SECTORS OF THE

INDIAN ECONOMY
DONE BY SHREEYA AND ASHLYN
I. Fill in the blanks:
1. ________ sector has low pay and unsecured jobs.
Answer: unorganized
2. Workers in the _________ sector do not produce goods.
Answer: tertiary
3. Most of the workers in the _________ sector enjoy job
security.
Answer: organized
4. A large proportion of __________ in India are working in the
unorganized sector.
Answer: laborers
5. Cotton is a _________ product and cloth is a _________
product.
Answer: natural and manufactured
6. The activities in primary, secondary and tertiary sectors are
_________
Answer: interdependent
7. When a person is willing to do a job at the prevailing
wage rate but fails to get a job is called _______
Answer: Unemployment
8. India is in the _____ position in terms of farm output.
Answer: second
9. ______ sector is also known as the industrial sector.
Answer: Secondary
10. All goods which are meant either for consumption by
consumers or for investment by firms are called ________
Answer: Final goods
11. The economic activities are connected with the extraction and
production of natural resources in the ________ sector.
Answer: Primary
12. ________ sector contributes almost 55% to the country’s
GDP.
Answer: Service/tertiary
13. Getting a job for a particular season/period of the year and
remaining unemployed for the rest of the year is called ________
unemployment.
Answer: Seasonal
14. ________ sector organizations are owned and controlled, by the
government.
Answers: Public
15. _______ sector organizations are owned and controlled by
individuals or groups.
Answer: Private
II. Choose the most appropriate answer.
1. The sectors are classified into public and private
sectors on the basis of:
a) Employment conditions
b) The nature of the economic activity
c) Ownership of enterprises
d) Number of workers employed in the enterprise
Answer: c) Ownership of enterprises
2. Production of a commodity, mostly
through the natural process, is an activity in
_________ sector.
a) Primary
b) Secondary
c) Tertiary
d) Information technology
Answer: a) Primary
3. GDP is the total value of _________
produced during a particular year.
a) Goods and services
b) All final goods and services
c) All intermediate goods and services
d) Intermediate and final goods and services
Answer: b) All final goods and services
4. Extraction of raw materials is the activity of
_____sector.
a) Primary
b) Secondary
c) Tertiary
d) All of these
Answer: a) Primary
5. What is under employment?
a) Where everyone is working
b) No one is fully employed
c) Made to work less than their potential
d) All of the above
Answer: d) All of the above
6. Which one of the following activities
comes under the tertiary sector?
a) Agriculture
b) Dairy
c) Fishing
d) Banking
Answer: d) Banking
1) What are final goods and intermediate goods?
Final goods are referred to as those goods which do not require
further processing. These goods are also known as consumer goods
and are produced for the purpose of direct consumption by the end
consumer. Intermediate goods are referred to as those goods that are
used by businesses in producing goods or services.

2) What is GDP?
The sum of production the three sectors give is called the gross
domestic product of a country. It is the value of all final goods and
services produced within a country during a particular year.
3) How is GDP calculated in India?
In India, the mammoth task of measuring GDP is undertaken by a central
government ministry. This Ministry, with the help of various government
departments of all the Indian states and union territories, collects information
relating to the total volume of goods and services and their prices and then
estimates the GDP.

4) Explain the main objectives of the national rural employment guarantee act 2005.
 To implement the right to work in 200 districts of India.
 To guarantee 100 days of employment in a year by the government. In case the
government fails, it offers an unemployment allowance.
 To give preference to the type of work that will help increase the production from
the land.
5) Compare the 3 sectors of the Indian economy on the basis of the
supply of employment in the last 40 years.
 A remarkable fact about India is that while there has been a
change in the share of the 3 sectors in GDP a similar shift has not
taken place in employment. The primary sector continues to be the
largest employer.
 It is because not enough jobs were created in secondary and
tertiary sectors. Even though industrial output or the production of
goods went u by around 3 times.
 The same applies to the tertiary sector as well. While production in
the service sector rose more than 14 times employment in the
service sector rose around 5 times
6) Explain the meaning of the primary sector. Why is it called agriculture and
related sectors?
 When the activities are based directly on natural resources, it is known as the
primary sector.
 It is called the primary sector because 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, and
forestry this sector is also called agriculture and related sector.
7)Why is protection and support to workers of unorganized necessary?
 The jobs in the unorganized sector pay very low salaries. they are often exploited
and not paid a fair wage. Their earnings are low and not regular.
 These jobs are not secured and have no other benefits.
 Besides the irregular and low-paid work they also face social discrimination.
8) Explain the meaning of the secondary sector with examples.
Why is it also called the industrial sector?
 The secondary sector covers activities in which natural
products are changed into other forms through ways of
manufacturing that we associate with industrial activity.
 For example using cotton fiber from the plant we spin yarn and
weave cloth. Using sugarcane as raw material we make sugar or
gur
 Since this sector gradually became associated with the different
kinds of industries that came up it is also called the industrial
sector.
9) Explain the meaning of the tertiary sector with examples. Why is it
called the service sector?
 These are activities that help in the development of the primary and
secondary sectors.
 For example, goods that are produced in the primary or secondary
sector would need to be transported by trucks or trains and then
sold in wholesale and retail shops.
 Since these activities generate services more than goods the tertiary
sector is also called the service sector. The service sector also
includes some essential services that may not directly help in the
production of goods such as doctors, teachers, lawyers, etc.