LASS : X SUBJECT : ECONOMICS TOPIC :SECTOR OF INDIAN ECONOMY MONTH :
JULY, 2012 TEACHER S NAME: MRS. ASHIMA SHARMA Sectors of the Indian
Economy Economic activities are activities that result in the production
of goods and services. Sectors are group of economic activities
classified on the basis of some criteria. Three types of classification
are: 1. Classification of economics activities on the basis of nature of
activity Primary Sector Secondary sector Tertiary sector 2.
Classification of economics activities on the basis of conditions of
work Organised sector Unorganised sector 3. Classification of economic
activities on the basis of ownership of assets Public sector (government
s control) Private sector (controlled by individual or group of
individuals) DIFFERENCES BETWEEN PRIMARY SECONDARY AND TERTIARY SECTORS
Primary Sector Secondary Sector Tertiary Sector 1. It includes those
activities which lead to the production of goods by exploitation of
natural resources. 2. It produces natural products like cotton, milk,
fruits, wheat, fish, subber etc. 3. It also called agriculture and
related sector because most of the natural products obtained are from
agriculture, diary, fishing, forestry etc. 4. Examples of primary sector
activities are agriculture, fishing, mining, animal husbandry etc. 1.
It includes those activities which result in transformation of natural
products into other forms by manufacturing. 2. It produces manufactured
goods like cloth, sugar, bricks etc. 3. It is also called the industrial
sector as this sector has come to be associated with different kinds of
industries. 4. Examples of secondary sector activities are
manufacturing and construction. 1. it includes those activities that in
the development of the primary & secondary sectors by supporting the
production process. 2. It does not produce goods but generates services
like transportation, communication, basting etc. 3. It is also called
the service sector as this sector generates services rather than goods.
Examples of tertiary sector activities are banking, insurance, finance
etc.
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Interdependence of the primary, secondary & tertiary sectors Why
the primary sector is called so? This is because it forms the base for
all other products that we subsequently make. Why the secondary sector
is called so? This is because it is the second step after primary. It
includes activities in which natural product are changed into other
forms through manufacturing that is associated with industrial activity.
Does the tertiary sector include only these services that help in the
production of goods? No. The Tertiary sector also includes some
essential services that may not help directly in the production of
goods. It includes some personal service providers like washer men,
barbers, cobblers, maids etc. & teachers, doctors etc. This sector
also includes certain new services based on information technology like
cyber cafes, ATM booths, call centers, software companies. Comparing the
three sectors Each of the three sectors (primary, secondary &
tertiary) produces a large number of goods and services. To know the
total production in any one of the three sectors, we need to count the
goods and services that are produced. This counting of goods and
services involves two problems: a) There are too many goods and services
produced. So, counting them could be a difficult task. b) We cannot add
cars furniture, computers etc. together to arrive at a total figure.
The first problem makes the process of counting a bit difficult. But its
not impossible to count all the goods and services produced. The second
problem can be overcome by adding the values of goods and services
produced rather than the actual numbers. Value = price quantity E.g. if
10,000kgs of wheat is sold at Rs 8 per kg, then value of wheat will be
Rs. 80,000