X: SUBJECT: SOCIAL SCIENCE

CHAPTER: 2: SECTORS OF THE INDIAN ECONOMY

Q.1Explain the classification of sectors on the basis of Nature of activity.

Why is Ans. An economy can be classified into the following sectors on the basis of nature of activity.
Primary 1. Primary Sector
sector
called
i) When we produce a good by exploiting natural resources (land, water), it is called an activity
agricultur of Primary Sector.
e ii) It is called Primary because it forms the base for all other products that we subsequently make.
and
related iii) It is also called agriculture and related sector because most of the natural products are from
Sector? agriculture eg, farming, dairy, fishing, forestry etc.
2. Secondary Sector
Why is
secondary i) This sector covers activities in which primary products are processed and transformed into
sector goods or products of higher value.
called as
Industrial
ii) It can be done manually or by machines. Since this sector is mostly associated with different
sector? kinds of industries, it is also called as industrial sector. For eg. sugar from sugarcane, cloth from
cotton etc.
3.Tertiary Sector
Why is 1) Activities which provide services to the primary and the secondary sectors are called tertiary
tertiary
sector
activities.
called as ii)They aid or support the production process.
service It is also called service sector since it generates services rather than goods, e.g. banking, transport,
sector?
storage, communication, trade.

Q.2 Do you think the classification of economic activities into primary, secondary and tertiary is
useful? Explain how.
Ans. i) The classification of economic activities into primary, secondary and tertiary is useful on
account of the information it provides on how and where the people of a country are employed.
ii) It helps us to know the contribution of each sector to the of countries GDP and per capita income.
iii)It gives us the real picture of the pace of development that is taking place in the three sectors of
economy.
iv) It would enable us to know about the employment scenario in each sector of economy and would
enable us to train our manpower according to the requirements of each sector of economy.
v) In the process of economic growth, we can identify the problems of each sector of economy and
thereby take necessary remedial measures.

Q.3 Students in a school are often classified into primary and secondary or junior and senior. What
is the criterion that is used? Do you think this is a useful classification? Discuss.
Ans.
i)Students in a school are classified into primary and secondary or junior and senior categories on
the basis of their age, physical strength, their aptitudes etc.
ii)This classification is quite useful as their talent is built by stages.
iii) In primary classes they are made familiar with their surroundings and basic things of life such
as the relief features of a country, climatic conditions, local etc.
iv) In secondary or senior classes, they are made familiar with the happenings that are taking place
in the world, international trade, political set up of various countries etc.
Thus, this is a useful classification.
 Q.4 How do we calculate total production of the sectors for a particular year?
OR
How do we count the various goods and services produced in the three sectors? Explain with the
help of examples.
Ans. Economists suggest that the values of goods and services should be calculated rather than
adding up the actual numbers.
For example, if 10,000 kgs of wheat is sold at Rs.8 per kg, the value of wheat will be Rs.80,000.
Similarly, the value of 5,000 coconuts at Rs.10 per coconut will be 50,000. In this way the value of
goods and services in the three sectors are calculated and then added up.

Q.5 What is GDP? How is it calculated?

Ans. GDP means Gross Domestic Product. It is the value of all final goods and services produced
within a country during a particular year. It shows the size of the economy.
Q.6 What does the history of developed countries indicate about the shift that has taken place
between sectors?
Ans. In most of the developed countries, at the initial stage, the primary sector was the most
important sector of economic activity.
i) With improvement in agricultural techniques, the primary sector prospered and produced more
Which food than before. Many people could now take up other activities. Buying and selling activities
sector
employs increased many times.
most of ii) With the introduction of new methods of manufacturing, factories came up and started expanding.
the People shifted from farms to factories in large numbers. Secondary sector gradually became the
people
now a most important in total production and employment. Hence, with time, the shift from Primary to
days? Secondary sector took place
iii) In the past 100 years there has been a further shift from secondary to tertiary sector. Most of the
working people are engaged in the services. Therefore, it became important in terms of total
production.

Q.7 Why is the tertiary sector becoming so important in India?

OR
'The tertiary sector has become the largest producer in India in the last 40 years',Explain.
Ans.
1.In any country several services such as hospitals, educational institutions, post and telegraph
services, police stations, courts, municipal corporations, defence, transport, banks etc. are needed.
These can be considered as basic services. In a developing country the government has to take
responsibility for the provision of these services.
2.The development of agriculture and industry leads to the development of services such as
transport, trade, storage etc. Greater the development of the primary and secondary sectors, more
would be the demand for such services.
3. 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.
4.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.

