Sectors of the Indian Economy
LET’S WORK THESE OUT (Page No. 21)
1. Complete the above table to show how sectors are dependent on each other.
Answer:
TABLE 2.1 EXAMPLES OF ECONOMIC ACTIVITIES
EXAMPLE | WHAT DOES THIS SHOW? |
Imagine what would happen if farmers refuse to sell sugarcane to a particular sugar mill. The mill will have to shut down. | This is an example of the secondary or industrial sector being dependent on the primary sector. |
Imagine what would happen to cotton cultivation if companies decide not to buy from the Indian market and import all cotton they need from other countries. Indian cotton cultivation will become less profitable and the farmers may even go bankrupt if they cannot quickly switch to other crops. Cotton prices will fall. | This shows that the primary sector (agriculture) depends on the secondary sector for its development and income. |
Farmers buy many goods such as tractors, pumpsets, electricity, pesticides, and fertilisers. Imagine what would happen if the price of fertilisers or pumpsets goes up. The cost of cultivation of the farmers will rise and their profits will be reduced. | This shows that the primary sector depends on the secondary sector for inputs like machinery and fertilisers. |
People working in industrial and service sectors need food. Imagine what would happen if there is a strike by transporters and lorries refuse to take vegetables, milk, etc. from rural areas. Food will become scarce in urban areas whereas farmers will be unable to sell their products. | This shows that the tertiary (service) sector is essential for linking the primary and secondary sectors. All three sectors are interdependent. |
2. Explain the difference between primary, secondary and tertiary sectors using examples other than those mentioned in the text.
Answer:
Sector | Nature of Activity | Examples (other than in the text) | Explanation |
---|---|---|---|
Primary Sector | Uses natural resources directly to produce goods | Mining of coal, collecting honey, extraction of crude oil | It includes activities that depend mainly on nature for their output. It forms the base of all other products. |
Secondary Sector | Converts natural products into new and useful goods | Making furniture from wood, producing steel from iron ore, making paper from bamboo | This sector involves manufacturing or processing raw materials into finished goods. |
Tertiary Sector | Provides services to support production and trade | Transporting goods by trucks, providing internet services, banking, insurance | This sector does not produce goods but helps the primary and secondary sectors through services. |
3. Classify the following list of occupations under primary, secondary and tertiary sectors:
Answer:
Primary Sector | Secondary Sector | Tertiary Sector |
---|---|---|
Flower cultivator | Tailor | Priest |
Fishermen | Basket weaver | Courier |
Gardener | Workers in match factory | Moneylender |
Bee-keeper | Potter | Astronaut |
Milk vendor | — | Call centre employee |
4. Students in a school are often classified into primary and secondary or junior and nsenior. What is the criterion that is used? Do you think this is a useful classification? Discuss.
Answer:
Criterion used:
The classification of students into primary and secondary or junior and senior is based on their age group and level of learning or education.
Usefulness of the classification:
Yes, it is a useful classification because it helps the school to:
- Organise teaching according to the students’ understanding and mental level.
- Prepare suitable syllabuses and learning materials for different age groups.
- Manage school activities and resources effectively.
Conclusion:
Just like the classification of economic activities into sectors, dividing students helps in proper planning, better management, and improved results in education.
LET’S WORK THESE OUT (Page No. 23)
1. What does the history of developed countries indicate about the shifts that have taken place between sectors?
Answer: The history of developed countries shows that initially the primary sector (agriculture) was the most important source of production and employment.
As development took place, the secondary or industrial sector became dominant due to the growth of manufacturing.
Later, with further development, the tertiary or service sector became the largest contributor to income and employment.
Thus, the pattern of growth moved from primary → secondary → tertiary sector.
2. Correct and arrange the important aspects for calculating GDP from this Jumble.
To count goods and services we add the numbers that are produced. We count all those that were produced in the last five years. Since we shouldn’t leave out anything we add up all these goods and services.
Answer:
Correct arrangement:
To calculate GDP, we count the value of all final goods and services produced within a country during a particular year.
We do not add up goods produced in the last five years or intermediate goods, because that would lead to double counting.
Correct concept:
→ GDP = Total value of all final goods and services produced in a country in one year.
3. Discuss with your teacher how you could calculate the total value of a good or service by using the method of value added at each stage.
Answer: The value added method means adding the value that each producer adds to a good at every stage of production.
For example,
- A farmer grows wheat worth ₹10.
- A miller makes flour from it and sells it for ₹15.
- A baker uses the flour to make bread worth ₹25.
Here, the total value added is:
₹10 (farmer) + ₹5 (miller) + ₹10 (baker) = ₹25 (final value of bread).
Thus, the sum of value added at each stage gives the total value of the final product, which helps in accurate calculation of GDP.
