Sectors of the Indian Economy - Class 10 Social Science - Chapter 2 - Notes, NCERT Solutions & Extra Questions
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Extra Questions - Sectors of the Indian Economy | Understanding Economic Development | Social Science | Class 10
Consider the following statements with reference to core sectors of India:
These are groups of industries that have a multiplier effect on the Indian economy.
While measuring core inflation in India, data from the core sectors are excluded.
Core sectors of the economy have a direct bearing on the balance of trade.
Electricity has the highest weightage in the Index of Industrial Production (IIP) released by the Central Statistical Organisation (CSO).
Which of the above-given statements is/are correct?
The correct answer is: C
Statements 1 and 3 are correct
Explanation:
Statement 1:
Core industries have a multiplier effect on the economy. They act as the backbone and significantly impact other industries in the economy. In India, the eight core industries together constitute 40.27% of the total weight of items included in the Index of Industrial Production (IIP).
Statement 2:
Core inflation represents the long-run trend in the price level by excluding short-term volatility. For measuring core inflation, volatile price items like food and energy are generally excluded. However, in India, while measuring core inflation, only food and energy prices are excluded, and other sectors are included. This statement about excluding core sectors is therefore incorrect. The data for IIP and Consumer Price Inflation are released separately.
Statement 3:
The balance of trade is the difference between the value of a country’s imports and exports during a specific period. The core sectors of an economy, including industries like crude oil, steel, and coal, are significant components of the trade basket. Changes in the core sectors directly impact the balance of trade, thus making this statement correct.
Statement 4:
The Index of Industrial Production (IIP) provides monthly data on the growth of various economic sectors such as mining, electricity, and manufacturing. Petroleum and Refinery products have the highest weight in the IIP at around 28%, while electricity has a weightage of approximately 19%. Thus, the statement that electricity has the highest weightage is incorrect. The correct decreasing order of core industry weights is: Refinery Products > Electricity > Steel > Coal > Crude Oil > Natural Gas > Cement > Fertilizers.
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__________ coordinates the other three factors of production.
A. Organisation
B. Capital
C. Land
D. Labour"
The correct answer is A. Organisation.
Organisation is the factor that coordinates the other three factors of production: land, labor, and capital.
Which of the following can be categorized as major sectors in an economy?
Household
Defence
Enterprise
Wholesale trade
Select the correct answer using the code given below:
A. 1 and 2 only
B. 3 and 4 only
C. 1 and 3 only
D. 2 and 4 only
The correct option is C: 1 and 3 only.
Statement 1 is correct: Major sectors of an economy typically include the household sector, alongside enterprise, government, and external sectors. Households play a crucial role in consumption decisions, making this sector essential.
Statement 2 is incorrect: While defence is an important element, it falls under the government sector rather than being a separate major economic sector.
Statement 3 is correct: The enterprise sector is certainly a major segment of the economy as it includes all forms of businesses and economic activities that produce goods and services.
Statement 4 is incorrect: Wholesale trade is an activity within the enterprise sector and not a standalone major sector of the economy.
Extra Information:
In economies, both developed and developing, the State plays an integral role that extends beyond the private capitalist interactions, dealing with legal frameworks and justice. Besides firms and the government, the household sector is pivotal, where consumption decisions are made either individually or collectively. Furthermore, engagement in external trade marks the global economic interactions, classifying it as another critical sector. Thus, understanding these sectors helps in comprehending economic structures and dynamics effectively.
In an entrance exam, there were four sections, each of 50 marks. The marks secured by Satyam in each section are shown below:
Subject | Aptitude | General Mathematics | General Awareness | English |
---|---|---|---|---|
Marks | 45 | 40 | 35 | 40 |
What is the percentage of marks scored by him in each section?
A) $95%, 80%, 70%, 80%$
B) $95%, 85%, 75%, 85%$
C) $90%, 80%, 70%, 80%$
D) $95%, 85%, 70%, 85%$
The correct answer is Option C
$$ 90%, 80%, 70%, 80% $$
Calculation of percentage marks in each section:
Aptitude:$$ \text{Percentage} = \frac{45}{50} \times 100 = 90% $$
General Mathematics:$$ \text{Percentage} = \frac{40}{50} \times 100 = 80% $$
General Awareness:$$ \text{Percentage} = \frac{35}{50} \times 100 = 70% $$
English:$$ \text{Percentage} = \frac{40}{50} \times 100 = 80% $$
Therefore, the percentages of marks scored by Satyam in Aptitude, General Mathematics, General Awareness, and English are 90%, 80%, 70%, and 80% respectively.
