Class 10 Economics
Chapter 2- Sectors of Indian
economy
Notes
Understanding the economy
requires a breakdown of its sectors. This includes the primary sector,
involving raw resource extraction, the secondary sector, encompassing manufacturing,
and the tertiary sector, comprising services. Analyzing these sectors
illuminates economic dynamics and societal progress.
1. Introduction:
Understanding the economy
requires sectoral classification, which encompasses three crucial sectors:
primary, secondary, and tertiary.
2. Different Sectors of the
Economy:
a) Primary
Sector: Involves activities such as agriculture, fishing,
forestry, and mining, which directly extract natural resources from the earth.
For example, in India, agriculture is a significant component of the primary
sector, with millions of farmers engaged in crop cultivation and livestock
rearing.
b) Secondary
Sector: Encompasses industries that process or manufacture
goods using raw materials obtained from the primary sector. Examples include
textile manufacturing, automobile assembly, and steel production. For instance,
the Tata Group operates several steel plants across India, contributing to the
secondary sector's growth.
c) Tertiary
Sector: Comprises service industries that facilitate the
exchange of goods and provide various services to consumers and businesses. This
sector includes activities such as retail, transportation, healthcare,
education, banking, and hospitality. A notable example is the banking sector,
with banks like the State Bank of India and HDFC Bank offering financial
services to individuals and businesses.
3. Historical Changes in
Sectors:
Shifts have occurred from
the primary to the secondary and then to the tertiary sector:
- 1973-1974:
Primary sector dominance due to agricultural growth. For instance, during
this period, India experienced the Green Revolution, leading to increased
agricultural productivity.
- Industrial Revolution:
Secondary sector prominence with factory employment. In India, the textile
industry witnessed significant growth during the Industrial Revolution,
particularly in regions like Gujarat and Maharashtra.
- Present:
Tertiary sector dominance, with services like IT, telecommunications, and
e-commerce playing a vital role in driving economic growth. For example,
India's IT sector, including companies like Infosys and TCS, has emerged
as a global leader in software services.
4. Factors Leading to
Tertiary Sector Dominance:
a) Essential
Services: Services like healthcare and banking are indispensable
for societal well-being. For instance, hospitals like Apollo Hospitals and
Fortis Healthcare provide essential healthcare services to millions of Indians.
b) Development
in Other Sectors: Growth in the primary and secondary sectors
necessitates tertiary services. For instance, expansion in manufacturing
requires efficient transportation and logistics services.
c) Rising
Standards of Living: As incomes rise, there is an increased
demand for specific services like private healthcare, education, and leisure
activities.
d) Emergence
of New Service Sectors: Advancements in technology have led to
the emergence of new service sectors like IT, telecommunications, and
e-commerce, driving the growth of the tertiary sector.
5. Employment Distribution:
- Over half employed in the primary sector
(agriculture), yielding one-sixth of GDP. For example, in rural India,
agriculture remains the primary source of employment for millions of
people.
- Secondary and tertiary sectors employ
fewer people but contribute more to GDP. Industries like manufacturing and
services employ a significant portion of the urban workforce.
- Underemployment exists due to
inefficiencies in the agricultural sector, leading to a surplus workforce engaged
in low-productivity activities.
6. Creating More Employment:
Potential in education,
healthcare, and tourism sectors for job creation. For instance, the Indian
government's initiative to promote medical tourism has led to the growth of the
healthcare sector, creating employment opportunities for healthcare
professionals and support staff. Industries in semi-rural areas, processing
agricultural products, and promoting small-scale ventures can generate
employment. For example, agro-processing units in rural areas create job
opportunities for farmers and rural youth.
Mahatma Gandhi National
Rural Employment Guarantee Act (MGNREGA): Provides 100 days of rural employment
for unskilled workers, aiming for asset creation and unemployment allowances.
For example, in states like Rajasthan and Andhra Pradesh, MGNREGA has provided
rural households with employment opportunities in various infrastructure
projects.
7. Organised and Unorganised
Sectors:
- Organised sector:
Government-regulated with fixed hours and payroll. Industries like IT,
banking, and manufacturing operate within the organised sector, offering
formal employment with benefits.
- Unorganised sector:
Small, unregulated units with irregular employment and low wages. For
example, street vendors, construction workers, and domestic helpers often
work in the unorganised sector, lacking job security and social benefits.
8. Protecting Unorganised
Sector Workers:
Government interventions needed to ensure fair
wages, regular employment, and social security. For instance, the government
can enforce minimum wage laws and provide social security benefits like
healthcare and pension schemes for unorganised sector workers. Support for
small-scale industries and protection for casual workers essential for social
and economic development. For example, government-backed microfinance
initiatives and skill development programs can empower workers in the unorganised
sector, improving their livelihoods.
9. Public and Private
Sectors:
- Public sector:
Government-owned, providing essential services at reasonable costs.
Industries like railways, defense, and public healthcare operate within
the public sector, catering to the diverse needs of the population.
- Private sector:
Profit-driven, offering services at market rates. Companies like Reliance
Industries and Tata Group operate within the private sector, focusing on
profitability and market competitiveness.
10. Examples of some
important public sector units of India
a) Indian
Oil Corporation Limited (IOCL): One of India's largest oil
and gas companies, IOCL operates refineries, pipelines, and fuel stations
nationwide, playing a pivotal role in the country's energy sector.
b) Bharat
Heavy Electricals Limited (BHEL): A leading engineering and
manufacturing company, BHEL specializes in power generation equipment,
transformers, and transmission systems, contributing significantly to India's
power infrastructure.
c) Steel
Authority of India Limited (SAIL): A major steel producer in
India, SAIL operates integrated steel plants, producing a wide range of steel
products essential for infrastructure development, construction, and
manufacturing sectors.
d) State
Bank of India (SBI): India's largest public sector bank, SBI
provides a comprehensive range of banking services, including retail and
corporate banking, wealth management, and international banking, serving
millions of customers
11. Examples of some
important private sector units of India
a) Tata
Consultancy Services (TCS): As a global leader in IT services,
consulting, and business solutions, TCS leverages cutting-edge technology to
drive digital transformation for businesses worldwide.
b) Reliance
Industries Limited (RIL): RIL is India's largest conglomerate,
with interests in petrochemicals, refining, retail, telecommunications, and
digital services, contributing significantly to the country's economic growth.
c) Infosys
Limited: A leading global provider of consulting, technology, and
outsourcing services, Infosys delivers innovative solutions to help clients
navigate the digital landscape and achieve business objectives.
d) HDFC
Bank: HDFC Bank is one of India's largest private sector
banks, offering a wide range of financial products and services, including
retail banking, corporate banking, and wealth management, catering to diverse
customer needs.
e) Flipkart: As
India's leading e-commerce marketplace, Flipkart offers a vast array of
products across categories such as electronics, fashion, home essentials, and
more, revolutionizing the way Indians shop online.
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