SECTORS OF INDIAN ECONOMY

PRIMARY SECTOR

Activities undertaken by directly using natural resources.

Example—Agriculture, Mining, Fishing, Forestry, Dairy etc.

It is called primary sector because it forms the base for all other products that we subsequently make.

Since most of the natural products we get are from agriculture, dairy, forestry, fishing it is also called Agriculture and related sector.

AGRICULTURAL OR RELATED SECTOR

INCLUDES…

SECONDARY SECTOR It covers activities in which natural

products are changed into other forms through ways of manufacturing that we associate with industrial activity.

It is a next step after primary, where the product is not produced by nature but has to be made.Some process of manufacturing is essential, it could be in a factory, a workshop or at home.

Example: Using cotton fibre from plant, we spin yarn and weave cloth; using sugarcane as a raw material we make sugar or gur; we convert earth into bricks.

Since this sector is associated with different kinds of industries, it is also called industrial sector.

INDUSTRIAL SECTOR INCLUDES…

TERTIARY SECTOR

These are the activities that help in the development of the primary & secondary sector.

These activities by themselves do not produce good but they are an aid and support to the production process.

Example:* Transportation--Goods that are produced in the primary sector need to be transported by trucks or trains and than sold in the wholesale and retail shops. Since these activities are generate

services rather than goods it is also called Service sector.

SERVICE SECTOR INCLUDES…

PROBLEMS FACED BYTHE PRIMARY SECTOR1.Unirrigated land2.Fluctuations in income 3.Debit burden4.No job in the off season5.Compelled to sell their grains

to the local traders soon after harvest.

SOME POSSIBLE MEASURES

1.SETTING UP AGRO-BASED MILLS

2.COOPERATIVE MARKETING SOCIETIES

3.THE GOVERNMENT

4.BANKS TO PROVIDE CREDIT WITH LOW INTEREST

GDPGross Domestic Product

Sum of production in three sectors give Gross Domestic Production—GDP of the country.

It is the value of all final goods and services produced within the country during a particular year.

GDP shows how big the economy is. Measuring GDP is undertaken by the Central

government ministry , with the help of various govt. Departments of Indian states and union territories.

HISTORICAL CHANGE IN THE

SECTORS: THREE STAGES.

INITIAL STAGEAfter observing the changes that have come in the development patterns of the sectors, it has been found that- In the Initial stages of the development the

Primary Sector was the most important sector of economic activity.

- As the methods of farming changed and agricultural sector began to prosper, it produced much more food than before and many people could take-up many other activities which led to the increase in number of activities.

- However at this stage most of the goods produced were natural products from the primary sector, hence most people were employed in this sector.

SECOND STAGEOver a long time(more than hundred years or so) because new methods of manufacturing were introduced, factories came up and started expanding.- People began to work in factories in large numbers, and also people started using factory goods in large numbers as they were cheap. - Secondary sector gradually became the most important in total production and employment. There was a shift and the importance of the sectors also changed.

THIRD STAGEIn past hundred, there has been a further shift from Secondary to Tertiary sector in the developed countries.-The service sector has become the most important in terms of total production. Most of working people are also employed in the service sector.- Over thirty years b/w 1973 and 2003 production in the most, and it has emerged replacing the primary sector.

Why tertiary sector becoming so important in India ?

1. Govt. has to take responsibility for the provision of some services such as

hospitals, educational institutions, post etc.

2. The development of agriculture and industry leads to the development of

services such as transport, trade, storage.

3. Income levels rises, certain sections of people start demanding many more services like tourism, shopping etc.4. Information & Communication

Technology have become important and essential.

There could be several reasons:

DISGUISED UNEMPLOYME

NT

OPEN UNEMPLOYME

NT

TYPES OF UNEMPLOYMEN

T

DISGUISED UNEMPLOYMENT

1. It is a situation in which more people are engaged in a activity then the required one. 2. The people who are engaged appear to be employed but are not fully employed.3. If the surplus labour are removed from work, production does not suffer.

OPENUNEMPLOYMENT

1. Open unemployment means a situation when a person is unable to find any job or work.

2. Under this, the worker is ready to work, but he is unable to find any work.

3. It can occur in any sector.

NREGANational Rural Employment Guarantee Act 2005.The Central Govt. in India made a law implementing the RIGHT TO WORK in 200 districts of India.Under NREGA 2005, all those who are able to, and are in need, of work are guaranteed 100 days of employment in a year by the govt.If the govt. fails in its duty to provide employment it will give unemployment allowance to the people.

ORGANISED AND UNORGANISED

SECTOR

ORGANISED SECTOR*Terms of employment are regular, so people have assured work.*Registered by the government.*Follows rules and regulations given in various laws*Has some formal processes and procedures.

Benefits to the employers Paid leave Payment during holidays Provident fund Gratuity Medical benefits Workers get pension after retirement

Unorganised sector

Characterized by Small and scattered units which are largely outside the control of the government.

There are rules and regulations but these are not followed.

Low paid jobs and are not regular.

DISADVANTAGES TO THE EMPLOYERS

There is no provision for overtime, paid leave, holidays, leave due to sickness…..

Employment is not secureExample: farmers work on their own and hire labourers as and when they require. Some people can also be asked to leave the job .

Sectors in terms of ownership:

Public and private sectors

PUBLIC SECTOR It Organised by

government It provides facilities to

the workers like - Fixed employment , Fixed working hours.

main aim is to provide public welfare.

Examples of Public sector are - Indian Railways, hospital, parks, libraries etc.

PRIVATE SECTOR Organised by private

individuals. does not provide fixed

employment & fixed working hours to workers.

main aim is to make many profits for themselves.

examples of private sectors are Birla company , reliance etc.

QUALITIES OF PUBLIC SECTOR Job security Generous benefits More relaxed atmosphere

QUALITIES OF PRIVATE SECTOR More opportunities for promotion as

the company grows These jobs tend to pay higher More prestige, and the private

sector is supposedly more efficient Less bureaucracy

CONCLUSION As we have looked at the ways of classifying economic activities into some meaningful groups. One way of doing this is to examine whether the activity is primary, secondary or tertiary sectors. The data for India, for the last thirty years, shows that while goods and services produced in the tertiary sector contribute the most to GDP, the employment remains in the primary sector. We have also seen what all can be done for increasing employment opportunities in the country. Another classification is to consider whether people are working in organised or unorganised sectors and protection is necessary for them. We also looked at the difference between private and public activities, and the qualities of both the sectors.