
Agriculture Manufacturing
Service Sector
& related or Industrial
sector Sector

Essential for the

Forms the Natural products development of
base for all are changed into primary &
other sector other forms secondary sector
through ways of
manufacturing
E.g. Cotton,
Dairy, E.g. Transport,
Minerals & Storage, Banking
ores. E.g. Yarn & cloth
Sugar, Brick
www.mindtrees.co.in
 Comparing the Three Sectors creativetouch.in

How to count the

various goods & Precaution
service produced
Value of only final goods &
Values rather than goods
services to be included in
& services
calculation

As because value of
intermediate goods already
included

This will lead to problem of

double counting
www.mindtrees.co.in
 GDP creativetouch.in

Gross Domestic Product

The value of all final

goods & services produced
within a country in a
financial year

www.mindtrees.co.in
 Historical Change in Sectors creativetouch.in

Primary Sector

DEVELOPED
Initial stages of development

Primary sector was the most important

COUNTRY
Gradually method of farming changed
& agriculture sector began to prosper.

Most people employed in this sector.

www.mindtrees.co.in
 Historical Change in Sectors creativetouch.in

Secondary Sector
DEVELOPED

Second stages of development

New method of manufacturing

introduced
COUNTRY

Factory came up

Gradually became the most important

in total production & employment.
www.mindtrees.co.in
 Historical Change in Sectors creativetouch.in

Tertiary Sector
DEVELOPED

Further shift from secondary to tertiary

sector

Service sector become the most

important
COUNTRY

In terms of total production

Most of the working people are now

employed in this sector
www.mindtrees.co.in
 creativetouch.in

www.mindtrees.co.in
 Rising importance of the Tertiary sector in Production
creativetouch.in

Reasons
Most basic services is being provided
by govt. like Hospital, police station.

Dev. of agriculture & industry lead to

dev. of services. Like transport, trade.

Due to rise in income, people start

demanding many more services like
eating out, tourism, pvt. school.

Dev. of IT sector
www.mindtrees.co.in
 Where are most of the people employed creativetouch.in

www.mindtrees.co.in
 Where are most of the people employed creativetouch.in

underemployment

Disguised unemployment

It is a situation where more people are employed

for the same work than actually required.

For example : the family of a small farmer in a

rural area.
www.mindtrees.co.in
How to Create more Employment creativetouch.in

Steps :

Education & health sector

Agriculture allied activities like horticulture,

pisciculture should be promoted

Establishing small scale industries

Cheap credit

Social safety programmes like MGNREGA,

Ayushman Bharat should be promoted.
 How to Create more Employment creativetouch.in

MGNREGA 2005

Right to Work : Implemented in 625 districts

Mahatma Gandhi National Rural Employment

Guarantee Act 2005

Guaranteed 100 days of employment

If govt. fails : provide unemployment allowance

www.mindtrees.co.in
 Division of sectors as organised & unorganised creativetouch.in

Organised Sector Unorganised Sector

Registered by the govt. Small & scattered

Follow rules & Do not follows rules &

regulations regulations

Such as Factories act, Such as Factories act,

minimum wages act minimum wages act

No security of
Security of employment
employment

Fixed working hours No Fixed working hours

Paid leaves, pension No Paid leaves, pension

www.mindtrees.co.in
 How to protect workers in the Unorganised sect creativetouch.in

Rural Areas
Landless Agricultural labourer

Small & marginal farmer

Sharecroppers & artisans

Need to be protected

Farmers need to be supported through

Timely delivery of seeds, agriculture inputs

credit, storage facilities & marketing outlets

www.mindtrees.co.in
 How to protect workers in the Unorganised sect creativetouch.in

Urban Areas
Workers in small-scale industry

Casual workers in construction,

Trade & Transport, Street vendors,

head load workers, Garment makers, rag picker.

majority of them are from SC,ST & BC

Besides irregular & low income they also face

social discrimination

www.mindtrees.co.in
Protection & support are necessary
 Public & Private Sector creativetouch.in

Public Private
Govt. owns most of Private owns most of
the assets the assets

& provide all the And provides

services services

E.g. Railways, Post

E.g. TISCO, RIL
office

www.mindtrees.co.in
Service motive Profit motive
 Which of the following are Public Sector Companies? creativetouch.in

www.mindtrees.co.in
 Quiz Time creativetouch.in

Which of the following statement

In term of GDP the share of is not true regarding MGNREGA
tertiary sector in 2013-14 was: 2005

 Between 30% to 40%  Initially implemented in 200

district.
 Implemented in rural & urban
 Between 40% to 50%
areas.
 Guaranteed 100 days of
 Between 50% to 60% employment.
 If the govt. fails to provide
 Between 60% to 70% employment within 15 days, will
give allowances.

www.mindtrees.co.in
 Quiz Time creativetouch.in

Which of the following statement

In term of GDP the share of is not true regarding MGNREGA
tertiary sector in 2013-14 was: 2005

 Between 30% to 40%  Initially implemented in 200

district.
 Implemented in rural & urban
 Between 40% to 50%
areas.
 Guaranteed 100 days of
 Between 50% to 60% employment.
 If the govt. fails to provide
 Between 60% to 70% employment within 15 days, will
give allowances.

www.mindtrees.co.in