STRUCTURE OF THE INDIAN

ECONOMY

By
Shalini Singh
Assistant Professor
School of Management
IMS Unison University
OCCUPATIONAL STRUCTURE
People earn their incomes by doing different
kinds of jobs which becomes the means of
livelihood. The distribution of working population
among different occupations or productive
activities is known as 'Occupational Structure'.

There are three types of occupations in an

economy. They are:
1. Primary sector
2. Secondary sector
3. Tertiary sector
 Primary Sector: Occupations include agriculture,
fishing, plantations, mining and allied activities.
Example: Production of food of grains and raw materials.

 Secondary sector: Occupations comprise

manufacturing operations in industries both large and
small and also include in construction activity.
Example: Capital goods, consumption goods and building
activities.

 Tertiary Sector: This sector generates occupations in

such services like in banking, commerce, communications,
computers and other professions inside as well as out side
the government.
Example: Banking, Commerce and communication
STRUCTURE OF THE INDUSTRY
The industrial structure can be classified on the
basis of
a) Type of ownership
b) Size of investment
c) Type of output.
STRUCTURE OF INDUSTRY BY TYPE OF
OWNERSHIP

According to ownership Indian industry can be

divided into three sectors.

1) The Public sectors:

Social welfare is the object of public sector. The
government, limited companies maintain and
manage some industries. This type of ownership
and managing is called public sector. Ex: Indian
Railways, Airlines, Ship Building, Iron and Steel
plants etc.
2) Private sector: Private Individuals with their
own investments establish this type of industries
ex:- Reddy's laboratory, coca-cola etc.

3) Foreign sector: Some foreigners invest large

sums in the Indian industries. Their share
holding is determined by the assets and capital of
the firm, this pattern of share holding is called
"Equity" According to Foreign Exchange
Regulation Act of 1970 any company which
allows Foreign, nations more than 40% of the
equity is treated as the foreign sector. Ex:
Multinational companies (MNC's)
STRUCTURE OF INDUSTRY BY SIZE OF
INVESTMENT
On the basis of the size of investment the
industry is classified into 3 types.

1) The large- scale sector: The industries whose

capital is more than Rs.35 lakhs.
2) The small scale sector : The industries whose
capital is between Rs 5 lakhs to Rs 35 lakhs.
3) The tiny sector: The tiny-sector units are those
with capital investment not exceeding Rs 5 lakhs.
STRUCTURE OF INDUSTRY BY TYPE OF
OUTPUT
1) Basic Industries: Basic Industries are which provide essential inputs to
all industries and agriculture Ex: Iron and steel, coal, chemicals,
fertilizers etc .
2) The capital goods Industries: These Industries produce the machinery
and equipment required for all industries and agriculture. Ex: Machine
tools, engineering goods, electrical equipment etc
3) The intermediate goods industries: This industries produce goods which
are used in the production process of other goods, rather than for final
consumption Ex: Petroleum products, tyre industry etc.
4) Consumer goods industries: These industries produce goods for final
consumption such as power products cosmetics & electronic goods, etc.
Industrial Growth: The share of industry has increased from 11.8 percent
of Gross Domestic Product in 1950-51 to 24.6% in 1990-91.
5) Services: Service sector is one more important sector of Indian industry.
It indicates the direction of modernisation of our country Ex: Transport
and communications, financial institutions, banking and insurance and
public administration etc;