Haryana State Board HBSE 10th Class Social Science Notes Economics Chapter 2 Sectors of Indian Economy Notes
Haryana Board 10th Class Social Science Notes Economics Chapter 2 Sectors of Indian Economy
- The activities which are undertaken with the objective to earn money are called Economic activities.
- Some of these activities produce goods and others produce services.
- Activities are classified in various groups which are known as sectors.
- Major sectors of economic activities are-
1. Primary, Secondary and Tertiary Sector
2. Organised and Unorganised Sector
3. Public and Private Sector.
Chapter 2 Economics Class 10 Notes HBSE
→ Primary, Secondary and Tertiary Sectors
- When we produce some goods by exploiting natural resources, it is called an activity of the primary sector. For example- cotton cultivation, dairy products, fishing, forestry, mining, etc.
- Primary sector is also called agriculture and related sector.
- Secondary sector covers all activities, in which, natural products are changed into other forms, through ways of manufacturing, that we associate with industrial activity, e.g. getting cotton fibre from the plant, spin yarn and weave cloth, making sugar or gur from sugar cane.
- It is also called industrial sector.
- Tertiary sector is different from the above two. These are activities that help in the development of primary and secondary sector, e.g. transport, storage, banking, communication, business etc.
- Tertiary sector is also called service sector. It includes some essential services that may not directly help in the production of goods. For example, teachers, lawyers, doctors, washermen, barbers etc.
- Computer and information technology such as software, industry, internet cafe, ATM booths call centres.
Class 10th Economics Chapter 2 Notes HBSE
→ Comparing the Three Sectors
- The various production activities in primary, secondary and tertiary sectors, produce a large number of goods and services and employ a large number of people.
- Goods and services are of two types –
(i) Final Goods and Services
(ii) Intermediate Goods and Services. - Final Goods and services are directly consumed by the consumers and are not meant for futher production or processing.
- Intermediate Goods and services are used for further production or processing.
- The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year.
- Gross Domestic Product (GDP) of a country is the sum of the value of all final goods and services produced in all the three sectors in a particular year.
- It shows the total production in a country.
- The task of estimating the GDP in India is undertaken by the Central Government Ministry.
Class 10 Economics Chapter 2 Notes HBSE
→ Historical Change in Sectors
- Primary sector was most important sector in initial stages of development.
- With new methods of farming surplus food was produced. People started working in industries and secondary sector gained importance.
- This led to emergence of different services like transport, banking, health, education. At present tertiary sector is most important in terms of production and employment. Primary, Secondary and Tertiary Sectors in India
- Total GDP in India was above Rs 500,000 crore in 1973-74 with dominance of primary sector. But in 2013-14, after a gap of 40 years, the GDP is above Rs 5,500,000 crore with tertiary sector as dominant sector in India.
Class 10 Economic Chapter 2 Notes HBSE
→ Rising Importance of the Tertiary Sector
- Tertiary sector has replaced the primary sector as largest producing sector. The reasons for this are-
- Demands for basic services like hospitals, educational institutions, postal services, police station, banks, insurance companies, administrative offices, defence, etc have increased.
- Greater development in Primary and Secondary Sectors has induced demand for service sector growth like transport, trade, storage, etc.
- With the rise in income, certain services are demanded like tourism, shopping, private hospitals, professional training, etc. which enhanced services sector.
- Due to globalisation, certain new services have entered Indian market like information technology and communication technology which have become important and essential.
- However, not all of the service sector is growing equally.
- Services that employ highly skilled and educated people are growing. But large part of service sector that employs small shopkeepers, repair persons, transport person is not growing efficiently.
→ Where are most of the People employed?
- The secondary and tertiary sectors have not created enough jobs. Therefore people have to depend upon agriculture.
- More than half of working population are engaged in primary activities, mainly agriculture.
- Therefore, more people work than actually needed so everyone works less than their capacity and also earns less.
- This is called underemployment or disguised unemployment.
- Under employment also occurs in urban areas. There are thousands of casual workers like plumbers, painters, repairmen, who seek for daily employment in the towns and cities.
Sectors Of Indian Economy Class 10 Notes HBSE
→ How to Create more Employment?
- It is essential to create more employment opportunities and reduce unemployment in agricultural sector. This can be done by following ways-
(i) Creating employment in construction of dams and canals, making or betterment of rural roads, developing storage facilities, etc.
(ii) Banks can provide loan to small farmers for buying seeds, fertilisers, equipments, pumpsets, constructing wells for irrigation. This enables them to grow two or more crops thereby increasing their earnings.
(iii) Setting up small industries in semi-rural areas like rice mill, dal mill, honey collection centres, cold storage, food processing industries, etc.
(iv) Creating jobs in health and education sector by opening more dispensaries, schools in rural areas alongwith encouraging tourism. - According to NITI Aayog (National Institution For Transforming India) education sector has potential of generating 20 lakh jobs and tourism sector has potential of generating more than 35 lakh jobs.
- The central government in India made a law implementing the Right to Work in about 625 districts of India. It is called Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA 2005).
