Sectors of indian economy. cbse, class 10, social science.

A self learning facilitating Power Point Presentation for the students of class-X, CBSE.

1. SECTORS OF INDIAN ECONOMY social science CBSE- Class-10 8/8/2021 Modern English school. Pankaj Saikia …. 2020. Pankaj Saikia-2021

2. Classification of human activities P.Saikia-2020 8/8/2021 Pankaj Saikia-2021

3. Economic activities It includes the activities which are performed for the purpose of earning money or money’s worth. In other words activities that produce something the value of which can be measured in terms of money. Example : Making furniture by a carpenter, Editing text by an editor of a news paper, Teacher teaching students in class. Etc. P.Saikia-2020 8/8/2021 Pankaj Saikia-2021

4. Non-Economic activities It includes the activities which are not performed for the purpose of earning money or money’s worth but to satisfy some emotional, physiological or psychological needs. Example : Playing for enjoyment Going out for recreation, Mother teaching her child at home, taking care of pet, Etc. P.Saikia-2020 8/8/2021 Pankaj Saikia-2021

5. Classification of Economic Activity 8/8/2021 Pankaj Saikia-2021

6. SECTORS OF INDIAN ECONOMY CLASSIFICATION -1 P.Saikia-2020 8/8/2021 Pankaj Saikia-2021

7. PRIMARY SECTOR Primary sector refers to the economic activities in which natural goods are produced either through direct extraction from nature or by using some natural or biological process. It is also called Agriculture and related sector . Example—Agriculture , Mining, Fishing, Forestry, Dairy etc P.Saikia-2020 8/8/2021 Pankaj Saikia-2021

8. Characteristics of Primary Sector It produces natural goods. Goods are produced by exploiting from the nature or by using natural process. It is the supplier of raw materials to secondary sector. 8/8/2021 Pankaj Saikia-2021

9. SECONDARY SECTOR It includes the activities which converts the form of natural goods into some other more useful forms through a process of manufacturing. Example : Yarn is converted in to cloth by weaving, (Textile mill), sugarcane converted in to sugar ( Sugar mill), Crude oil converted in to petrol (Refinery), etc. P.Saikia-2020 8/8/2021 Pankaj Saikia-2021

10. Characteristics of Secondary Sector It produces manufactured goods. Goods are produced through a process of manufacturing. It is the consumer of primary sector. 8/8/2021 Pankaj Saikia-2021

11. TERTIARY SECTOR It includes the activities that does not produce any goods but provide services. It is known as service sector. These are the activities that helps in the development of the primary & secondary sector. Example: Transportation, Storage, trade, Communication, Banking, Insurance, etc. P.Saikia-2020 8/8/2021 Pankaj Saikia-2021

12. Characteristics of Tertiary Sector It produce services. Services are rendered in presence of users, which are intangible and cannot be stored for future used. It assist the Primary and Secondary sector . 8/8/2021 Pankaj Saikia-2021

13. Difference between Primary and Secondary sector 8/8/2021 Pankaj Saikia-2021 Primary Sector Secondary Sector It produces natural goods. It produces manufactured goods. Goods are produced by exploiting from the nature or by using natural process. Goods are produced through a process of manufacturing. It is the supplier of secondary sector. It is the consumer of primary sector.

14. Difference between Primary and Tertiary sector 8/8/2021 Pankaj Saikia-2021 Primary Sector Tertiary Sector It produces natural goods. It produces services. Goods are produced by exploiting from the nature or by using natural process. Services are rendered in presence of users, which are intangible and cannot be stored for future used. It is the supplier of secondary sector. It assist the Primary and secondary sector.

15. Difference between Secondary and Tertiary sector 8/8/2021 Pankaj Saikia-2021 Secondary Sector Tertiary Sector It produces manufactured goods. It produces services. Goods are produced through a process of manufacturing. Services are rendered in presence of users, which are intangible and cannot be stored for future used. It is the consumer of primary sector. It assist the Primary and secondary sector.

