Sectors of the Indian Economy

Do you think the classification of economic activities into primary, secondary, and tertiary is useful? 

The classification of economic activities into primary, secondary, and tertiary is useful for the following reasons. 

1. It helps us to calculate total production in each sector and, hence, estimates the G.D.P. 

2. It gives us an idea about the total employment generated in each sector and the number of people working in each sector. 

3. It tells us about the productivity of each sector, what percentage of the population is employed in each sector, and what percentage of G.D.P. is calculated from each sector. 

4. This classification gives us an idea about the level of development of an economy. 

5. The less developed an economy, the higher the share of the primary sector in total production and the more developed an economy, the higher the share of the secondary, and the tertiary. 

What does the history of developed countries indicate about the shifts that have taken place between the sectors? 

1. The history of developed countries indicates that there has been a further shift from secondary to tertiary in developed countries. 

2. The service sector has become the most important in terms of total production. 

3. Most of the working people are also employed in the service sector. This is the general pattern observed in developed countries. 

What do you understand by 'Disguised Unemployment' in both rural and urban areas? 

   Disguised Unemployment or Underemployment is a situation in which more people are engaged in an activity than required. They appear to be employed but not really employed. This kind of underemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployment. 

   In India, the problem of disguised unemployment is particularly seen in rural areas where more people work in the fields than necessary. In such a case, everyone works and no one remains idle but their labour efforts get divided. 

   In urban areas, there are thousands of casual labourers who look for work but may not get employment. They work as plumbers, painters, street vendors, etc., where they may work for a whole day but earn very little. 

Why do you think MNREGA 2005 is referred to as "Right to Work"?

1. The Central Government in India made a law implementing the right to work in 625 districts in India. 

2. It is also called Mahatma Gandhi National Rural Employment Guarantee Act 2005. 

3. The objective of implementing this law is that 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. 

4. If the government fails in its duty to provide employment, it will give unemployment allowance to the people. 

5. This law is called "Right to Work". 

Why should be worried about Unemployment? 

   We should be worried about unemployment as it decreases the earning capacity of the population which results in living standards and poverty. 

Differentiate between Organised and Unorganised sectors. 

• Organised Sector: 

1. It covers those enterprises or places of work where the terms of employment are regular. 

2. People have assured work. 

3. They are registered by the government and have to follow rules and regulations made by the government. 

4. Employees can not be fired without any reason. 

5. Workers in this sector enjoy the security of employment and also paid leaves, payments during holidays, PF, and medical benefits. 

• Unorganised Sector: 

1. The organised sector is characterised by small and scattered units which are largely outside the control of the government. 

2. There are rules and regulations but these are not followed. People don't have assured work. 

3. Employees can be fired without any reason. 

4. There is no provision for overtime, paid leaves, holidays, leaves due to sickness, etc... 

5. Examples: Workers in industries. 

Give a few examples of public sector activities. 

1. Some examples of public sector activities are the construction of roads, bridges, railways, electricity generation, providing irrigational facilities through dams, etc. 

2. The government has to undertake such heavy spending activities because the private sector may not bear the expenses to provide facilities to the people at a low cost. 

3. So the government ensures that these facilities are available for everyone. 

Explain how the public sector contributes to the economic development of a nation. 

1. The public sector contributes in providing economic infrastructure facilities like roads, bridges, railways, etc. 

2. It creates employment opportunities. 

3. It runs educational institutions, hospitals, water supply, and electricity, which is useful in the economic development of a nation. 

4. The welfare of the people is the main aim of this sector. 

5. It promotes balanced regional development. 

6. It ensures the availability of goods at cheap rates. 

7. It generates financial resources for development. 

8. It encourages the development of small, medium, and cottage industries. 

9. It promotes rapid economic development through creation and expansion of infrastructure.