Q.8 Service sector in India employs different kinds of people. Who are these different types?
OR
'Only a part of the service sector is growing in importance', Justify.
Ans. In India, the tertiary or service sector provides employment to different types of people. These
are:
1. There are services that employ highly skilled and educated workers.
2. On the other hand, there are a very large number of workers engaged in services such as small
shopkeepers, repair persons, transport persons etc.
3. These people barely manage to earn a living and have to perform these services because no
alternative opportunities of work are available to them.

Q.9 Has India experienced a similar shift between sectors like in developed countries?
OR
Has the desired shift taken place between sectors in India like the developed countries?
Ans.
1.Similar to the developed countries, a shift from primary sector to the tertiary sector was desired.
This has not taken place.
2.While there has been a change in the share of the three sectors in GDP, a similar shift has not
taken place in employment.
3. The Primary sector continues to be the largest employer.
4. The production of goods went up by more than nine times (1973-74 to 2013-14), employment in
the secondary sector went up by around three times. In the tertiary sector also the production rose
by 14 times, but employment rose by five times.

Q.10 How is the tertiary sector different from other sectors? Illustrate with a few examples.
Ans.
1. The tertiary sector is different from other two sectors. This is because the other two sectors
produce goods but this sector does not produce goods by itself.
2.The activities under this sector help in the development of the Primary and Secondary sectors.
3. These activities are an aid or support for the production process. For example, transport,
communication, storage, banking, insurance, trade activities etc.

Q.11 'Tertiary Sector is not playing any significant role in the development of Indian Economy.’ Do
you agree? Give reasons in support of your answer.
Ans. Tertiary Sector is playing a significant role in the development of the Indian economy.
Following are the reasons in support of the answer :-
i) India is a developing country. With the adoption of New Economic Policy (NEP) in 1991
Globalisation and Liberalisation has welcomed the MNCs and foreign investment.
ii) Due to the change in the economic policies, tertiary sector is growing in India.Basic amenities
like education, health care services, administrative works and services related with IT, ATM booths,
call centres etc. provide employment to educated Indians.
iii). The tertiary sector has increased efficiency of the people by providing necessary information
and knowledge.

Q.12 Distinguish between Open unemployment and Disguised unemployment.

Ans.
i). Under open unemployment, someone does not have a job and is clearly visible as unemployed.
ii). While under disguised unemployment, more number of people are employed than required. The
person is working but is made to work less than his potential as the labour gets divided.
This kind of underemployment is hidden in contrast to open unemployment. Hence, it is called
disguised unemployment.

Q.13 Suggest ways to create more employment in rural areas.

Ans. i) Provision of cheap agricultural credit to small farmers. This will enable them to have more
irrigation facilities like wells and tubewells and enable them to grow a second crop.
ii) Dams and canals should be constructed. This will lead to more employment in the agricultural
sector.
iii)Government should invest money in transportation and storage of crops to provide productive
employment not only to farmers but also others in service like transport and trade. Industries such
as dal mill, cold storage, honey collection centres, processing of vegetables should be set up in rural
or semi-rural areas.
iv) Schools should be opened in rural areas.
v) Health services should be improved in rural areas by opening dispensaries and hospitals. This
will create jobs for doctors, nurses and other staff.
vii) Tourism, regional craft industry or information technology should be encouraged by the
government.

Q.14 In what ways can employment be increased in Urban areas?

Ans. Employment in urban areas can be increased in the following ways: -
1. Starting new industries
2.Promoting tourism, regional craft etc.
3. Providing loans to people at reasonable rate to create employment for themselves.
4. Introducing different development activities i.e.,construction of residential accommodations,
commercial complexes, dams, infrastructure etc.

Q.15 Write a brief note on MGNREGA - 2005.

Ans.
i)All those who are able to and are in need of work have been guaranteed 100 days of employment
in a year by the government under MGNREGA - 2005.
2.If the govt.fails to provide employment, it gives unemployment allowance to the people.
3.Thus, right to work has been made legal under this act. The types of work that would in future
help to increase production from land in future would be given preference under the Act.

Q.16 How would income and employment increase if farmers are provided with irrigation and
marketing facilities?
Ans. If farmers are provided with irrigation and marketing facilities income and employment would
increase in the following manner:
i) Farmers would be able to grow a second crop. As a consequence, farmers will be able to employ
one or two more members of the family in their own fields.
ii.) If canals are dug for irrigation that would lead to a lot of employment generation.
iii) If farmers produce more they may be required to transport their products to a nearby town.

Q.17 Classify sectors on the basis of employment conditions.

OR
Compare the employment conditions prevailing in organized and unorganized sectors.
 BASIS ORGANISED SECTOR UNORGANISED
SECTOR
Place of work They are registered with the It consists of small and
government and have to follow rules scattered units which are not
and regulations laid down by the registered with the
government. government.