One of the disadvantages of the Wholesale Price Index in India is that:
A) it does not cover the services sector;
B) it is not available for individual commodities;
C) it is available only on a monthly basis;
D) it is available only at constant prices.
The correct answer is A) it does not cover the services sector.
Option A captures the primary disadvantage as the Wholesale Price Index (WPI) in India focuses primarily on goods and does not include the services sector within its scope of measurement. This lack of inclusion significant since services make up a large portion of India's economy.
The most widely observed economic system today is a/an ________ economy.
A) communist
B) socialist
C) mixed
D) Asiatic
The correct option is C) mixed.
The most extensively used economic system today is the mixed economy. In this system, both the government and the market hold significant roles in economic decision-making.
Disguised unemployment is prevailing in which of the following sectors?
A) Manufacturing sector
B) Agricultural sector
C) Industrial sector
D) Service sector
The correct answer is B) Agricultural sector
Disguised unemployment is predominantly observed in the agricultural sector. In rural areas of countries like India, about 25% to 30% of the working population experiences this form of unemployment.
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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]
(i) Employment in the service sector has not increased to the same extent as production.
(ii) Workers in the tertiary sector do not produce goods.
(iii) Most of the workers in the organised sector enjoy job security.
(iv) A large proportion of labourers in India are working in the unorganised sector.
(v) Cotton is a natural product and cloth is a manufactured product.
(vi) The activities in primary, secondary and tertiary sectors are interdependent.
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
(iii) ownership of enterprises
Explanation: Classification into public and private sectors is based on ownership of enterprises. Public sector enterprises are owned by the government whereas private sector enterprises are owned by individuals or companies.
Production of a commodity, mostly through the natural process, is an activity in _________ sector.
(i) primary
(ii) secondary
(iii) tertiary
(iv) information technology
(i) primary
Explanation: Production mostly through natural processes refers to the primary sector, which involves activities like agriculture, fishing, and mining.
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
(ii) all final goods and services
Explanation: GDP is the total value of all final goods and services produced within a country during a particular year, not including intermediate goods to avoid double counting.
In terms of GDP the share of tertiary sector in 2013-14 is between _________ per cent.
(i) 20 to 30
(ii) 30 to 40
(iii) 50 to 60
(iv) 60 to 70
(iv) 60 to 70
Explanation: The share of the tertiary (service) sector in GDP has generally increased over time, and in many economies, it accounts for a significant portion, often between 60 to 70 percent, as services become more dominant in economic activities.
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 the local traders soon after harvest | (e) Banks to provide credit with low interest |
Unirrigated land
(d) Construction of canals by the government
Low prices for crops
(c) Procurement of food grains by government
Debt burden
(e) Banks to provide credit with low interest
No job in the off season
(a) Setting up agro-based mills
Compelled to sell their grains to the local traders soon after harvest
(b) Cooperative marketing societies
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
(i) Tourist guide, dhobi, tailor, potter
Odd One Out: Tourist guide
Reason: Tourist guide services involve helping and guiding tourists, which is more service-oriented involving interaction and information exchange, while dhobi (washerperson), tailor, and potter are all traditional crafts or tasks typically involving skilled manual labor.
(ii) Teacher, doctor, vegetable vendor, lawyer
Odd One Out: Vegetable vendor
Reason: A vegetable vendor is primarily involved in the selling of physical goods (vegetables), which is a form of trade. In contrast, teacher, doctor, and lawyer professions provide specialized services based on professional knowledge and qualifications.
(iii) Postman, cobbler, soldier, police constable
Odd One Out: Cobbler
Reason: A cobbler primarily focuses on repairing shoes which is a form of skilled manual work. All the other professions (postman, soldier, police constable) are forms of government service roles involved in security, administration, or public facilitation.
(iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio
Odd One Out: Jet Airways
Reason: Jet Airways was a private sector company unlike MTNL, Indian Railways, Air India, and All India Radio, which are all public sector undertakings owned and operated by the government of India.
