Sectors of the Indian Economy (Class 10)

Outline

• Main Sectors:
  • Primary Sector (Agricultural Sector)
  • Secondary Sector (Industrial/Manufacturing Sector)
  • Tertiary Sector (Service Sector)
• Basis:
  • Production: How much each sector is producing. Only the value of final goods is included, not intermediate goods.
  • Working Conditions: Division between organized and unorganized sectors.
  • Ownership: Difference between public and private sectors.

Description of the Three Sectors

Primary Sector (Agricultural Sector)

• Provides the base for natural products.
• Example: Growing tomatoes.

Secondary Sector (Industrial/Manufacturing Sector)

• Creating new things from raw material.
• Example: Making ketchup from tomatoes in a factory.

Tertiary Sector (Service Sector)

• Supporting the primary and secondary sectors.
• Example: Transportation services.

GDP and Sectors

• Calculation of GDP from the value of final goods and services.
• The value of intermediate goods is not included in final goods.
• GDP: Sum of the value of final goods and services obtained from all three sectors.
• Historical Shift: Shift from primary to secondary, then to tertiary sectors.

Performance of Sectors in India

• Growth observed in all three sectors, with the tertiary sector growing the fastest.
• Reasons:
  • Provision of basic services by the government.
  • Rising incomes and the emergence of new services.
• Challenges: All service sectors are not growing equally.
• Employment: More people employed in the primary sector, but underemployment is an issue.
  • Example: Establishing pulse mills and tomato ketchup factories.

Employment Generation

• Tasks: Irrigation, loans, transportation facilities, small-scale manufacturing.
• MNREGA (2005): Guaranteed employment of 100 days in rural areas.
• Necessary Steps: Generating jobs in health and education sectors.

Sectors Based on Working Conditions

Organized Sector

• Regulated, paid holidays, fixed tenure, and working hours.

Unorganized Sector

• Lack of paid leaves and benefits, risk of exploitation.

Protection of Workers

• Establishing cooperatives in rural areas.
• Timely delivery of raw materials in urban areas.
• Supporting small workshops.

Sectors Based on Ownership

Public Sector

• Government ownership, service provision motive, non-profit motive.
• Example: Indian Railways, thermal power plants.

Private Sector

• Private ownership, profit motive.
• Necessary: Business will run if there is profit.

Importance of the Public Sector

• Providing things at a reasonable cost.
• Private players cannot provide things at a reasonable cost.
• Government spending is necessary in basic services like health and education.

Conclusion

• Interdependency and specificity in all three sectors.
• Importance of effective employment generation measures and government policies.