- Under MGNREGA 2005, all those who are able to, and are in need of, work in rural areas are guaranted 100 days of employment in a year by the government.
- If the government fails in its duty to provide employment, it will give unemployment allowance to the people.
- The types of work that would in future help to increase the production from land will be given preference under the act.
→ Division of Sectors as Organised and Unorganised
- On the basis of the working conditions or how people are employed, economic activities are divided into organised and unorganised.
- Organised sector covers enterprises or places of work where workers are given regular employment.
- Workers in the organised sector enjoy security of employment. They are expected to work only a fixed number of hours. If they work more, they have to be paid overtime by the employee.
- Unorganised sector is characterised by small and scattered units which are unregistered and do not follow governmental rules and regulations.
- In this sector workers get lower wages and are not given facilities like paid holidays or paid leave due to sickness, etc. Working conditions are poor and there is no job security so employment is irregular.
→ How to Protect Workers in the Unorganised Sector
- There are many groups of vulnerable people who need protection in the unorganised sector. People are often exploited, paid low, have irregular jobs and face social discrimination.
- They can be protected in following ways:
(i) Nearly 80 per cent of rural households in India are in small and marginal farmer category. They can be supported through adequate facility for timely delivery of seeds, agricultural inputs, credit, storage and marketing outlets. - (ii) In urban areas, the small-scale industries can be protected by government’s support for procuring raw materials and marketing of output. Sectors in terms of Ownership:
→ Public and Private Sectors
- On the basis of ownership there are two sectors of the economy-public sector and private sector.
- In the public sector, government owns most of the assets and provides all the services, therefore it is also called state sector or government sector.
- Indian Railways, Bharat Heavy electricals Limited, etc.
- In the private sector, ownership of assets and delivery of services is in the hands of individuals or private companies, e.g. Reliance Industries Limited (RIL), TISCO, etc. Motive of private sector is to earn profits.
- There are a large number of activities which are essential for the people, and the government must spend on these. Providing health and education facilities for all is one example.
- The public sector has welfare motive so it provides essential goods and services at cheap prices to the poor people while the private sector has profit in mind.
→ Important Terms
1. Sector-A group of particular economic activities is called a sector, c.g. Primary, Secondary, Tertiary sectors.
2. Primary Sector Activities-When we produce goods by exploiting natural resources, it is called activities of the primary sector. For example-agriculture, dairy, fishing, forestry etc.
3. Secondary Sector Activities-The secondary sector covers all activities, in which, natural products are changed into other forms, through ways of manufacturing. For example- to make cloth from cotton, sugar from sugar cane etc.
4. Manufacturing-Manufacturing, literally means, to make by hand. It involves a full array of production, from handicrafts to moulding iron and steel, and stamping out plastic toys, to assembling delicate computer components or space vehicles.
5. Tertiary Sector Activities-It includes all service-providing trades. For example-transportation, communication, trade, education, health and management etc.
6. Information Technology-It is a technique of sending, getting and collecting information, in which computer, database and modem are used. In this, information is edited rapidly, errorlessly and efficiently.
7. Software Industries-Industries that provide, develop and maintain computer operating systems.
8. Call Centres-Offices that provide customer services functions.
9. Basic Services-Services required by all citizens like elementary education, healthcare, water supply and sanitation, etc.
10. Occupation-Activity performed by human beings for the purpose of supporting themselves by earning income.
11. Gross Domestic Product (G.D.P.)-The total value of final goods and services, produced in a particular year, within a country. It includes the contribution of all sectors (primary, secondary and tertiary) of the economy.
12. Employment-It is a situation, where all the able-bodied persons, who are willing to work, are engaged in some productive activity, to earn income.
13. Transport-The action of carrying persons and goods from one place to another is called transport.
14. Trade-The voluntary exchange of goods and services is called Trade.
15. Unemployment-It is a situation where able-bodied persons are willing to work at prevalent wages, but are not able to get work.
16. Underemployment-It is a situation, where people work at a job, which is below their capacity, skill and education.
17. Disguised Unemployment-It is a type of hidden unemployment, where people seem to be working, but they do not contribute to actual
production.
18. NITI Aayog-National Institution for Transforming India, NITI Aayog was formed on 1st January 2015. It aims to foster India’s economic
development to transform India.
19. Right to Work-Right to work states that people have a right to work, they have free choice of employment in just and favourable conditions and also have protection against unemployment.
20. Enterprise-A business activity or an economic endeavour.
21. MNREGA-Mahatma Gandhi National Rural Employment Guarantee Act, 2005. Its main aim is to provide 100 days assured employment to all needy and unemployed people. If they are unable to provide employment, then they would provide unemployment allowances.
22. Organised Sector-Organised sector covers those enterprises where the terms of employment are regular and they have assured work.
23. Unorganised Sector-Small and scattered units, which are out of control of the government, come under the unorganised sector.
24. Public Sector-In this, the government owns most of the assets of the company.
25. Private Sector-In this, the ownership of assets is in hands of private individuals or companies.