A research scholar looked at the working people in the city of Surat and found the following.
Place of work | Nature of employment | Percentage of working people |
---|---|---|
In offices and factories registered with the government | Organised | 15 |
Own shops, office, clinics in marketplaces with formal license | 15 | |
People working on the street, construction workers, domestic workers | 20 | |
Working in small workshops usually not registered with the government |
Complete the table. What is the percentage of workers in the unorganised sector in this city?
Place of work | Nature of employment | Percentage of working people |
---|---|---|
In offices and factories registered with the government | Organised | 15 |
Own shops, office, clinics in marketplaces with formal license | Organised | 15 |
People working on the street, construction workers, domestic workers | unorganized | 20 |
Working in small workshops usually not registered with the government | unorganized |
|
Now, combining percentages of the organized and unorganized sectors already identified:
Organized sector: 15% (offices and factories) + 15% (licensed individual businesses) = 30%
Unorganized sector: 20% (informal street workers, construction, domestic)
To find the remaining percentage (for small workshops usually not registered with the government), we assume a total workforce involvement of 100%. So:
Remaining % = 100% - (30% + 20%) = 50%
Given that small workshops, typically unregistered with the government, fall into the unorganized sector, this 50% would also be classified under unorganized employment.
Adding this to the existing unorganized percentage:
Total unorganized sector: 20% (from street, construction workers, etc.) + 50% (from small unregistered workshops) = 70%
Therefore, the percentage of workers in the unorganized sector in Surat is 70%.
Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.
Yes, the classification of economic activities into primary, secondary, and tertiary sectors is highly useful. This categorization helps in understanding the structural composition of the economy, which aids policymakers in crafting targeted economic policies. It enables the identification of areas for investment and development, highlighting sectors that may need more infrastructure support or innovation. Additionally, analyzing these sectors separately allows for a clearer assessment of employment distribution and resource allocation, promoting more effective strategies to tackle unemployment and enhance skill development. Such classifications also facilitate international comparisons of economic development stages, assisting in global economic analyses and forecasting. Overall, this differentiation provides foundational insights necessary for comprehensive economic planning and intervention.
For each of the sectors that we came across in this chapter why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.
Employment and GDP are pivotal metrics for understanding economic health in the primary, secondary, and tertiary sectors. Focusing on employment reveals the capacity of these sectors to create jobs, alleviate poverty, and stabilize societal welfare. Tracking GDP contributions, on the other hand, highlights the economic productivity and efficiency of each sector, guiding policy decisions aimed at fostering growth.
However, other crucial issues also merit attention. Sustainability across sectors ensures long-term economic and environmental viability. Also, focusing on workplace conditions and workers' rights in the informal segments of each sector is essential to improve labour equity. Moreover, technological integration and innovation rates within sectors are key to maintaining competitiveness and addressing the changing market and environmental challenges efficiently.
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.
Here is a list of various jobs adults around me engage in:
- Teacher
- Doctor
- Software Developer
- Retail Store Manager
- Electrician
- Chef
- Bank Teller
- Farmer
- Construction Worker
- Car Mechanic
- Salesperson
- Graphic Designer
- Real Estate Agent
- Plumber
- Fitness Trainer
These occupations can be classified based on the economic sector they belong to: Primary, Secondary, and Tertiary. Primary includes jobs like Farmer which involve extracting natural resources. Secondary covers roles like Construction Worker and Car Mechanic that transform raw materials into finished goods. Tertiary, the largest group here, involves service-oriented jobs like Teacher, Doctor, and Bank Teller. This classification helps in understanding the contribution of each type of work to the economy and their interdependencies.
How is the tertiary sector different from other sectors? Illustrate with a few examples.
The tertiary sector, or service sector, is distinct from the primary and secondary sectors in that it does not focus on producing goods but rather on providing services that support the primary and secondary sectors. Examples include healthcare, education, banking, and transportation. Unlike the primary sector, which involves the extraction and harvesting of natural resources such as forestry and mining, and the secondary sector, which involves manufacturing and construction, the tertiary sector provides intangible goods like advice, experience, and discussion. For instance, doctors, teachers, and bankers all operate within the tertiary sector, offering essential services that contribute to the functioning and efficiency of the economy.