16. The 3 Sectors Are Dependent On Each Other 8/8/2021 Pankaj Saikia-2021

17. Interdependence of Three Sectors 8/8/2021 Pankaj Saikia-2021

18. Interdependence of three Sectors All the three sectors Primary, Secondary and tertiary are dependent on each other. As all the three sectors are interdependent. the product or services reach in to the hand of the consumers with the collective contribution of all three sector. For development of one sector, development of other sector is very important as they can not work independently. 8/8/2021 Pankaj Saikia-2021

19. Primary sector is dependent on Secondary sector For market- Secondary sector purchased the goods produced by the primary sector. For Tools- Various tools used by the primary sector produced by secondary sector. For other inputs like fertilizer- Produced by secondary sector. 8/8/2021 Pankaj Saikia-2021

20. Primary sector is dependent on Tertiary sector For Trade- Tertiary sector facilitate the sale of goods produced by primary sector. For services like transportation, Banking, insurance, power, etc. For Ideas and technology- Developed by tertiary sector through research. 8/8/2021 Pankaj Saikia-2021

21. Secondary sector is dependent on Primary sector For Raw Material- It gets raw materials from the primary sector. E.g. Sugar cane for sugar mill. For Source of Energy- such as natural gas, coal, fire wood, etc. For food- People working in secondary sector gets food from primary sector. 8/8/2021 Pankaj Saikia-2021

22. Secondary sector is dependent on Tertiary sector For Trade- Tertiary sector facilitate the sale of goods produced by secondary sector. For services - Like transportation, Banking, insurance, power, etc. For Ideas and technology- It uses the ideas and technology developed by tertiary sector. 8/8/2021 Pankaj Saikia-2021

23. Tertiary sector is dependent on Secondary sector For market- Secondary sector purchased the services of the tertiary sector. For Tools- Various tools used by the tertiary sector produced by secondary sector.- Seasor for Barber. For other inputs - Medicine for treatment, Polish for shoe cleaning, etc. 8/8/2021 Pankaj Saikia-2021

24. Tertiary sector is dependent on Primary sector For market- Primary sector is the buyer of the services of the tertiary sector like transportation. For food- People working in secondary sector gets food from primary sector. Base of services- Some extraction sites of primary sector provides the opportunity of services like tourism. 8/8/2021 Pankaj Saikia-2021

25. Comparing Three Sectors Activities under Primary, Secondary and Tertiary sector produces a large number of goods and services, and a large number of people involved in those activities. Moreover, most of the time a good or service become consumable with the collective contribution of all the three sectors. Therefore comparing the performance of three sector is not easy. For this reason the economists classified the goods and services in to two broad groups- Intermediate Goods and Final Goods. 8/8/2021 Pankaj Saikia-2021

26. INTERMEDIATE GOODS The goods or services that are used in production of some other goods or services are known as intermediate good. For example- Row cotton used in producing cloths. Sugarcane used in producing sugar. Milk used in making butter. Etc. 8/8/2021 Pankaj Saikia-2021

27. FINAL GOODS The goods or services that are readily available for consumption or no further processing is needed to make ready for consumption are known as Final Goods. For example- A pencil. A Car A packet of bisquite . Etc. 8/8/2021 Pankaj Saikia-2021

28. GROSS DOMESTIC PRODUCT The sum of the monetary value of final goods and services produced within a country in a year is called Gross Domestic Product (GDP). Here- Gross refers - Total or sum Domestic refers- A political territory Product refers- Monetary value of final products 8/8/2021 Pankaj Saikia-2021

29. Why only final goods The value of only final goods and services are considered in estimating GDP because the value of final goods already include the value of all intermediate goods or services used in production of the final good. It is done to avoid multiple counting of same product or service. 8/8/2021 Pankaj Saikia-2021

30. GDP estimation in India The central statistics office under the Ministry of Statistics and Progremme Implementation estimates the GDP of India by collecting and compiling the data on production from various departments of the state governments and union territories. 8/8/2021 Pankaj Saikia-2021

31. Historical change in sectors in terms of contribution to GDP 8/8/2021 Pankaj Saikia-2021

32. Conclusion derived from the data The production of all the three sector is increasing but the growth rate of different sectors are different. With development the contribution of primary sector to GDP is decreasing whereas the contribution of Tertiary sector is increasing. 8/8/2021 Pankaj Saikia-2021

