RISHS INTERNATIONAL SCHOOL, MANGADU, CHENNAI – 122.

GRADE: 10
SUBJECT: SOCIAL(ECONOMICS)
TOPIC: SECTORS OF THE INDIAN ECONOMY
Answer the following
1. Examine the rising importance of the tertiary sector in India.
Importance of the tertiary sector
Tertiarty sector does not produce any good but provides in which aid in the development of
industry and agriculture.
Basic services providing sector
Tertiary sector provides basic services like banking, hospitals, transportation, teaching,
medicine etc…
Development of agriculture and industry
Development of agriculture and industry leads to the development of services like trade,
transport and storage. Therefore , it leads to the development of tertiary sector.
Rise in income levels
Because of the rise in income levels, people have started resulting more luxurious services
like eating out private sites, private schools etc…
Development in New services
New services like transportation, technology have come in industry. They have generated a
lot of employment as well as increased value of tertiary sector.
2. Why is the tertiary sector becoming important in India?
The need for tertiary sector is increasing as there is more need of services like financial
institutions, educational institutions etc.. in Indian economy.
The tertiary sector has created huge employment even for the uneducated and unskilled
workers.
The tertiary sector has created new services based on information and communication
technology which are essential in a global world with technological advancement.
The tertiary sector accounts for most of the national and per capita income of India.
The tertiary sector is responsible to distribute its services and goods to different consumers.
3. Compare the employment conditions prevailing in the organized and unorganized
sector.
(i) Organised sector:
Organised sectors are registered by government and have to follow its rules and regulations
such as Factories Act, Minimum Wages Act, Payment of Gratuity etc..
Workers in this sector enjoy security of employment.
They are expected to work only a fixed number of hours.
They get paid leave.
When they retire, these workers get pension as well.
(ii) Unorganised sector:
The unorganized sector is characterized by small and scattered units which are largely outside
the control of government.
There are rules and regulations, but these are not followed. Job is low paid and often not
regular.
There is no provision for overtime and paid leave.
Employment is subjected to high level of insecurity.
People can be asked to leave without any reason.
The declining nature of agriculture in the Gross Domestic Product (GDP) is a matter of
serious concern in India. Support the statement.
4. The declining share of agriculture in the Gross Domestic Product (GDP) is a matter
of serious concern in India because of the following reasons:
(i) Indian farmers are facing challenge from international competitors which is a matter of
problem.
(ii) The government is reducing investment in the agricultural sector especially the irrigation
sector.
(iii) There is a decrease in the subsidy in fertilizers that leads to a rise in the cost of
production.
(iv) There has been a reduction in import duties on agricultural products due to which cheap
agricultural products are coming from abroad.
(v) Farmers are withdrawing their investment in the agricultural industry thus causing a
downfall in employments.
5. Workers are exploited in the unorganised sector. Do you agree with this view? Give
reasons in support of your answer.
The unorganised sector is characterised by small and scattered units, which are largely
outside the control of the government. There are rules and regulations but these are not
followed. Jobs here are low paid and not regular. Hence, it is correct to say that workers are
exploited in the unorganised sector because more work is taken from them in comparison to
what they are paid. They have no provisions for extra pay for overtime and no medical
benefits. The biggest problem in working in this sector is that there is no job security.
6. The workers in the unorganised sector need protection on the following issues :
wages, safety and health. Explain with examples.
The unorganised sector is characterised by small and scattered units, which are largely
outside the control of the government. There are rules and regulations but these are not
followed. The workers in the unorganised sector need protection:

Wages: The income of workers in the unorganised sector is not fixed and they are barely able
to meet the needs to lead a decent livelihood. Hence proper and fixed wages should be given
to these workers so that they can grow and contribute to the growth of the country. For
example – a painter only gets paid the wages for the days he works and on the other days, he
is jobless and is able to earn nothing.

Safety: No safety is provided to the workers working in the unorganised sector. There is no
job security and anyone can be fired and removed from their work as per the requirement of
the labourers. For example – A labour working in the construction of a building is left with
no work once the construction is complete and has no guarantee of getting work again.

