CBSE X E II SECTORS OF THE INDIAN ECONOMY

Class X

Economics

Unit II – Sectors of the Indian Economy

Notes

Activities of the primary sector: Those activities in which a good is produced by exploiting natural resources

Examples of activities of primary sector: Agriculture, forestry, dairy, fishing

Activities of secondary sector: Those activities in which natural products are changed into other forms through a process of manufacture

Industrial sector: Another name for secondary sector

Activities of tertiary sector: Those activities which do not produce any good but support production processes by providing services

Examples of activities of tertiary sector: Transport, storage, communication, banking, trade, teaching, health care, personal services (washing, hair cut, shoe mending etc.), legal advice, administration, accounting, IT, hotel industry

Total production in a sector: It is the value of final goods and services produced in the sector during a particular year.

Gross Domestic Product (GDP): The sum of production in the three sectors; value of all the final goods and services produced within a country during a particular year

Ministry of Statistics and Programme Implementation: The ministry that is entrusted with the task of calculating the GDP of the country

Unemployment: An economic condition marked by the fact that individuals actively seeking jobs remain unhired

Underemployment: A situation in which a person is employed but not in the desired capacity whether in terms of compensation or hours or level of skill and experience

Disguised unemployment: A situation in which a worker’s marginal productivity is zero, that is, his presence or absence does not affect the aggregate output

National Rural Employment Guarantee Act (NREGA) 2005: An act that implements the right to work in 200 districts of India, by guaranteeing 100 days of employment in a year, failing which, unemployment allowances will be paid

Organized sector: A sector in which the terms of employment such as nature of work, hours, conditions, pay and other benefits are well-defined and specific

Unorganized sector: A sector in which there is no well-defined pattern of terms of employment
(You may see the draft of the Unorganized Sector Workers' Social Security Bill 2007 at http://labour.nic.in/ss/UnorganisedSectorBillinRS.pdf)

Public sector: Industries and enterprises that are owned and controlled by the state

Private sector: Industries and enterprises that are not state controlled but owned by individuals

Joint sector: Industries and enterprises that are owned partly by the government and partly by individuals