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10th Ecomonics Cbse

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10th Ecomonics Cbse

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Anita Devaprabhu
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Notes of Ch 2 Sectors of Indian Economy|

Class 10th Economics


• Three sectors of Economy
• Comparison of three sectors of the Economy
• Difference between organised and unorganised sectors
• Classification of economic activities

Economic Activities

• Those activities which generates some income are known as


economic activities.
→ For example, a computer engineer creating software for profit
is making money from his work.

• Division of Economic Activities:


→ Primary sectors: related to farming activities.
→ Secondary sectors: related to manufacturing.
→ Tertiary sector: provide support to other two sectors.

Comparison of three sectors of the Economy (Through


productivity and population)

• As thousands of economic activities going around in all three


sectors, it makes almost impossible to take account of every such
activities.

• We check only final goods and services.

• for example, a farmer who sells wheat to a flour mill for Rs 8 per
kg.
→ The mill grinds the wheat and sells the flour to a biscuit
company for Rs 10 per kg.
→ The biscuit company uses the flour and things such as sugar
and oil to make four packets of biscuits.
→ It sells biscuits in the market to the consumers for Rs 60 (Rs 15
per packet).
→ Biscuits are the final goods, i.e., goods that reach the
consumers.
Gross Domestic Product (GDP)
• The value of final goods and services produced in all three
sectors during a particular year provides the total production of
the sector for that year is called the Gross Domestic Product
(GDP) of a country.

• More the GDP, more bigger the economy of the country is


Historical Changes in sectors

• At initial stages of development, primary sector was the most


important sector of economic activity in a country.

• With the innovation in farming methods, agriculture sector


began to produced much more food than before.

• People started working in industries. 5. Some people also get


involved in transportation.

• Gradually, Secondary sector became the most important in


economy and providing employment. 2.

• Different industries related to food processing, equipment’s


making, textiles coming in large numbers.

• This lead to start of services such as banking, health, education


etc.

• The service sector has become the most important sector in


terms of total production and started employing more people.

Contribution in GDP

• In the period of 1973-74, the primary sector has contributed


maximum to the GDP
• But in 2013-14 when tertiary sector has contributed maximum
in GDP. Now the question is Why? There are various factors
behind this. Let’s study these in detail.
Factors behind the shift in contribution in GDP
• The development of agriculture and industry leads to the
development of services such as transport, trade, storage,
banking.

• The greater the development of the primary and secondary


sectors, more would be the demand for such services.

Where are most of the people employed?


• In 2013-14, the percent of contribution of tertiary sector in GDP
of the country increased and reached to 67%

→ The primary sector reduced to only 12%.


→ The primary sector continues to be the largest employer during
2011-12.

Disguised Unemployment
• More people engaged in agriculture than the necessity.

• This kind of underemployment is hidden in contrast to someone


who does not have a job and is clearly visible as unemployed, it is
also called disguised unemployment.

How to create employment?

• Granting Loans at lower interest Rate

• Investing in infrastructure such as Building a dam at suitable


place.

• Increasing efficiency of transportation and Storage.


• Promoting small scale Industries such as mills, honey collection
centers.

• Emphasis on Education and training center.

• Identifying Potential of an area. For example, an area can be


developed as tourist site.

• Government Welfare Schemes like making well or pump near


farms, providing electricity, building hospitals.

MGNREGA

• The central government in India made a law implementing the


Right to Work in 625 districts called Mahatma Gandhi National
Rural Employment Guarantee Act 2005 known as MGNREGA
2005.

• Under MGNREGA 2005:

→ In rural areas, all those who are able to, and are in need of work
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.

Difference between Organised and unorganised sectors

• Organised sector are registered by the government and have to


follow its rules and regulations while unorganised sector are
largely outside the control of the government.
• Workers in the organised sector enjoy security of employment
while in the unorganised sector, there is no job security.

• Organised sector are expected to work only a fixed number of


hours while in unorganised sector, there is no pay for overtime
working.

• Organised sector workers get paid leave, payment during


holidays, provident fund, gratuity, medical benefits etc while no
such benefits are given in unorganised sector.

• Examples of organised sectors are government employees,


banks while examples of unorganised sectors are home tutors,
person working in small general stores.

Classification of Economic activities into sectors (on the


basis of who owns assets and is responsible for the
delivery of services)

Activities can be classified into two types:

• Public sector:
→ The government owns most of the assets and provides all the
services.
→ Example: Railways or post office

• Private sectors:
→ Ownership of assets and delivery of services is in the hands of
private individuals or companies.
→ Example: Tata Iron and Steel Company Limited (TISCO) or
Reliance Industries Limited (RIL).

NCERT Solutions of Chapter 2 Sectors of Indian Economy


Extra Questions of 2 Sectors of Indian Economy

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