What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Disguised unemployment refers to a situation where more people are employed than actually needed. The extra people do not contribute to additional output, meaning their removal wouldn't affect productivity. Here are examples from both urban and rural settings:
Rural Area:
Consider a small family farm where six members are working, but the amount of work requires only three persons. All six are employed, but three of them are not contributing to increasing the farm's output. This excess labor doesn't diminish the yield, illustrating disguised unemployment. If three family members start working elsewhere, the farm's output remains unchanged.
Urban Area:
In an urban context, disguised unemployment can often be seen among street vendors. For instance, multiple people might be selling the same items in a small area, all battling for the same set of customers. Not all vendors are needed for the amount of business conducted. Their work adds little to the overall economic output, showing that some could likely find employment elsewhere without impacting the total sales on that street.
In both examples, removing the surplus workers would not reduce output, highlighting the inefficiencies and the potential for better employment placements.
Distinguish between open unemployment and disguised unemployment.
Open unemployment occurs when workers actively seek work but cannot find any. The lack of employment opportunities means these individuals are visibly out of work, representing a straightforward calculation of unemployment rates.
Disguised unemployment, on the other hand, exists where more people are employed than are actually necessary for a particular job. It is not reflected in official unemployment statistics. This form of unemployment is most prevalent in agricultural sectors where a portion of the labor force is excessive and without perceivable reduction in output, if withdrawn. Common in rural settings, it indicates underemployment or inefficiency rather than complete joblessness.
“Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.
I disagree with the statement that the tertiary sector is not playing a significant role in the development of the Indian economy. The tertiary sector, also known as the service sector, contributes significantly to India's GDP, illustrating its vital role in economic growth. With advancements in information technology and services, India has seen an increase in foreign exchange earnings, especially from IT exports. Employment opportunities generated by this sector have been substantial, offering jobs not only in urban areas but also contributing to rural development by providing various services like banking, education, and health. Furthermore, the sector supports the primary and secondary sectors through transportation, finance, and marketing services, proving crucial for the holistic economic development of the country. Hence, the tertiary sector is indeed pivotal in shaping a thriving Indian economy.
Service sector in India employs two different kinds of people. Who are these?
The Service sector in India employs two different kinds of people:
Highly skilled and educated workers: These employees are involved in more specialized and technical services.
Large number of workers in lower-skilled jobs: These include small shopkeepers, repair persons, transport workers, etc., who often barely manage to earn a living and are employed because no alternative opportunities for work are available to them.
Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
Yes, I agree that workers are exploited in the unorganised sector. This sector is characterized by irregular employment terms and lack of formal job contracts, leading to inconsistencies in wages and job security. Workers in this sector often receive wages below the minimum wage level, devoid of any legal protection or benefits such as pensions, paid leave, or health insurance, which are typically available to those in the organised sector.
Additionally, unorganised sector jobs lack safety standards, exposing workers to hazardous working conditions without adequate legal recourse. Employment is highly insecure, and workers can be dismissed without notice or cause. Furthermore, these workers often face long working hours without overtime compensation, violating basic labour rights. Therefore, the state of affairs in the unorganised sector starkly underscores the exploitation of its workforce.
How are the activities in the economy classified on the basis of employment conditions?
Activities in the economy are classified on the basis of employment conditions into two sectors: organised and unorganised sectors.
Organised Sector:
Covers enterprises or workplaces where the terms of employment are regular and assured.
Employees have assured work and are registered by the government, following various laws like the Factories Act, Minimum Wages Act, etc.
Benefits include paid leave, provident fund, gratuity, and medical benefits.
Workers enjoy security of employment, and there are stipulations for overtime and working conditions.
Unorganised Sector:
Consists of small and scattered units that are largely outside government control.
Employment here is often not regular, with no security, and laws are rarely followed.
Workers may not receive benefits such as overtime, paid holidays, or social security.
Jobs in this sector are characterized by low pay and lack of job security, with conditions heavily dependent on the employer’s discretion.
Compare the employment conditions prevailing in the organised and unorganised sectors.
Organised Sector:
Employment Security: Workers have assured job security.
Working Hours: Defined working hours and overtime is paid.
Benefits: Employees enjoy multiple benefits such as paid leave, holidays, provident fund, and gratuity.
Health and Safety: Compliance with health and safety standards is mandatory.