33. Historical change in sectors in terms of Employment 8/8/2021 Pankaj Saikia-2021

34. Conclusion derived The Primary sector is the leading employment provider in all the time. There is a gradual shift of employment from Primary Sector to Secondary and Tertiary Sector. Percentile increase in employment of Tertiary sector is much lower in comparison to percentile increase in contribution to GDP. 8/8/2021 Pankaj Saikia-2021

35. Reason for low productivity of primary sector The Primary sector is still using poor and comparatively less advanced technology . Infrastructure for primary sector is not well developed. Productivity of primary sector is dependent on natural resources which is limited and decreasing day by day. More number of people are working in primary sector than exactly required. 8/8/2021 Pankaj Saikia-2021

36. Disguised Unemployment The condition of employment in which more people are engaged in a work than the number of people exactly required. The work can be continued smoothly even after removing some of the worker working there. 8/8/2021 Pankaj Saikia-2021

37. DIFFERENCES Open unemployment People are not in work at all. They have no income. They are in search of employment. As it is clearly visible, easier to solve. Disguised unemployment People are apparently in work. They earns some but less than their potential. As they are in work they do not search other employment. It is not open and hidden therefore difficult to solve . 8/8/2021 Pankaj Saikia-2021

38. Reasons for growth of Tertiary Sector Increasing demand for basic services. Development of primary and secondary sector. Increase in disposable income. Introduction of new services. Emergence of new laws. 8/8/2021 Pankaj Saikia-2021

39. Underemployment in Sectors Disguised unemployment is not seen only in primary sector. It exist in other sectors too. 8/8/2021 Pankaj Saikia-2021

40. SECTORS OF INDIAN ECONOMY CLASSIFICATION 2 : CONTINUE 8/8/2021 Pankaj Saikia-2021

41. Organised Sector 8/8/2021 Pankaj Saikia-2021

42. Unorganised Sector The activities in which the conditions of employment is not governed by any law. 8/8/2021 Pankaj Saikia-2021

43. DIFFERENCES Organised Sector Conditions of employment like salary, hours of work, etc. governed by laws . There is formal contract of appointment and letter is issued. Fixed hours of work and regular income. Gets paid leave and leave with pay. Unorganised Sector No law controls the condition of employment. Neither formal agreement nor appointment letter is issued. No fixed hours of work and uncertain income. Neither paid leave nor leave with pay 8/8/2021 Pankaj Saikia-2021

44. DIFFERENCES (Continued) Organised Sector Gets Job Security. Gets after retirement benefit. Avails benefit like medical, insurance, housing, child education, etc. Avails facilities like provident fund, gratuity etc. Unorganised Sector No Job security. At any time they are prone to loss the job No after retirement benefit. No other benefit as availed by the workers in organized sector. No provident fund, gratuity and other benefit. 8/8/2021 Pankaj Saikia-2021

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46. Problems faced by the workers in unorganised sector No law to govern their working conditions like salary or wages, working hours, termination, etc. workers are bound to work as per decree of the employer. Workers do not have job security and at any time there is a chance of losing the job. Income in this sector is neither regular nor secured. They do not get benefits like medical, pension, insurance, paid holidays and leave, provident fund, etc. generally avail by workers of organised sector. 8/8/2021 Pankaj Saikia-2021

47. Why it is important to protect the workers in unorganised sector Around 92% of the country’s working population is working here with many problems, therefore it is essential to protect their interest . Most of basic goods like food and other agriculture base products and services are provided by the unorganised sector without which the economy of the country will paralyzed. 8/8/2021 Pankaj Saikia-2021

48. Why it is important to protect the workers in unorganised sector (cont.) It is the highest contributing sector of the economy; therefore people working there must be protected. Many law and order situation arises in different times due to lake of proper governance in unorganised sector; therefore it is important to have some rules and regulations to avoid those 8/8/2021 Pankaj Saikia-2021