LET’S WORK THESE OUT (Page No. 24)
1. Which was the largest producing sector in 1973-74?
Answer: The Primary sector (Agriculture and related activities) was the largest producing sector in 1973-74.
2. Which is the largest producing sector in 2013-14?
Answer: The Tertiary sector (Service sector) became the largest producing sector in 2013-14.
3. Can you say which sector has grown the most over forty years?
Answer: The Tertiary (Service) sector grew the most between 1973-74 and 2013-14.
4. What was the GDP of India in 2013-14?
Answer: The GDP of India in 2013-14 was about ₹ 55 lakh crore.
LET’S WORK THESE OUT (Page No. 24)
1. Complete the table using the data given in Graphs 2 and 3 and answer the question that follows. Ignore if data are not available for some years.
What are the changes that you observe in the primary sector over a span of forty years?
Answer:
1973-74 | 1977-78 | 2013-14 | 2017-18 | |
Share in GDP | About 45% | About 43% | About 14% | About 15% |
Share in employment | About 74% | About 71% | About 49% | About 44% |
2. Choose the correct answer:
Underemployment occurs when people
(i) do not want to work
(ii) are working in a lazy manner
(iii) are working less than what they are capable of doing
(iv) are not paid for their work
Answer: (iii) are working less than what they are capable of doing.
3. Compare and contrast the changes in India with the pattern that was observed for developed countries. What kind of changes between sectors were desired but did not happen in India?
Answer: In developed countries, the shift from the primary to secondary sector and then to the tertiary sector happened smoothly.
But in India, though the tertiary sector grew the most, the share of employment in agriculture (primary sector) is still very high.
The desired change was that more people should have moved from agriculture to industry and services, but this shift did not happen properly because enough jobs were not created in the secondary and tertiary sectors.
4. Why should we be worried about underemployment?
Answer: We should be worried about underemployment because:
- Many people are working, but not using their full potential.
- Their income is very low, and the country’s total production also remains low.
- It shows that resources like labour are not being used properly.
If people get better employment opportunities, both their income and the country’s development will improve.
LET’S WORK THESE OUT (Page No. 29)
1. Why do you think MGNREGA 2005 is referred to as ‘ Right to work’ ?
Answer: The MGNREGA 2005 is called the ‘Right to Work’ because it guarantees 100 days of employment in a year to all rural people who are willing to work.
If the government fails to provide employment, it must give unemployment allowance to the people.
This means people have a legal right to get work under this Act.
2. Imagine that you are the village head. In that capacity suggest some activities that you think should be taken up under this Act that would also increase the income of people? Discuss.
Answer: As a village head, I would suggest the following activities:
- Building check dams and canals to improve irrigation.
- Planting trees and creating forests on unused land.
- Constructing rural roads and storage facilities for crops.
- Building ponds and wells for water conservation.
These activities would create jobs for villagers and also help increase farm production and income.
3. How would income and employment increase if farmers were provided with irrigation and marketing facilities?
Answer: If farmers get irrigation facilities, they can grow more than one crop in a year, increasing production and income.
With marketing facilities, they can sell their products easily and at better prices.
This will create more jobs in farming, transport, and trade, and help reduce underemployment.
4. In what ways can employment be increased in urban areas?
Answer: Employment in urban areas can be increased by:
- Encouraging small-scale industries and services.
- Supporting self-employment through bank loans and training.
- Improving infrastructure like transport, housing, and markets.
- Promoting new businesses in areas like IT, education, and health.
LET’S WORK THESE OUT (Page No. 31)
1. Look at the following examples. Which of these are unorganised sector activities?
(i) A teacher taking classes in a school
(ii) A headload worker carrying a bag of cement on his back in a market
(iii) A farmer irrigating her field
(iv) A doctor in a hospital treating a patient
(v) A daily wage labourer working under a contractor
(vi) A factory worker going to work in a big factory
(vii) A handloom weaver working in her house
Answer: Unorganised sector activities are those where there is no regular job, no fixed working hours, and no job security.
Unorganised sector activities:
(ii) A headload worker carrying a bag of cement on his back in a market
(iii) A farmer irrigating her field
(v) A daily wage labourer working under a contractor
(vii) A handloom weaver working in her house
2. Talk to someone who has a regular job in the organised sector and another who works in the unorganised sector. Compare and contrast their working conditions in all aspects.
