CHAPTER 2- SECTORS OF THE INDIAN ECONOMY (ECONOMICS CLASS 10)

1.The sectors of Indian economy are inter-dependent on each other-elaborate.

The secondary sector relies on the primary sector for its raw materials and the tertiary sector to transport and sell its finished products. The tertiary sector relies on the primary and secondary sectors for a product to sell and for income from business. They all rely on each other they are interdependent.

2. Define the term capital resource.

Capital resources include money to start a new business, tools, buildings, machinery, and any other goods people make to produce goods and provide services.

3.EXAMPLES OF PRIMARY SECTOR.

The primary sector includes all those activities the end purpose of which consists in exploiting natural resources: agriculture, fishing, forestry, mining, deposits.

4. EXAMPLES OF SECONDARY SECTOR.

Examples include textile production, car manufacturing, and handicraft. Manufacturing is an important activity in promoting economic growth and development.

5.EXAMPLES OF TETIARY SECTOR

Transport, storage, communication, banking, trade are some examples of tertiary activities. Since these activities generate services rather than goods, the tertiary sector is also called the service sector.

6. What is GDP?

The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year. And the sum of production in the three sectors gives what is called the Gross Domestic Product (GDP) of a country. It is the value of all final goods and services produced within a country during a particular year. GDP shows how big the economy is. 

7. What is included in GDP?

The GDP calculation accounts for spending on both exports and imports. Thus, a country's GDP is the total of consumer spending (C) plus business investment (I) and government spending (G), plus net exports, which is total exports minus total imports (X – M). As per commerce ministry data, service sector contributes 60% to India's GDP and 70% to Karnataka's GDP.

8. What is the share of primary sector in GDP and employment?

To understand the economy better scholars like Colin Clark (1940) and Fisher (1935) have divided the economy into three sectors - primary sector, secondary sector and tertiary sector. The primary sector is an economic description, concerned with the extraction of raw materials. It includes fishing, farming and mining. Amongst the primary sector, agriculture is the predominant occupation and has the largest share in national income. Despite employing 51% of the workforce, agriculture and allied activities produces just 18.75% of the national GDP, indicating a poor usage of the available workforce and a failure of modernisation of agriculture and other activities allied to it. 

9. Revolutions in Primary Sectors
India has always been an agro-based economy. The primary sector in India contributes to 16.95% of our GDP. India is world leader in production of milk and is the second largest producer of wheat, sugar, freshwater fishes and groundnuts. It is a major producer of tea, cashew, sugar, ginger, turmeric and black pepper The Indian agricultural sector achieved this remarkable feat because of several simultaneous revolutions that were initiated by the government of India.

Green Revolution : This increased the agriculture yields due the use of high-yielding varieties of seeds, modifying farm equipment, and substantially increase in use of chemical fertilisers. The revolution in India is traced to 1967/68 with major focus on Wheat, which was later extended to other crops. This took India towards fuelling wheat self-sufficiency. 

White Revolution: Operation Flood (1970) popularly known as white revolution was aimed at increasing milk production. This made India a leader in milk production surpassing USA. National Dairy Development Board (NDDB) realised this by organising dairy development through co- operative societies. 

Blue Revolution: Blue Revolution aimed at increase in the production of fish and marine products. The Blue Revolution in India was started in 1970 during the Fifth Five- Year Plan when the Central Government sponsored the Fish Farmers Development Agency (FFDA). Subsequently, the Brakish Water Fish Farms Development Agency was set up to develop aquaculture. The Blue Revolution has brought improvement in aquaculture by adopting new techniques of fish breeding, fish rearing, fish marketing, and fish export. 

Silver Revolution: The silver revolution refers to the period in which the production of eggs was tremendously increased; it was done by the help of medical science and more protein rich food for the hens. At present, more than three million people are directly or indirectly employed in poultry farming. 

Yellow Revolution: The yellow revolution refers to increased output in oil seeds. The growth, development and adoption of new varieties of oilseeds and complementary technologies nearly doubled oilseeds production from 12.6 metric ton in 1987-88 to 24.4 metric ton in 1996-97, catalysed by technology brought about the Yellow Revolution. 

Red Revolution: Red Revolution is a term used to denote the technological revolutions in meat and tomato Production. 

Pink Revolution: Refers to increased production in onion, prawn and pharmaceuticals. The pink revolution in recent times also refers to the meat and poultry-processing sector of India. 

Other important revolutions related to primary sector in India are; 

Black Revolution - Petroleum Production

Brown Revolution - Leather/non-conventional/Cocoa production

Golden Fiber Revolution - Jute Production

Golden Revolution - Fruits/Overall Horticulture development/ Honey Production

Grey Revolution - Fertiliser

Round Revolution – Potato

Silver Fiber Revolution – Cotton 

10. Organised Sector: This sector covers those places or enterprises of work where the terms of employment are regular and which are registered by the government policies. Unorganised Sector: This sector is characterised by scattered and small units which are largely outside the control of the government.

11. Another way of classifying economic activities into sectors could be on the basis of who owns assets and is responsible for the delivery of services. In the public sector, the government owns most of the assets and provides all the services. In the private sector, ownership of assets and delivery of services is in the hands of private individuals or companies. Railways or post office is an example of the public sector whereas companies like Tata Iron and Steel Company Limited (TISCO) or Reliance Industries Limited (RIL) are privately owned.
12. Disguised unemployment refers to a kind of employment where people engaged in a work more than requirement. It is also known as hidden unemployment because we can’t see the people employed here are more than required. The situation of disguised unemployment basically arises when more and more people start working at the place where there is less need of more workers.
For example: It can be observed in the rural areas where all the members of a family of a farmer are working in a farm where only 3 members are required but 6 members are working in that field which means the other 3 person working in that farm are unemployed which will be categorized under disguised unemployment. The reason behind their working in the same farm is lack of jobs in urban areas as well as in rural areas. In urban areas also disguised unemployment can be seen in the service sectors.
13. NREGAs 2005 was passed in September 2005. (ii)The act provides 100 days assured employment to every rural household in 200 districts. (iii)The central government will also establish National Employment Guarantee funds. (iv)Later, the scheme will be extended to 600 districts.