SECTOR OF INDIAN

ECONOMY

Sectors of the Indian Economy Economic

activities are activities that result in the

production of goods and services. Sectors are
group of economic activities classified on the
basis of some criteria. Three types of
classification are:

1. Classification of economics activities on the

basis of nature of activity Primary Sector

Secondary sector Tertiary sector
2. Classification of economics activities on the

basis of conditions of work Organised sector

Unorganised sector
3. Classification of economic activities on the

basis of ownership of assets Public sector

(governments control) Private sector
(controlled by individual or group of
individuals) DIFFERENCES BETWEEN PRIMARY
SECONDARY AND TERTIARY SECTORS Primary
Sector Secondary Sector Tertiary Sector

 primary, secondary & tertiary sectors Why the primary sector

is called so? This is because it forms the base for all other
products that we subsequently make. Why the secondary
sector is called so? This is because it is the second step after
primary. It includes activities in which natural product are
changed into other forms through manufacturing that is
associated with industrial activity. Does the tertiary sector
include only these services that help in the production of
goods? No. The Tertiary sector also includes some essential
services that may not help directly in the production of goods.
It includes some personal service providers like washer men,
barbers, cobblers, maids etc. & teachers, doctors etc.

employment is hidden in contrast to someone

who does not have a job and is clearly visible

as unemployed. Hence, it is known as
disguised unemployment too. In unban areas
there are casual workers in the services sector
who work for daily employment such as
painters, plumbers, repair persons and other
doing odd jobs. They may spend the whole
day but earn very little. Thus, there is
disguised unemployment both in rural and
urban areas.

HOW TO CREATE MORE

EMPLOYMENT
The following steps can be taken to remove disguised unemployment in the

agriculture.
(i) Loans should be provided to small farmers by the government or bank to

have more irrigation facilities like wells and tube-wells in order to enable
them to grow second crop.
(ii) New dams and canals should be constructed. This will lead to more

employment in the agricultural sector.

(iii) Transportation and storage facilities must be improved to provide

productive employment to not only the farmers but also others in services
like transport and trade.
(iv) Banks should provide agricultural credit to the farmers for farming to

improve.

 (v) Industries such as dal mill, cold storage, honey collection

centres, processing of vegetables should be set up in rural

or semi-rural areas. Such industries will get raw materials
from the rural areas and will create more employment
opportunities for the rural people.
(vi) School should be opened in rural areas. This will provide

jobs to about 20 lakh people in the educational sector.

(vii) Health services should be improved by opening

dispensaries and hospitals. This will create jobs for doctors,

nurses and other staff. (viii) Tourism, regional craft industry
or Information Technology should be encouraged by the
government to create more employment opportunities.
(ix) As a short term measure, the government has

implemented the Right to Work in 200 district of India.

Differentiate between public sector

and private sector.
Public Sector Private Sector
(1) In the Public Sector the govt. own most of
the assets and provides all the services.
(2) The motive in the welfare of the people

through provision of basic services.

(3)

Provides those services which they feel are

necessary for people of the region. Ex.
Railway, post office.

(1) In the private sector, ownership of assets

delivery of services is in the hands of private

individuals or companies
(2) The main motive in private sector is profit

motive. They only invest in those areas when

profit margin is maximum.
(3) Only provides those goods & services

which yield quick return. Ex. Reliance India.

Limited. Tata Iron & Steel company.