Answer:
Aspect | Organised Sector Worker | Unorganised Sector Worker |
---|---|---|
Job security | Job is secure and regular | Job is not secure; can be removed anytime |
Working hours | Fixed working hours | Long and irregular working hours |
Wages | Regular salary, overtime pay, and benefits | Low and irregular wages |
Leave and holidays | Paid leave and holidays | No paid leave or holidays |
Health and safety | Safe working conditions, medical benefits | Unsafe working conditions, no medical help |
Retirement benefits | Provident fund, pension, gratuity | No retirement benefits |
3. How would you distinguish between organised and unorganised sectors? Explain in your own words.
Answer:
Basis of Difference | Organised Sector | Unorganised Sector |
---|---|---|
1. Registration | Registered by the government and follows its rules and laws. | Not registered by the government; rules are not followed properly. |
2. Job Security | Workers have secure and regular jobs. | Jobs are not secure; workers can be removed anytime. |
3. Working Hours | Fixed working hours; overtime payment if extra work is done. | Working hours are long and irregular; no overtime payment. |
4. Wages | Regular and higher wages; paid on time every month. | Low and irregular wages; sometimes paid late. |
5. Benefits | Workers get benefits like paid leave, provident fund, pension, medical help, and holidays. | No benefits such as leave, pension, or medical help. |
6. Examples | Government offices, big factories, banks, schools. | Farmers, small shopkeepers, street vendors, daily wage labourers. |
4. The table below shows the estimated number of workers in India in the organised and unorganised sectors. Read the table carefully. Fill in the missing data and answer the questions that follow.
Answer:
Sector | Organised | Unorganised | Total |
Primary | 1 | 231 | 232 |
Secondary | 41 | 74 | 115 |
Tertiary | 40 | 88 | 128 |
Total | 82 | 393 | 475 |
Total in Percentage | 17% | 83% | 100% |
1. What is the percentage of people in the unorganised sector in agriculture?
Answer: Nearly 99% of the workers in the primary (agriculture) sector are in the unorganised sector.
2. Do you agree that agriculture is an unorganised sector activity? Why?
Answer: Yes, agriculture is mostly an unorganised sector activity because:
- Most farmers are self-employed or work on small farms.
- There are no fixed wages, working hours, or job security.
- Government rules and regulations are not followed properly.
3. If we look at the country as a whole, we find that ———% of the workers in India are in the unorganised sector. Organised sector employment is available to only about ———% of the workers in India.
Answer: 83%, 17%
EXERCISES
1. 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]
Answer:
- has not
- tertiary
- organised
- large
- natural, manufacture
- interdependent.
2. 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
Answer: (iii) ownership of enterprises
(b) Production of a commodity, mostly through the natural process, is an activity in _________ sector.
(i) primary
(ii) secondary
(iii) tertiary
(iv) information technology
Answer: (i) primary
(c) 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
Answer: (ii) all final goods and services
(d) 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
Answer: (iv) 60 to 70
3. Match the following:
Answer:
Problems faced by farming sector | Some possible measures |
1. Unirrigated land | (d) Construction of canals by the government |
2. Low prices for crops | (c) Procurement of food grains by government |
3. Debt burden | (e) Banks to provide credit with low interest |
4. No job in the off season | (a) Setting up agro-based mills |
5. Compelled to sell their grains to the local traders soon after harvest | (b) Cooperative marketing societies |
4. Find the odd one out and say why.
(i) Tourist guide, dhobi, tailor, potter
Answer: Potter – because the others (tourist guide, dhobi, tailor) provide services, while potter produces goods.
(ii) Teacher, doctor, vegetable vendor, lawyer
Answer: Vegetable vendor – because the others (teacher, doctor, lawyer) are professional service providers.
(iii) Postman, cobbler, soldier, police constable
Answer: Cobbler – because the others (postman, soldier, police constable) work in the public sector.
(iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio
Answer: Jet Airways – because it is a private company; the others (MTNL, Indian Railways, Air India, All India Radio) belong to the public sector.
5. A research scholar looked at the working people in the city of Surat and found the following.
Complete the table. What is the percentage of workers in the unorganised sector in this city?
Answer:
Place of work | Nature of employment | Percentage of working people |
---|---|---|
In offices and factories registered with the government | Organised | 15% |
Own shops, offices, clinics in marketplaces with formal license | Organised | 15% |
People working on the street, construction workers, domestic workers | Unorganised | 20% |
Working in small workshops usually not registered with the government | Unorganised | 50% |
Total | 100% |
The percentage of workers in the unorganised sector in this city (Surat) is 70%.
6. Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.
Answer: Yes, this classification is very useful.
It helps us to understand which part of the economy is growing and which is lagging behind.
It also helps the government to plan for development by knowing how much each sector contributes to GDP and employment.
7. 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.
Answer: We should focus on employment and GDP because they show how much each sector contributes to the economy and provides jobs to people.
Other issues like working conditions, income inequality, job security, and environmental effects should also be examined for balanced development.
8. 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.