Regulation: Employment terms are regulated by government laws like Minimum Wages Act, Factories Act etc.
Retirement Benefits: Includes pensions and other post-retirement benefits.
Unorganised Sector:
Employment Security: No assurance of job security; employees can be dismissed without cause.
Working Hours: Often undefined; work without compensation for extra hours.
Benefits: Lack of benefits like paid leave, health insurance, or retirement plans.
Health and Safety: Frequently no adherence to safety standards; working conditions can be hazardous.
Regulation: Operations are usually not regulated or minimally regulated, with little to no government oversight.
Social Security: No provision for pensions or health insurance.
Explain the objective of implementing the MG NREGA 2005.
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005 primarily aims to enhance livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work. The act seeks to:
Create durable assets (such as roads, canals, ponds, and wells) to augment the natural resource base of rural areas.
Strengthen the economic base of rural areas through the creation of infrastructure.
Reduce rural-urban migration by providing employment opportunities locally.
Furthermore, MGNREGA 2005 ensures social inclusion by strengthening the livelihood resource base of the marginalized. In case the government fails to provide employment as per the act, it must pay an unemployment allowance, thus making it a rights-based approach with an accountability mechanism.
Using examples from your area compare and contrast that activities and functions of private and public sectors.
In my area, the public sector primarily encompasses services such as utilities (electricity and water), healthcare through government hospitals, and public schooling. These services are aimed at welfare objectives rather than profit-making. For instance, the public hospital provides free healthcare services to ensure that all individuals have access to medical care regardless of their economic status.
On the other hand, the private sector includes entities such as private hospitals, schools, and shopping centers, primarily driven by profit. Private hospitals and schools often offer more personalized services and boast higher-quality facilities compared to their public counterparts but at a higher cost. For example, the private school in my area features advanced educational technologies and extracircular activities but charges significant tuition fees, making it less accessible to lower-income families.
Discuss and fill the following table giving one example each from your area.
Well managed organisation | Badly managed organisation | |
---|---|---|
Public sector | ||
Private Sector |
Table: Management Quality in Organizations
Well managed organization | Badly managed organization | |
---|---|---|
Public sector | Example: Local public hospital or university | Example: Local municipal corporation |
Private sector | Example: Renowned local manufacturing company | Example: Local retail store chain |
How to Choose Examples:
Public Sector Well Managed: Look for government organizations that have a good reputation for service delivery, transparency, and efficiency.
Indicators: High public satisfaction, awards, recognitions, efficient public service.
Public Sector Badly Managed: Identify government bodies frequently criticized for inefficiency, corruption, or poor service.
Indicators: Frequent complaints, media reports criticizing inefficiency.
Private Sector Well Managed: Consider private companies known for good customer service, growth, and employee satisfaction. Examples might include local thriving businesses or branches of well-known, reputable corporations.
Indicators: Business awards, positive reviews, solid financial performance.
Private Sector Badly Managed: Identify companies known for poor work culture, customer services, or failing business models.
Indicators: News about layoffs, financial troubles, bad reviews.
Feel free within your community to select actual entities operating in these categories, drawing upon local news, personal experiences, and common reputation.
Give a few examples of public sector activities and explain why the government has taken them up.
Public sector activities include the construction of infrastructure like roads, bridges, and railways, the provision of basic health and education services, electricity generation, and the development and management of public transportation systems.
The government undertakes these activities mainly because they require substantial investment, which is beyond the capacity of private entities. Additionally, these services are essential for the welfare of the public and are not profitable to run, which dissuades private sector involvement. By managing these sectors, the government ensures universal access to crucial services, promotes economic development, and enhances the quality of life of its citizens, ensuring that basic needs are met irrespective of the market's profit motives.
Explain how public sector contributes to the economic development of a nation.
The public sector contributes significantly to the economic development of a nation by providing essential services that are fundamental to societal growth, such as education, healthcare, and infrastructure. Governments mobilize revenue through taxation and channel these funds into critical project developments that the private sector may avoid due to large capital requirements and low returns. This includes building roads, schools, hospitals, and transportation systems. By creating a robust infrastructure, the public sector lays the foundation necessary for economic activity, thereby enhancing productivity and facilitating easier trade and commerce. Additionally, public sector employment stabilizes the economy by providing secure jobs and steady income which, in turn, bolsters consumer spending and economic growth. Overall, the public sector's roles are pivotal for fostering a conducive environment for economic progression.
