JAC Board Class 10 Social Science Notes Economics Chapter 2 Sectors of Indian Economy
→ Economy is best understood when the different economic activities are classified in different sectors.
→ Primary, secondary, tertiary, private, public, organized and unorganized are different sectors of economy in which economic activities are grouped.
→ Primary sector produces products that forms the base of other industries. This sector is also called agriculture and related sector.
→ In secondary sector those activities are covered in which through ways of manufacturing natural products are changed into other forms. This sector is also called as industrial sector.
→ The third sector is the tertiary sector. In this activities that help in the development of the primary and secondary sectors are grouped. This sector is also called service sector.
→ To know the contribution of each sector in an economy the value of final goods and services produced by each sector in a particular year is considered.
→ The total production in three sectors in a year is what is known as Gross Domestic Product (GDP) of a country. The value of GDP indicates the size of the economy.
→ In India, GDP is calculated by Central Government ministry.
→ Historically, it has been observed that countries, which are developed today had strong primary sector in the initial stage of development and eventually the manufacturing and service sectors developed.
→ In India, more people are engaged in agricultural sector than secondary and tertiary sector, however the contribution of secondary and tertiary sector in GDP is more than the primary sector. This is mainly because more people in agriculture sector are underemployed. Underemployed is also known as disguised unemployment because as those underemployed may work but not to their full capacity and earn very less. Besides primary, secondary and tertiary sector, economic activities can be grouped under organized and unorganized sectors. Organized sector covers those activities, enterprises or places of work where the terms of employment are regular and people have assured work. They are registered by the government and have to follow its rules and regulations.
→ Unorganized sector covers those activities, which generally are outside the control of government. Jobs here are often irregular and low paid. Employment is not secure in this sector.
→ Mostly people from backward communities, scheduled tribes and castes work in unorganized sector.
→ Another way of classification of economic activities is on the basis of ownership such as private and public sectors. In the public sector, the government owns most of the assets and the services. In the private sector, the ownership of assets and delivery of services is in the hands of private individuals or companies. Such as railways are under public sector and Reliance Industries is a private sector entity.
→ There are many activities, which are government’s responsibility and government needs to spend on them for human development.