Chapter 2: Sectors of the Indian Economy

Economics • Class 10

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Chapter Analysis

Intermediate37 pages • English

Quick Summary

The chapter 'Sectors of the Indian Economy' in Class 10 Economics breaks down the Indian economy into three sectors: primary, secondary, and tertiary. It explains the nature of activities and employment within these sectors, focusing on the transition over time and the roles of organised and unorganised sectors. The chapter highlights the issues of underemployment in the primary sector and the growing significance of the service sector in GDP, despite less proportional employment growth. Furthermore, the chapter touches on the importance of both public and private sectors in the economy.

Key Topics

  • Primary, Secondary, and Tertiary Sectors
  • GDP and GVA
  • Organised and Unorganised Sectors
  • Public and Private Sectors
  • Employment Trends and Challenges
  • Disguised and Open Unemployment
  • Role of the Service Sector in Economic Growth
  • Sectoral Contributions to the Indian Economy

Learning Objectives

  • Understand the classification of economic activities into primary, secondary, and tertiary sectors.
  • Analyze the contribution of each sector to India's GDP and employment.
  • Distinguish between organised and unorganised sectors and their characteristics.
  • Identify the challenges and opportunities in the Indian economy across different sectors.
  • Explore the significance of the service sector in modern economic development.
  • Evaluate the role of government in balancing economic growth across sectors.

Questions in Chapter

Fill in the blanks using the correct option given in the bracket: (i) Employment in the service sector _________ increased to the same extent as production. (has / has not) (ii) Workers in the _________ sector do not produce goods. (tertiary / agricultural) (iii) Most of the workers in the _________ sector enjoy job security. (organised / unorganised) (iv) A _________ proportion of labourers in India are working in the unorganised sector. (large / small) (v) Cotton is a _________ product and cloth is a _________ product. [natural /manufactured] (vi) The activities in primary, secondary and tertiary sectors are_________ [independent / interdependent]

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Choose the most appropriate answer. (a) The sectors are classified into public and private sector on the basis of: (i) employment conditions (ii) the nature of economic activity (iii) ownership of enterprises (iv) number of workers employed in the enterprise

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Production of a commodity, mostly through the natural process, is an activity in _________ sector. (i) primary (ii) secondary (iii) tertiary (iv) information technology

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GDP is the total value of _________ produced during a particular year. (i) all goods and services (ii) all final goods and services (iii) all intermediate goods and services (iv) all intermediate and final goods and services

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In terms of GVA the share of tertiary sector in 2017–18 is between _________ per cent. (i) 20 to 30 (ii) 30 to 40 (iii) 50 to 60 (iv) 60 to 70

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Match the following: Problems faced by farming sector Some possible measures 1. Unirrigated land (a) Setting up agro-based mills 2. Low prices for crops (b) Cooperative marketing societies 3. Debt burden (c) Procurement of food grains by government 4. No job in the off season (d) Construction of canals by the government 5. Compelled to sell their grains to (e) Banks to provide credit with low interest the local traders soon after harvest

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Find the odd one out and say why. (i) Tourist guide, dhobi, tailor, potter (ii) Teacher, doctor, vegetable vendor, lawyer (iii) Postman, cobbler, soldier, police constable (iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio

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A research scholar looked at the working people in the city of Surat and found the following.

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Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.

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For each of the sectors that we came across in this chapter why should one focus on employment and GVA? Could there be other issues which should be examined? Discuss.

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Make a long list of all kinds of work that you find adults around you doing for a living. In what way can you classify them? Explain your choice.

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How is the tertiary sector different from other sectors? Illustrate with a few examples.

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What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.

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Distinguish between open unemployment and disguised unemployment.

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“Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.

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Service sector in India employs two different kinds of people. Who are these?

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Additional Practice Questions

Explain the significance of Gross Domestic Product (GDP) and Gross Value Added (GVA) in evaluating the economic health of a sector.

medium

Answer: GDP represents the total value of all final goods and services produced within a country's borders in a given time period, while GVA measures the value of goods and services produced in a sector, after adjusting for taxes and subsidies. GDP is used to gauge the size and health of an economy, whereas GVA helps in assessing the performance of individual sectors, providing a more detailed picture of economic contribution.

How do organised and unorganised sectors differ in terms of worker job security and benefits?

medium

Answer: Organised sectors are typically regulated by the government, offering job security, fixed work hours, and benefits like paid leave, provident fund, and pensions. In contrast, the unorganised sector includes smaller units often without government oversight, where workers face irregular employment without benefits, job security, or protection.

Discuss how advancements in the tertiary sector have impacted employment rates across other sectors in India.

hard

Answer: The growth of the tertiary sector, especially in IT and service support roles, has led to increased employment rates, but mostly for skilled workers. This growth has not been proportional to that of other sectors as many remain employed in agriculture or small-scale industries. While tertiary sector expansion creates new jobs, it often does not absorb those displaced by mechanisation in agriculture or automation in industries.

What challenges do farmers face in India, and what solutions can be proposed to alleviate them?

hard

Answer: Farmers in India face challenges like lack of irrigation, debt burden, low crop prices, and dependency on local traders. Solutions include providing subsidies for irrigation, establishing farmer cooperatives for better price management, governmental procurement policies to stabilize income, and improved access to affordable credit and insurance.

Evaluate the impact of the IT revolution on the structure of the Indian economy. Which sector saw the most significant changes?

easy

Answer: The IT revolution significantly transformed the tertiary sector, resulting in the rapid growth of IT services, IT-enabled services, and telecommunication. This brought about higher revenue generation and employment opportunities in urban areas, contributing significantly to GDP growth. Secondary sectors also saw changes due to increased demand for electronic goods.