Terms of They are regular and therefore Terms and conditions of

employment people have assured work. employment are uncertain.

Work hours Employees have fixed hours of The working hours are not
working. If they work more they are pre-fixed and workers are not
paid overtime allowances by the paid overtime.
employer

Salary Workers/employees get their The pay or wage may be

salary/wages regularly at the end of given after two or three
the month. months.

Benefits The worker gets gratuity, bonus, They do not get these
provident fund, medical and other benefits.
allowances set by the government.
Paid leave Sunday is a paid leave or holiday. There is no paid holiday.

Appointment letter It is given to the employees and it No such document is given to

states the terms and conditions of the employee.
employment.

Social The workers from scheduled caste, They face discrimination.

discrimination tribes and backward communities are
not discriminated.

Q.18 ‘There is a need for protection and support of the workers in the unorganised sector.’ Who are
these vulnerable people who need protection?
Ans.
1.Rural Areas- Landless agricultural labourers, small and marginal farmers, sharecroppers and
artisans (such as weavers, blacksmiths, carpenters and goldsmiths).
II. Urban Areas - 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.
III. Majority of workers from scheduled castes, tribes and backward communities work in the
unorganised sector.
Q.19 How can the unorganised sector workers be protected?
Ans. The unorganized sector workers can be protected in the following ways:-
i)The farmers need to be supported through adequate facility for timely delivery of seeds,
agricultural inputs, credit, storage facilities and marketing outlets.
ii) The government also needs to support small-scale industry for procuring raw material and
marketing of output.
iii)The casual workers in both rural and urban areas need to be protected. The government should
ensure the strict implementation of laws to protect these workers.
Q.20 The workers in the unorganized sector need protection on the following issues: wages, safety
and health'. Explain with examples.
Ans. The workers in the unorganized sector need protection on the following issues:
Wages
• The workers should be paid reasonable and fair wages according to the nature of the work they
are engaged in.
• They should be given increments and allowances at par with the public sector workers.
• Sundays and holidays should be made paid holidays.
Safety
• All safety measures should be adopted at the workplace, especially where the workers are made
to work on machines which are hard to operate.
• Industrial units must be equipped with safety devices and workers should be trained to handle
them at the time of emergency.
• All big industrial units must have their dispensaries and regular health staff.
• All industrial units must arrange for a periodical physical check-up of their workers.
• Free medical bills should be reimbursed by the factories or industrial units.

Q.21 Do you agree that agriculture is an unorganised sector activity?

Ans. Yes, agriculture is an unorganised sector activity.
i) It consists of small and large land holdings that are scattered and are owned by millions of small
and marginal farmers.
ii) They are not bound to get registered under the government.
iii)They are not bound to maintain any book of accounts.
iv)There are no rules or regulations governing their behaviour.

Q.22 Compare and contrast the activities and functions of private and public sectors.
OR
Classify sectors in an economy on the basis of ownership.
Basis Public Sector Private Sector

Ownership Ownership of assets and It is in the hands of few

delivery of services is in the individuals or companies.
hands of government.

Purpose The main purpose of public Activities are guided by the

sector activities is maximum motive to earn profits.
social welfare.

Finance Government raises money People pay money to

through taxes and other ways individuals and companies to
to provide services to the get services.
people.

Examples Railways,Post Modi Tyres, Bajaj Scooter,

Offices,Nationalised Tata Iron and Steel Company
Banks,Oil India Ltd(OIL) Ltd. (TISCO), Reliance
Q.23 Explain how public sector contributes to the economic development of a nation.
Ans. The public sector contributes to the economic development of a nation in the following ways:-
i) The government earns a good amount of revenue through taxes and other ways and meet expenses
on the services rendered by it to the society. For eg. Fair price shops, compulsory elementary
education etc.
(ii) The govt. runs shipping, railways, 'aeroplanes, metro and local trains. They help in promoting
all the economic activities and industries.
iii) Govt. opens post-offices, telegraph offices, educational institutions, hospitals, water supply etc.
which help directly or indirectly in enhancing the economic development of a nation.

Q.24 With the help of examples of public sector activities, explain why the government has
undertaken them.
Ans.
(i) The main aim of Govt. is to provide maximum benefit to all sections of the economy.
(ii) Therefore, all the important activities which concern larger sections of the society have been
taken up by the Govt..
(iii) These activities also involve huge expenditure which cannot be incurred by the private sector.
The government takes up these activities to provide services to the people at reasonable prices.
(iv)Few examples of public sector activities are:-

a) Railways b). Post and Telegraph Office

c) Defence Services d ) Life Insurance of India
e) MTNL f) Construction of Roads