notes of sector of Indian economy it is very urgent plss
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An economy is best understood when you study its components or sectors. So, in CBSE Notes Class 10 Economics Chapter 2 – Sectors of the Indian Economy, you will learn 3 types of classifications of economy i.e primary/secondary/tertiary, organised/unorganised and public/private. To understand this chapter in a better way, try to relate the topics to your daily life. In these notes, you will also get familiarised with a few fundamental concepts such as Gross Domestic Product, Employment, etc.
Go through these notes and get an overview of all the topics taught in the chapter. You can also download CBSE Notes Class 10 Economics Chapter 2 – Sectors of the Indian Economy for revising during exams.
Download CBSE Notes Class 10 Economics Chapter 2 – Sectors of the Indian Economy PDF
Sectors of Economic Activities
Sector defines a large segment of the economy in which businesses share the same or a related product or service.
When we produce a good by extraction and collection of natural resources, it is known as the primary sector. Eg: Farming, forestry, hunting, fishing and mining.
The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing. It is the next step after primary. Some manufacturing processes are required here. It is also called the industrial sector. For example, using cotton fibre from the plant, we spin yarn and weave cloth. Using sugarcane as raw material, we make sugar or gur.
Tertiary sector includes activities that help in the development of the primary and secondary sectors. These activities, by themselves, do not produce a good but they are an aid or support for the production process. It is also called the service sector. Example: Teachers, doctors, washermen, barbers, cobblers, lawyers, call centres, software companies, etc.
Comparing the 3 Sectors
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. The sum of production in the three sectors gives Gross Domestic Product (GDP) of a country. GDP is the value of all final goods and services produced within a country during a particular year. It shows how big the economy is. In India, the task of measuring GDP is undertaken by a central government ministry.
The graph below shows the production of goods and services in the three sectors.
Graph showing GDP by Primary Secondary and Tertiary Sector
In the year 2013-14, the tertiary sector emerged as the largest producing sector in India, replacing the primary sector. The tertiary sector has become important in India because of the following reasons:
Services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, etc. are considered as basic services and are necessary for all people.
The development of agriculture and industry leads to the development of services such as transport, trade, storage, etc.
With the rise in the income of people, they start demanding more services like eating out, tourism, shopping, private hospitals, private schools, professional training, etc.
Over the past decade, certain new services based on information and communication technology have become important and essential.
Where are Most People Employed
Primary Sector Secondary Sector Tertiary Sector
More than half of the workers in India are working in the primary sector, mainly in agriculture. These sectors employ less than half the people as compared to the primary sector.
It contributes to only a quarter of the GDP. These sectors produce four-fifths of the product.
How to Create More Employment
Employment can be given to people by identifying, promoting and locating industries and services in semi-rural areas. Every state or region has the potential for increasing the income and employment for people in that area. It can be done by tourism, or regional craft industry, or new services like IT. A study conducted by the Planning Commission (known as NITI Aayog) estimates that nearly 20 lakh jobs can be created in the education sector alone.
The central government in India made a law implementing the Right to Work in about 625 districts of India, which is called Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005. Under MGNREGA 2005, all those who are able to, and are in need of work in rural areas are guaranteed 100 days of employment in a year by the government. If the government fails in its duty to provide employment, it will give unemployment allowances to the people.