Beruflich Dokumente
Kultur Dokumente
CLASS X
ECONOMICS NOTES
ACADEMIC YEAR 2016-2016
CHAPTER-2 Sectors of Indian Economy
1. DEFINATION:
i. Final Goods and services: Goods and services that reach the
consumer or are consumed directly by the consumer. The value of
only final goods and services is added in the accounting of
National income.
ii. Intermediate goods and services: Goods and services which are
used in the production process of any other commodity. The value
of the intermediate goods and services is already included in the
value of the Final goods and services.
iii. GDP- Gross Domestic Product: The value of all final goods and
services produced within an economy during a particular year.
It is also the sum total of the income from all the three sectors.
2. Division of sectors on the basis of Economic activities or Occupation:
i. Primary sector: or the Agriculture sector includes all the activities which produce natural
goods. Eg. Agriculture, fishing, poultry farming etc.
ii. Secondary sector: Industrial sector- includes all the activities that produce
manufactured or man-made goods. E.g. Textile, machines, cars etc.
iii. Tertiary sector: Service Sector- includes all the services e.g. insurance, banking,
transport, communication etc.
Page 1 of 7
Economic activities: All such activities which undertaken by people with the object of
earning money is called economic activities.
Non-economic activities: All such activities which are undertaken to satisfy social,
psychological and emotional needs and does not provide money in return is called noneconomic activities.
Organized Sector: Here people have assured work and terms of employment are regular.
Rules and regulations given in various laws are followed as they are registered by the
government.
Unorganized Sector: It consists of small and scattered units which are largely outside the
control of the government. It is characterized by low-paid and insecure jobs. Rules and
regulations are not followed.
3. Shift in the importance of the sectors: In modern economies the tertiary sector has taken
the place of the most important sector because it contributes the maximum share in
income and employment of these economies
There has been a similar shift in India in case of tertiary sectors share in income. But a
similar shift has not happened in terms of employment i.e. in India the primary sector
continues to dominate the employment being the largest employer till date.
4. Types of Unemployment:
i.
ii.
iii.
Open unemployment: when a person is clearly not employed and visibly looking
for work then it is called as Open unemployment.
Disguised or Underemployment: when the number of workers employed are
more than required or the workers are not working to their full potential it is
called as disguised or underemployment. The labour effect in this case
distributed and the potential of workers is wasted.
Seasonal or Cyclical unemployment: The employment which is available in only
some parts of the year it is Seasonal unemployment. It usually seen in the
agriculture sector.
iii. Cheap affordable credit: for cultivation the farmers need credit at lower interest rate so
that they do not have to depend on the moneylenders who exploit them, charging high rate
of interest.
iv. Identify, promote and locate industries in the semi-rural areas. Like setting up of daal
mill close to the area of cultivation would employ surplus labour in that area and will also
will also save the time and cost of transport of raw material.
v. Expansion in education and health sector in rural areas will have both long and short
term benefits. In short term, the need for teachers, principal, doctors, nurses, cleaners,
compounder etc. will create immediate employment opportunities. Whereas in long term,
the more healthy and educated population will have more productive capacity.
vi. Promotion of Tourism: tourism has lot of potential in creating employment and
generating income.
vi. Special employment programs by the Government like National Rural Employment
Guarantee Act ( NREGA) 2005.
6. Classification of sectors on the basis of employment conditions:
i. Organised
ii. Unorganised
7. Difference between the Organised and the Unorganised sector:
Organized sector
1. This sector includes all the
Companies which are registered with
government under some act.
2. These companies have to follow rules
and regulations for protection of
workers.
3. Workers in this sector enjoy special
benefits like paid leaves, payment for
overtime,
Unorganized sctor
The companies which are not registered
with government are included in this sector.
These companies do not follow rules and
regulations for protection of workers.
Page 3 of 7
Page 4 of 7
10. Explain how public sector contributes to the economic development of a nation.
Ans- The public sector contributes to the economic development of a nation in the
following waysa. The public sector can provide services at a reasonable rate. While providing
this the government is not guided by any profit motive but the welfare of the
people. Eg construction of railways, roads, bridges, harbours, generating
electricity, providing irrigation through dams etc. Eg selling electricity at the
cost of generation may increase the cost of production of various industries and
ultimately may result in the closure of industries. The govt. must step in to
support the supply of electricity at affordable rates so that THE ECONOMIC
DEVELOPMENT IS NOT HAMPERED. Similarly the govt. has to promote
fair price shops so that people can avail the basic necessities of life
b. The public Sector controls and develops the key and basic industries of the
country
c. Public sector provides employment to achieve Equal distribution of Income.
d. The government has to support various activities of the service sector for
uniform growth and development in all areas. The primary responsibility of
the government is to provide some basic facilities like supply of safe drinking
water, housing facilities, health, schools etc to the needy and the most ignored
regions for development. Hence human development promotes economic
development
e. Public sector also provides for major employment.
Page 5 of 7
Page 7 of 7