The workers in the unorganised sector need protection on the following issues :
wages, safety and health. Explain with examples.
Wages in the unorganized sector are often inconsistent and below minimum wage standards. For instance, a daily wage laborer may earn less during off-season periods due to reduced work availability, illustrating the need for wage regulation.
Regarding safety, workers in industries like construction face dangers due to inadequate safety measures. For example, workers might operate without helmets or safety harnesses, leading to higher injury rates.
Health concerns are prominent as workers may not have access to basic medical facilities or sick leave. In the textile industry, workers could be exposed to harmful chemicals without protective gear or health checks, resulting in chronic illnesses.
Protection in these areas is crucial to improve their quality of life and ensure fair working conditions.
A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000 worked in the unorganised sector. The total income of the city in this year (1997-1998) was Rs 60,000 million. Out of this Rs 32,000 million was generated in the organised sector. Present this data as a table. What kind of ways should be thought of for generating more employment in the city?
Data Presentation
Description | Value |
---|---|
Total Workers in Ahmedabad | 1,500,000 |
Workers in the Unorganised Sector | 1,100,000 |
Total Income of Ahmedabad (1997-1998) | Rs 60,000 million |
Income from Organised Sector | Rs 32,000 million |
Strategies for Generating More Employment
Skill Development Programs: Establish training centers to enhance the skills of unorganized sector workers, potentially increasing their chances of securing organized sector employment.
Small Business Support: Provide financial and advisory support to small businesses and startups, which can create new jobs and bring more workers into the organised sector.
Public-Private Partnerships (PPPs): Encourage collaborations between the government and private companies to develop infrastructure projects that can lead to substantial employment generation.
Enhance Manufacturing and Service Industries: Support the growth of manufacturing complexes and service industries like IT parks, which can absorb a significant number of workers.
Informal Sector Regulation: Implement regulations that bring benefits such as health insurance and pension to the informal sector, improving job attractiveness and security.
Job Creation Programs: Government initiatives like public works programs can provide temporary employment to the unemployed in both urban and rural areas of the city.
The following table gives the GDP in Rupees (Crores) by the three sectors:
Year | Primary | Secondary | Tertiary |
---|---|---|---|
2000 | 52,000 | 48,500 | 1,33,500 |
2013 | 8,00,500 | 10,74,000 | 38,68,000 |
(i) Calculate the share of the three sectors in GDP for 2000 and 2013.
(ii) Show the data as a bar diagram similar to Graph 2 in the chapter.
(iii) What conclusions can we draw from the bar graph?
Let's start by calculating the total GDP for the years 2000 and 2013, and then determine the share of each sector in the GDP for those respective years.
Step 1: Calculate Total GDP for Each Year
For 2000:
GDP = Primary + Secondary + Tertiary
GDP = 52,000 + 48,500 + 1,33,500
GDP = 2,34,000 crores
For 2013:
GDP = Primary + Secondary + Tertiary
GDP = 8,00,500 + 10,74,000 + 38,68,000
GDP = 50,42,500 crores
Step 2: Calculate Share of Each Sector
For 2000:
Primary: $ \frac{52,000}{2,34,000} \times 100 \approx 22.22% $
Secondary: $ \frac{48,500}{2,34,000} \times 100 \approx 20.73% $
Tertiary: $ \frac{1,33,500}{2,34,000} \times 100 \approx 57.05%$
For 2013:
Primary: $\frac{8,00,500}{50,42,500} \times 100 \approx 15.87% $
Secondary: $\frac{10,74,000}{50,42,500} \times 100 \approx 21.30% $
Tertiary: $\frac{38,68,000}{50,42,500} \times 100 \approx 76.68% $
Step 3: Visual Representation
A bar diagram would show each sector's contribution to GDP for the years 2000 and 2013, depicting how the tertiary sector's dominance has increased significantly over the years.
Step 4: Conclusions from the Bar Graph
From the computed data and the hypothetical corresponding bar graph, we can draw the following conclusions:
Increase in Tertiary Sector's Share: The tertiary sector's share has grown significantly from 57.05% in 2000 to 76.68% in 2013, indicating its increasing importance in the economy.