Answer: Examples of work: Farming, teaching, driving, tailoring, shopkeeping, banking, construction, nursing, etc.
These can be classified as:
- Primary sector: Farming, fishing, mining.
- Secondary sector: Manufacturing, construction.
- Tertiary sector: Teaching, banking, transportation, healthcare.
This classification is based on the nature of work.
9. How is the tertiary sector different from other sectors? Illustrate with a few examples.
Answer: The tertiary sector does not produce goods but provides services that support the production process.
For example – transport, banking, education, and communication.
While the primary sector produces raw materials and the secondary sector manufactures goods, the tertiary sector provides services to both.
10. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Answer: Disguised unemployment means more people are working than actually needed.
- Rural area: A small farm where five people work, but only three are needed.
- Urban area: A small shop where many helpers work but only a few are actually required.
11. Distinguish between open unemployment and disguised unemployment.
Answer:
Basis | Open Unemployment | Disguised Unemployment |
---|---|---|
Meaning | People are willing to work but do not get any job. | More people are working than required; extra people do not add to production. |
Visibility | Clearly visible. | Hidden form of unemployment. |
Example | A graduate looking for a job but not finding one. | Extra family members working on a small farm. |
12. “Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.
Answer: No, this statement is not correct.
The tertiary sector has become the largest contributor to India’s GDP.
It includes essential services like education, health, banking, transport, communication, and IT, which help all other sectors to grow.
13. Service sector in India employs two different kinds of people. Who are these?
Answer:
- Highly skilled and educated people – like doctors, engineers, IT professionals.
- Unskilled or semi-skilled workers – like small shopkeepers, drivers, repair workers, and vendors.
14. Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
Answer: Yes, workers in the unorganised sector are often exploited because:
- They have low wages and no job security.
- There are no fixed working hours or benefits like leave or medical help.
- Rules and laws are not followed properly.
15. How are the activities in the economy classified on the basis of employment conditions?
Answer: On the basis of employment conditions, activities are classified into:
- Organised sector – Regular jobs, fixed working hours, job security.
- Unorganised sector – Irregular jobs, low wages, no job security.
16. Compare the employment conditions prevailing in the organised and unorganised sectors.
Answer:
Aspect | Organised Sector | Unorganised Sector |
---|---|---|
Job security | Secure and regular | Not secure |
Wages | Fixed and regular | Low and irregular |
Benefits | Paid leave, PF, pension | No benefits |
Working hours | Fixed | Long and irregular |
17. Explain the objective of implementing the NREGA 2005.
Answer: The main objective of MGNREGA 2005 is to provide “Right to Work” to rural people.
It guarantees 100 days of employment in a year to those who are willing to work.
If the government fails to provide work, unemployment allowance must be given.
18. Using examples from your area compare and contrast that activities and functions of private and public sectors.
Answer:
Public Sector | Private Sector |
---|---|
Government schools, hospitals, transport. | Private schools, shops, factories. |
Aim – Public welfare. | Aim – Profit making. |
Run by government funds. | Run by individuals or companies. |
19. Discuss and fill the following table giving one example each from your area.
Answer:
Sector | Well Managed Organisation (Example) | Badly Managed Organisation (Example) |
---|---|---|
Public Sector | Indian Railways – It provides safe and affordable transport to millions of people efficiently. | Government Hospital – Sometimes poorly managed with lack of cleanliness and long waiting time. |
Private Sector | Tata Consultancy Services (TCS) – A well-managed IT company known for good service and employee care. | A Small Private Factory – Often badly managed with low wages and poor working conditions. |
20. Give a few examples of public sector activities and explain why the government has taken them up.
Answer: Examples: Railways, Defence, Post Office, Electricity, Water supply.
The government runs these because:
- They need large investment.
- Private companies may not provide them at a fair cost.
- They are important for the welfare of all citizens.
21. Explain how public sector contributes to the economic development of a nation.
Answer: The public sector helps in:
- Providing infrastructure (roads, railways, power).
- Offering basic services (education, health).
- Supporting industries and creating employment opportunities.
- Reducing income inequality through welfare schemes.
22. The workers in the unorganised sector need protection on the following issues : wages, safety and health. Explain with examples.
Answer: Workers need protection because:
- They get very low wages (e.g., daily wage labourers).
- They work in unsafe conditions (e.g., construction workers).
- They have no health benefits or job security.
The government should make laws and provide support for their welfare.
23. 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?
Answer:
Sector | Workers (in lakhs) | Income (Rs million) |
---|---|---|
Organised | 4 | 32,000 |
Unorganised | 11 | 28,000 |
Total | 15 | 60,000 |
Ways to generate more employment:
- Promote small-scale industries.
- Encourage self-employment and skill training.
- Develop urban infrastructure and services.
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