economics(x)-lesson-2
SECTORS OF THE INDIAN
ECONOMY
(lesson NOTES)
_______________________________________________________________________________
v INTRODUCTION
Ø
The economy
of any country is to be understood well when we read its components or sectors. Sectoral
classification can be done on the basis of several criteria. In this lesson we
discuss above these various criteria.
v CLASSIFICATION OF SECTORS OF INDIAN ECONOMY
Ø 1.PRIMARY SECTOR
§
The sectors in which the things are produce by exploiting the natural resources are
called as primary sector.
§
It forms the base for all other products that we subsequently make.
§
Since most of the natural products we get are from agriculture, dairy,
fishing, forestry, this sector is also called agriculture and related
sector.
Ø
2. SECONDARY SECTOR
§ The sector which covers the activities
in which natural products are changed into other forms by manufacturing are included in
secondary sector.
§ The sector increases the value of
natural product.
§ This
sector associated with the different kinds of industries it is also called as industrial sector.
§ For example, using cotton fibre
from the plant, we spin yarn and weave cloth. Using sugarcane as a raw material,
we make sugar
or gur
Ø
TERTIARY SECTOR
§ The sector which is not
associated with the production is called as tertiary sector.
§ It includes all the activities
which only provide the help and service in the development of the primary and
secondary sector.
§ It provides all the service so it
is also called as service sector.
§ Transport, storage, communication, banking, trade are some
examples of tertiary activities
§ Service sector also includes some
essential services that may not directly help in the production of goods. For
example teachers, doctors, washer men, barbers, cobblers, lawyers, administrators
and accountants etc.
v
INTERDEPENDENT OF THREE SECTORS
Ø For the economy of the country all the sectors are important. These sectors
are highly interdependent on each other sector.
Ø The primary sectors produced the raw material for secondary sectors. For
example provide cotton to make shirts.
Ø The secondary sectors provide the machines and fertilizers to increase the
production of primary sector. For example provide tractor to the farmers.
Ø The service sector proved the service to both primary and secondary sector.
For example-transport, banking etc.
v GROSS DOMESTIC PRODUCT
Ø The value of final goods and services produced by all sectors
during a particular year in
a country is called GDP or gross domestic product.
Ø The intermediate goods are
those things which help only to produced the final goods. For example wheat is
used to make biscuit. To calculate the GDP we should take the value of only
final goods.
Ø In India, the task of
measuring GDP is undertaken by a central government ministry (Central
Statistics Office) with the help of various government departments.
v HISTORICAL CHANGES IN THE SECTORS
Ø When we notice the developed
countries we see that at the initially stage of development primary sectors was
the most important sector.
Ø With the due course of
time when agriculture developed many people start to do various activities so
secondary and service sector also developed.
Ø Now days the service
sector has become the most important
in terms of total production and
even in employment in the world.
v status of employment and production in the
sectors in india
Ø In 1973 the share of
primary sector in GDP was more. But in 2016 the share of service sector is more
nearly 60% of GDP.
Ø But in the employment the
data is almost same in 1973 and 2016 as even today also the primary sector provide
more jobs in India.
Ø The share of primary
sector in GDP is reduced so much but in employment it did not decline as much.
v RISING IMPORTANCE OF THE TERTIARY
SECTOR IN PRODUCTION
Ø In the recent years the tertiary sector has emerged
as the largest producing sector in India due to these reasons-
§ First, in any country several services such as
hospitals, educational institutions, post and telegraph services, police
stations, courts, village administrative offices, municipal corporations,
defence, transport, banks, insurance companies, etc. are required.
§ Second, the development of agriculture and industry
leads to the development of services such as transport, trade, storage etc.
§ Third, as income levels rise, certain sections of
people start demanding many more services like eating out, tourism, shopping,
private hospitals, private schools, professional training etc.
§ Fourth, over the past decade or so, certain new
services such as those based on information and communication technology have
become important and essential. The production of these services has been
rising rapidly.
v
UNEMPLOYMENT
Ø
The situation
in which more people are willing to do the work but they are unable to find the
work is called as unemployment. The person who is unable to find work is called
as unemployed. there are different type of unemployment found in India.
Ø
Types of unemployment
§
Disguised unemployment/ Underemployment-
·
The
situation where people are apparently working but all of them are made to
work less than their potential.
·
This kind of underemployment is
hidden in contrast to someone who does not have a job
·
It is mostly
found in agriculture sector.