Decrease in Primary Sector's Share: The share of the primary sector has decreased from 22.22% in 2000 to 15.87% in 2013, showing a relative decline in its contribution to the GDP.
Moderate Increase in Secondary Sector's Share: The secondary sector saw a slight increase from 20.73% in 2000 to 21.30% in 2013, showing a relatively stable contribution compared to the other sectors.
These shifts suggest a movement toward a more service-oriented economy, with lesser reliance on primary sector activities, aligning with global economic development trends where tertiary services become the dominant economic sector as economies evolve.
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Understanding the sectors of the Indian economy is crucial for students studying Social Science in Class 10. This guide provides detailed insights into the primary, secondary, and tertiary sectors, their significance, and the challenges they face.
Introduction
The Indian economy is structured into various sectors, each playing a vital role in the nation’s overall economic development. These sectors include the primary, secondary, and tertiary sectors, each contributing in unique ways to the production of goods and services.
The Three Main Sectors
Primary Sector
The primary sector involves activities that directly utilize natural resources. Key examples include agriculture, dairy farming, fishing, and forestry. This sector forms the base for other economic activities, as it provides raw materials required for the secondary sector.
Image: Various economic activities illustrating the primary, secondary, and tertiary sectors in the Indian economy
Secondary Sector
The secondary sector is associated with industrial activities where raw materials are transformed into finished goods. It includes manufacturing processes such as spinning yarn from cotton, making sugar from sugarcane, and producing bricks from clay.
Tertiary Sector
The tertiary sector is also known as the service sector. It includes activities like transportation, banking, communication, and trade, which support the primary and secondary sectors. This sector also covers essential services such as education, healthcare, and information technology.
Interdependence of Sectors
All three sectors are interdependent. For example, the raw materials supplied by the primary sector are processed in the secondary sector, which in turn relies on the tertiary sector for services like transportation and marketing.
Understanding GDP
Calculation of GDP
Gross Domestic Product (GDP) is a key economic indicator used to measure the total value of all final goods and services produced within a country during a specific period. GDP is calculated by adding the value of final goods and services, ensuring intermediate goods are not double-counted.
Importance of GDP
GDP is crucial for assessing the economic health of a nation. It indicates the size of the economy and provides insights into how different sectors contribute to economic growth.
Historical Changes in Sectors
Trends and Shifts
Historically, most developed countries witnessed a shift from the primary sector to the secondary and then to the tertiary sector. As industrialization increased, the secondary sector grew, followed by a significant rise in the tertiary sector as services became more crucial.
Image: Graph showing the transition of GDP contribution from primary to tertiary sector over the years in India
India’s Economic Transition
In India, the primary sector was initially dominant. Over the years, the secondary sector grew due to increased industrialization. Recently, there has been a significant shift towards the tertiary sector, making it the largest contributor to India’s GDP.
Growing Importance of the Tertiary Sector
The rise of the tertiary sector can be attributed to several factors, including increased demand for services, advancements in information technology, and the expansion of education and healthcare services.
Employment Challenges and Disguised Unemployment
Employment Issues in Primary Sector
Despite its importance, the primary sector often faces challenges like underemployment and disguised unemployment, where more people are employed than necessary, leading to lower productivity.
Solutions for Employment
Creating more employment opportunities requires investment in infrastructure, better irrigation facilities, and promoting industries and services in semi-rural areas. Initiatives like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) aim to provide sustainable employment.
Organized vs. Unorganized Sectors
Definitions and Differences
Organized sectors have regularized employment conditions with benefits like fixed wages, paid leave, and social security. On the other hand, unorganized sectors lack job security and benefits, often leading to exploitation.
Protecting Workers
With a significant portion of the workforce in the unorganized sector, there is a need for protective measures, including fair wage policies, better working conditions, and social security benefits.
Public and Private Sectors
Roles and Responsibilities
The government plays a crucial role in the public sector by providing essential services like healthcare, education, and infrastructure. The private sector, driven by profit motive, complements this by offering goods and services that the public sector might not efficiently manage.
Conclusion
Understanding the divisions and contributions of the primary, secondary, and tertiary sectors is vital for analyzing the Indian economy. The interdependence of these sectors, along with the role of organized and unorganized sectors, highlights the complexity of economic growth and development in India.
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