Health: Health is a very important factor for the growth and development of the country. The
unorganised sector is given no medical security and if any accident occurs while they are
working, the employer is not responsible for their health. For example – there is no sick leave
for labourers working on daily wages.
7. Using examples from your area, compare and contrast the activities and functions of
private and public sectors.
PRIVATE SECTOR PUBLIC SECTOR
In the private sector, the assets and In the public sector, industries and
industries are owned by individuals enterprises are owned by the Government.
Private sector works to earn profits The public sector works to provide facilities
to the public and to earn profits.
The common examples of the private sector The common examples of the public sector
that we can see around us are IT companies, that we can see around us are Government
malls and multiplexes, etc. Banks, Post Offices, municipal hospitals
and Indian railways

8. Give a few examples of public sector activities and explain why the government has
taken them up.
The public sector activities are set for the betterment of the public itself.
The reason the government has taken up the public sector is so that proper facilities can be
provided to the people of the country. Banks, transport, irrigation, electricity, water and all
the basic things that are necessary for people, come under the public sector.
Public sector creates employment opportunities.
It ensures equality of income, wealth and thus, a balanced regional development.
It encourages development of small, medium and cottage industries.
It ensures easy availability of goods at moderate rates.
It contributes to community development, human development index, i.e health and
educational services etc…
Providing these facilities to its citizens is the responsibility of the Government.
9. Explain the objective of implementing the NREGA 2005.
The National Rural Employment Guarantee Act, 2005 was introduced with an aim to ensure
guaranteed 100 days of employment in a year to all those who are in need of work. It also
states that in the case of employment not being provided under this act, employment wages
will be given to those left unemployed. Additional employment opportunities need to be
created for people in villages and smaller towns.

10. Service sector in India employs two different kinds of people. Who are these?
Service sector in India employs two different types of people. These people are:

1. Highly Skilled labour, which includes teachers, bankers, IT officials, etc. These
people are permanently employed.
2. Less Skilled Labour, which includes vendors, electricians, plumbers, etc. These
people are not permanently employed.
11. What do you understand by disguised unemployment? Explain with an example
each from the urban and rural areas.
Disguised employment
The situation of underemployment, where people are apparently working but all of them are
made to work less than their potential is called disguised unemployment. In this case, the
person considers himself employed but is actually not working.
Rural areas
In rural areas, where agriculture is the main source of income, this kind of unemployment
can be seen often. If a piece of land requires only three people to work on it and instead five
people are working on it, then the two extra people are said to be in a situation of disguised
unemployment.
Urban areas
In urban areas, disguised unemployment is seen when painters, plumbers, electricians are
unable to find work on a daily basis and work way less than their potential.

12. Distinguish between open unemployment and disguised unemployment.

Answer: Open unemployment is when a person is willing to work, is educated but is unable
to get a job and work. This kind of unemployment is visible.
On the other hand, disguised unemployment is when a person is apparently working but is
made to work less than his or her potential. This kind of employment is quite evident in
villages where people working in farms consider themselves employed but are actually
working less than their potential.
13. Do you think the classification of economic activities into primary, secondary and
tertiary is useful? Explain how.
The classification of economic activities into primary, secondary and tertiary is useful, as it
helps to classify the different occupations that are taken up by the people in the country and
how much each sector contributes to the growth of the country. It is also important because it
helps in asserting that which sector contributes the most in the GDP and which sector has the
scope to employ more people and increase the National Income.
14. : Give three examples of Public Sector activities and explain why the government
has taken up them.
The examples are:
Railways: The government has taken up it for the following reasons –
1. Only the government can invest large sums of money on the public project with long
gestation period.
2. To ensure and provide transportation at cheap rate.

NTPC: The government has taken up it to provide electricity at a lower rate than the actual
cost of production. The aim is to protect and encourage the private sector especially small
scale industries.

AIIMS: To provide quality health services at reasonably cheap rate was the main purpose of
the government to start this.
15. Highlight few ways to increase employment in India. (or) How can employment be
increased in both rural and urban areas? Explain.
The way to increase employment in India are
(i) The government/banks can provide loans at cheap rates to the small farmers to improve
their irrigational facilities like constructing a well, so that they can irrigate their land well and
get two or three crops a year instead of one. Thus, more people can be employed in the same
field.
(ii) The government can help to promote and locate industries and services in semi-rural areas
where a large number of people may be employed. For example, setting up a dall mill,
starting or promoting honey collection etc..
(iii) The government banks can assist in promoting small-scale industries, small scale
manufacturing units, agro-processing industries and providing loans for the same.
(iv) If more dams are built and canal water is provided to all the small farmers, then a lot of
employment can be generated in the agricultural sector.
(v) If more money is spent on transportation and storage, then not only small farmers will be
benefitted but many more people can be employed in transport and storage sector.
(vi) Investing more in tourism and opening of new IT services employing more youth in these
sectors.