SECTORS OF INDIAN ECONOMY CLASS 10

 Sectors of Indian Economy 

Q6: Do you think the classification of economic activities into primary, tertiary, and secondary is useful? Explain how. 

Answer:

The classification of economic activities into primary, secondary, and tertiary sectors is helpful as mentioned below :

1.It provides information on how and where the people of a country are employed. For example in India in 2000, the share of the primary sector in employment was about 60 percent ie. more than other sectors.

2.It also helps in ascertaining as to which sector of economic activity contributes more or less to the country’s GDP and per capita income.

3.If the tertiary sector is developing much faster than the primary sector, then it implies that agriculture is depleting and the government must take measures to rectify this.

4.The knowledge that the agricultural profession is becoming unpopular or regressive can only come if we know which sector it belongs to.

5.It provides us information about employment conditions in different sectors. For example in India, the primary sector faces the problem of disguised unemployment. In this sector, more people are employed and even if some are removed, production will not be affected.

6.It provides us the information about progress in different sectors. For example, the importance of the tertiary sector has increased due to various factors need for basic services and the coming of IT services.

In view of the above factors, it is necessary to classify economic activities into three sectors for smooth economic administration and development.

Q7. For each of the sectors that we came across in this chapter, why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.

Ans:

1Employment and GDP are two of the most important factors in the development of a country. 

2.They help in determining two important things—per capita income and productivity.

3.Hence, in each of the three sectors, employment rate and status, as well as its contribution to the GDP, help us understand how that particular sector is functioning and what needs to be done to initiate further growth in it.

4.Other issues that should be examined: literacy rates, poverty and nutrition as well as basic health care facilities. 

Q9. How is the tertiary sector different from other sectors? Illustrate with a few examples.
Ans:

• The tertiary sector is different from the other sectors because it does not manufacture or produce anything. 
• For this reason, it is also known as the service sector.
  
• It aids the primary and secondary sectors in development. 
• The tertiary sector involves services like transport, storage of goods, communications, banking and administrative work.

Q10. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Ans:

• Disguised unemployment is a form of underemployment where one has a job, but the work they are doing is less than their potential.
• It is not apparent as compared to someone without a job who is clearly unemployed. 

• In rural areas, this can be seen in the farming community where all members of a family might be working on a farm even though so many hands are not required. 
• They do so because of lack of another job. In urban areas, disguised unemployment can be seen in the service sector where painters, plumbers, repair person and those doing odd jobs have work, but they may not find daily or regular employment.

Q11: Distinguish between open unemployment and disguised unemployment. 

•Open Unemployment – When a country’s labour force do not get opportunities for adequate employment, this situation is called open unemployment. This type of unemployment is generally found in the industrial sector of our country. This is also found among the landless agricultural labourers in rural areas.

• On the other hand, disguised unemployment is mostly found in the unorganised sector where either work is not consistently available or too many people are employed for some work that does not require so many hands.

Q12: Tertiary sector is not playing any significant role in the development of Indian economy. Do you agree/ Give reasons in support of your answer? 

Answer:

“The tertiary sector is not playing any significant role in the development of Indian economy” is partially correct due to reasons as mentioned below :

•The share of tertiary sector in employment has not increased in proportion to its increase in production. In 2000, the production in service sector rose by 11 times, whereas employment has risen less than three times.

 Therefore, still more than half of the workers in the country are working in the primary sector.

•New services such as based on information technology have become important, but not all the services of the service sector are growing well. At one end are highly skilled and educated workers but on the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair persons, transport persons. These persons barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available to them. Such persons can not play any important role in the development of the Indian economy. It is this part of service sector that is not growing in importance.

Q13. Service sector in India employs two different kinds of people. Who are these?
Ans:
(i)  Highlight skilled and educated people: service sector in India employs them in multinational companies, public sector and several private enterprises. They are an asset as they add up high income in the National Income of the country.

(ii) Low skilled and less educated people: They are also employed in the service sector, but most of them are uneducated and work in unorganised sectors. They are employed as painters, plumbers, repairpersons, etc. 

Q14: Workers are exploited in the unorganized sector. Do you agree with this view.? Give reasons in support of your answer.

Answer:

Yes, workers are exploited in the unorganized sector. This would be clear from the following points:

1.There is no fixed number of working hours. The workers normally work 10 – 12 hours without paid overtime.

2.They do not get other allowances apart fro the daily wages.

3.Government rules and regulations to protect the labourers are not followed there.

4.There is no job security.

5.Jobs are low paid the workers in this sector are generally illiterate, ignorant and unorganized. So they are not in a position to bargain or secure good wages.

6.Being very poor they are always heavily in debt. So, they can be easily made to accept lower wages

Q16. Compare the employment conditions prevailing in the organised and unorganised sectors.
Ans:

• The employment conditions prevailing in the organised and unorganised sectors are vastly different. 
• The organised sector has companies registered with the government and hence, it offers job security, paid holidays, pensions, health and other benefits, fixed working hours and extra pay for overtime work. 
• On the other hand, the unorganised sector is a host of opposites. 
• There is no job security, no paid holidays or pensions on retirement, no benefits of provident fund or health insurance, unfixed working hours and no guarantee of safe work environment.

Q17 Explain the objective of implementing the MG NREGA 2005.
Ans: The objective of implementing the MG NREGA 2005 are:

• To increase the income and employment of people.
• Every state/region can develop tourism, regional craft, IT, etc. for additional employment.
• The central government made a law implementing the right to work in 200 districts.
• MGNREGA aims to provide employment of 100 days. If it fails to do so, it will give unemployment allowances to the people.

Q20. Give a few examples of public sector activities and explain why the government has taken them up.
Ans:

AIIMS: To provide quality health services at a reasonable rate was the main purpose of the government to start this, besides medical education.
Railways: only the government can invest a large sum of money on a public project with long gestation period. And also to ensure and provide transportation at cheap rates.
Electronic Power Generation by NTPC: The government has taken this up to provide electricity at a reasonable rate to consumers.

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

Answer : In the following ways Public sector contributes to the economic development of a nation:

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

• It creates employment opportunities.

• It generates financial resources for development.

• It ensures equality of income and wealth, thus a balanced regional development.

• It encourages development of small, medium and cottage industries.

• It ensures easy availability of goods at moderate rates.

Contributes to community development i.e. to the Human Development Index (HDI) via health and educational services.

22. The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples.

Answer: The workers in the unorganised sector need protection:

Wages: Labourers who are employed as a repair person, vendor etc. do not have fixed income. They nearly manage to earn their living. They are not employed all through the year.

Safety: Workers in unorganized sector are not provided with safe drinking water or a clean environment. Eg., Working in mining, chemical industries is hazardous.

Health: Leave not granted in case of sickness. Medical facilities are not offered, E.g. Construction workers