49. Measures to protect the workers in unorganised sector Creating more employment in organised sector By developing Infrastructure facilities. Providing subsidised facilities to the workers in the unorganised sector through Direct Benefit Transfer (DBT) By making some laws to regulate the works in unorganised sector. Developing mechanism for strict implementation of the laws. 8/8/2021 Pankaj Saikia-2021

50. When a person is willing to work at the prevailing wage rate but fails to get a job, it is called unemployment. 8/8/2021 Pankaj Saikia-2021

51. When a person can be said as unemployed . He/she must be within the age of 18 to 60 years. Must have the required skill to do the job what he or she is willing to do. Must be ready to work at the prevailing rate of wage in the market. Must have the willingness to work. Must have the legal approval to do the job he / she desired. 8/8/2021 Pankaj Saikia-2021

52. Why unemployment is a problem? Unemployed people consumes with the income of those who are in work. They creates an economic burden on the employed population. Unemployment leads to decrease in Per Capita Income of a country. Unemployment itself is an wastage of most valuable human resource. Unemployed often leads people to be involved in socially or legally undesirable activities in order to earn livelihood. 8/8/2021 Pankaj Saikia-2021

53. GOVERNMENT AIDED SCHEMES TO FIGHT UNEMPLOYMENT Government, from time to time, announces and implements various employment scheme to fight unemployment or hidden employment. Schemes like NREGA (National Rural Employment Guarantee Act) is the latest scheme announced by Government in 2004. This programme guarantees a minimum of 100 days of employment to at least one person from every rural household. This is part of government’s effort to ensure the ‘Right to Work’ to the rural poor citizen. 8/8/2021 Pankaj Saikia-2021

54. Measures to create Employment Development of Infrastructure facilities. Setting up of Industries. Providing s kill base vocational Training. Easy and affordable credit facilities. 8/8/2021 Pankaj Saikia-2021

55. Classification (on the basis of ownership) 8/8/2021 Pankaj Saikia-2021

56. Public Sector 8/8/2021 Pankaj Saikia-2021

57. Characteristics of Public Sector Owned and controlled by Government. Main objective is public welfare and provides goods and services at reasonable price. Mostly works in the field of basic necessity of general public . As the general public is the real owner of the government money, the public sector is accountable to the general public. . 8/8/2021 Pankaj Saikia-2021

58. Private Sector 8/8/2021 Pankaj Saikia-2021

59. Characteristics of Private Sector Owned and controlled by individual or group of individuals. Main objective is earning profit for the owner. Focus is on high level of productive efficiency and competition. Mainly works in the field with higher potential for earning profit. Managed professionally abiding the general laws of the government 8/8/2021 Pankaj Saikia-2021

60. Public and Private Sector Public Sector Own by Government. Run on service motive. Mostly provides the basic services like healthcare, education, transport, etc. Better facilities to employees but low productivity. Cannot work professionally due to high level of political interference. Private Sector Own by individual or group of Individual. Run on Profit motive. Provides relatively luxury goods and services like Restaurants, Theaters, etc. Poorer facilities to employees but high productivity. High level of efficiency due to professional management and autonomy. 8/8/2021 Pankaj Saikia-2021

61. Importance of Public Sector 1. As the public sector works with service motive, it provides goods and services at a reasonable price which are affordable even to the poor. Ex. Government Medical Services. 2. Public sector is needed to restrict the speculative private sector from their monopolistic practices in pursuit of earning more profit. Ex. Indian Airlines. 8/8/2021 Pankaj Saikia-2021

62. Importance of Public Sector (cont.) Some activities related to economic and political security of a country must be under the control of the government. For example- Printing of currency note. 4. Private sector mostly concentrated in areas with higher profitability. Therefore public sector must work to satisfy the need of the people living in backward areas. For example: Government schools. 8/8/2021 Pankaj Saikia-2021

63. Importance of Public Sector (cont.) 5. The private investors are either unable or reluctant to invest in activities requiring huge cost and long time to recover it. The Public Sector must invest in such areas as those are mandatory for development of infrastructure. For example; Road Construction, Dam Construction, Space and atomic research, etc.   8/8/2021 Pankaj Saikia-2021