§ Seasonal unemployment.
·
When the
person is not able to find the job for complete year. it means he get the work
only in specific seasons. For example the agriculture labours don’t get the
work in some months.
§ Educated unemployment
·
When persons
have the qualification and complete education but he didn’t find the job
according to his capacity is called as educated unemployment. It is increasing
day by day in our country. Due to this one the human resource becomes liability
for the nations.
v
CREATING MORE EMPLOYMENT
Ø Along with water, we also need to
provide cheap agricultural credit to the farmers for farming to improve.
Ø To locate some agro based industries
and services in semi-rural areas where a large number of people may be
employed.
Ø Opening a cold storage could give
an opportunity for farmers to store their products like potatoes and onions .
Ø In villages near forest areas, we
can start honey collection centres where farmers can come and sell wild honey.
Ø This will provide employment in
industries located in semi-rural areas and not necessarily in large urban centers.
Ø By improving the tourism sector every
year we can give additional employment to more than 35 lakh people.
v
MGNREGA 2005
Ø The central government of India made a law
implementing the Right to Work in all
districts of India.
Ø It is called Mahatma
Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA 2005).
Ø Under MGNREGA 2005, all those who are able to, and are in
need of, work in rural areas are guaranteed 100 days of employment in a year by
the government.
Ø In MNREGA 1/3 jobs are reserved
for women.
Ø If the government fails in its duty to provide employment,
it will give unemployment allowances to the people.
v SECTORS ON THE BASIS OF
WORKING CONDITION
Ø
ORGANISED SECTOR
§ The sector which has some formal
processes and procedures and registered by the government is called as
organized sector.
§ In this sector the terms of
employment are regular and permanent.
§ They completely follow the
government rules as Factories Act, Minimum Wages Act, Payment of Gratuity Act,
Shops and Establishments Act etc.
§ The workers in this sector are
expected to work only a fixed number of hours. If they work more, they have to
be paid overtime by the employer.
§ They also get several other
benefits from the employers. as paid leave, payment during holidays, provident
fund, gratuity etc.
Ø
UNORGANISED SECTOR
§ The sector is characterised by
small and scattered units which are largely outside the control of the
government are
unorganized sectors.
§ There are rules and regulations but these are not followed.
§ Jobs here are low-paid and often not regular.
§ There is no provision for overtime, paid leave, holidays,
leave due to sickness etc.
§ Employment is not secure. People can be asked to leave
without any reason
§
This
sector includes a large number of people who are employed on their own doing
small jobs such as selling on the street or doing repair work and agriculture.
Ø
HOW TO PROTECT WORKERS IN THE UNORGANISED SECTOR
§ In the rural areas, the
unorganised sector mostly comprises of landless agricultural labourers, small
and marginal farmers, sharecroppers and artisans (such as weavers, blacksmiths,
carpenters and goldsmiths)
§ In the urban areas, unorganised
sector comprises mainly of workers in small-scale industry, casual workers in
construction, trade and transport etc., and those who work as street vendors,
head load workers, garment makers, rag pickers etc. For the protection these decision
can be taken-
§ The government rules must follow in the unorganised
sectors also.
§ The government should provide the
credit facility to the workers of unorganised sectors at cheap rate.
§ The government must care the
scheduled caste and backward class people in the unorganized sectors for their
dignity.
v SECTORS IN TERMS OF
OWNERSHIP:
Ø PUBLIC SECTOR
§ The sector which is owned and operated by
the government is referred as public sector.
§ This sector is not profit
oriented. It may work to provide the service to people at lower or free of cost.
§ Railways or post office, BSNL,
Air India, BPCL, IOC, BHEL etc are the example of the public sector
Ø
2. PRIVATE SECTOR
§ The sector, which is own and operated by private individuals or companies is known as private sector.
§ The motive of this sector is to
earn profit only.
§ Companies like Tata Iron and
Steel Company Limited (TISCO) or Reliance Industries Limited (RIL), Wipro,
Reebok etc. are privately owned.
v NEED OF PUBLIC SECTOR
Ø
There are many essential services which have to provide to the citizens so
the public sector is needed.
Ø
The government collect the taxes from the people so it is the
responsibility of the government to provide electricity, water etc to the
people.
Ø
If the private sectors start to provide the essential service they may
increase the price which is not affordable for poor people.
Ø
The large scale investment is done by public sector only.
Ø
The public sector boost up the private sector by providing the
infrastructure as roads, light, drainage etc.
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