NCERT Solutions for Class 10 Economics Chapter 2 Sectors of The Indian Economy

i. Has not

ii. Tertiary

iii. Organised

iv. Large

v. Natural

v. Interdependent

a. Option iii) ownership of enterprise

b. Option i) Primary

c. Option ii) All final goods and services

i. Tourist guide, appointed by the government.

ii. Vegetable vendor, since it does not require a formal education.

iii. Cobbler - workers in the public sector, his profession belongs to the private sector.

iv. SAHARA Airlines is a private enterprise, others are government undertakings.

The worker percentage of the unorganised sector in the city is 70%.

Yes, classification of economic activities into primary, tertiary, and secondary is very much useful since it can give information on how and where the people of a country are employed.

It also helps in ascertaining, which sector of economic activity is contributing more or less in the GDP of the country and per capita income.

For example: Suppose if the tertiary sector is developing much faster compared to the primary sector, it means agriculture is depleting. We can observe that the agriculture profession is getting unpopular or regressive, if we classify economic activities for smooth administration as well as development.

Each sector should focus on employment and GDP since these determine the size of a country’s economy. Focus on employment and GDP will definitely help in determining two important things, that is, per capita income and productivity.

So, in each sector, employment rate, status, and its contribution towards the GDP, which helps to understand how a particular sector is functioning and what can be done to initiate future growth.

Other related issues which need to be examined are as follows:

• Balanced regional development

• Equality in income and wealth among all the citizens of the country.

• Modernization of technology.

• How to eradicate poverty

• Self-reliance of the country

• To have surplus food production in India.

We have classified them according to the nature of the activity and whether they are working in an organised or unorganised sector. This gives us information on how and where people are employed.

The tertiary sector is different from the other 2 sectors because the other two sectors produce goods, the only difference is that this sector does not manufacture goods by themselves. The activities under this sector help in developing the primary and secondary sectors. These activities support the manufacturing process.

Example: communication, banking, storage, insurance, transport, trade etc. Hence, these are called the service sector.

 Disguised unemployment is when the people who are visibly employed but they are actually unemployed. This kind of situation is called Hidden Unemployment.

For example:

• In rural areas, this kind of employment is found in the agriculture sector, suppose in a family of 9 people everyone is engaged and doing work in the same agricultural area. If 4 people are removed from it, there will be no reduction in the result. Hence, these 4 people are actually disguisedly employed.

• In urban areas, this kind of unemployment can be seen in service sectors, for example, in a family where all the members are working in a small business which can be managed by a less number of people.

No, I don’t agree with this statement. The tertiary sector has contributed immensely in the last two decades in the Indian economy. The information technology field has grown, and the GDP share of the tertiary sector has grown from 40% in 1973 to 50% in 2003.

The service sector in India employs:

• The people who are there in this service may directly help in the production of goods. For example, people in transportation, storage, communication, finance etc.

• The people involved in these services are not directly helping in the production of goods. For example, teachers, doctors, barbers, cobblers, lawyers, etc. They are called ancillary workers which means that those who are giving their services to the primary sector providers.

Yes, I agree workers are exploited in the unorganised sector:

• Having no fixed number of working hours. The workers work 10-12 hours without paid overtime.

• They do not get extra allowances apart from the daily wages.

• Government rules and regulations for the protection of labourers are not followed.

• No job security.

• Jobs are low paid and the workers in this sector are illiterate, ignorant, and unorganised.

On the basis of employment conditions, the activities in the economy are classified into organised and unorganised sectors.

• Organised Sector: This sector covers those enterprises that are registered by the government and have to follow rules and regulations. Example: Reliance, GAIL etc.

• Unorganised Sector: It consists of small and scattered units which are not in control of the government. They do not follow any rules and regulations made by the government. Example: Casual workers in construction, shops etc. There is no job security.

: Employment conditions in the organised and unorganised sectors are quite different.

• The organised sector consists of companies registered under government, so it offers job security, paid holidays, pension, health and other benefits, fixed working hours and extra pay for overtime work.

• Unorganised sector is a host of opportunities, there is no job security as well.

• No paid holidays or pensions or retirement, no benefits of provident fund or health insurance, no fixed work timings and no guarantee of a hygienic work environment.

The objectives of implementing NREGA 2005 are listed below:

a. To increase income and employment of people.

b. Every state will be able to develop tourism, regional craft, IT etc.

c. Central government made a law to implement, right to work in 200 districts.

d. NREGA aims to provide 100 days of employment.

Public Sector: 

• Public welfare is the main objective.

• It is managed as well as controlled by the government.

• It provides education, health, food, and security to the people like Indian railways, Post office, etc.

Private Sector:

• Maximum profit in terms of earning is the main objective.

• It is managed and controlled by an individual or group of individuals.

• It provides consumer goods to the people; Reliance, TISCO.

i. In 1950,

Total share of sectors in GDP = (8000+19000+39000) = 138,000 crore

Share of Primary sector =  80000 / 138000×100 = 57.97% 

Share of Secondary sector =  19000 / 138000×100 =13.76% 

Share of Tertiary sector = 99000 / 138000×100 =28.26%

In 2000,

Total share of sectors in GDP = (314000+280000+555000) = 1149000

Share of Primary sector =  314000 / 1149000×100 = 27.32%

Share of Secondary sector = 280000 / 1149000×100 = 24.36%

Share of Tertiary sector = 555000 / 1149000×100 = 48.30%

ii. Bar graph

Bar Graph

iii. The conclusion drawn is that the share of the tertiary sector in the GDP has approximately doubled, the primary sector has halved. The secondary sector has increased by 10% in the last 5 years.