CBSE Class 10 Economics Chapter 2 Notes Understanding the Lesson
1. People are engaged in various economic activities to produce goods and services. We can understand these activities by grouping or classifying these activities using some important criterion. These groups are called sectors.
2. activities are related to the primary, secondary or tertiary sectors. When we produce a good by exploiting natural resources, it is an activity of the primary sector, also known as agriculture and related sector.
3. The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. It is also called industrial sector.
4. The third category of activities falls under tertiary sector and is different from the previous two. These are activities that help in the development of the primary and secondary sectors. It is also called the service sector.
5. The various production activities in the three sectors produce a large number of goods and services. Also, the three sectors have a large number of people working in them to produce these goods and services.
6. Histories of many countries show that at initial stages of development primary sector was the most important sector of economic activity and most people were employed in this sector.
7. With the expansion of factories, those people who had earlier worked on farms now began to work in these factories in large numbers. Secondary sector thus gradually became the most important in total production and employment.
8. In the past 100 years, there has been a further shift from secondary to tertiary sector in developed countries. The service sector has become the most important in terms of total production.
9. The data for India, for the last forty years shows that while goods and services produced in the tertiary sector contribute the most to GDP, the employment remains in the primary sector mainly in agriculture.
10. It is a fact that more than half of the workers in India are working in the primary sector, but they are producing only a quarter of the GDP. In contrast to this, the secondary and tertiary sectors produce three-fourth of the produce whereas they employ less than half the people.
11. There are more people engaged in agriculture than is needed. It means workers in agricultural sector are underemployed. Even if some of them are kept out, production will not be affected.
12. Underemployment can also happen in other sectors. The casual workers in the service sector in urban areas such as painters, plumbers, etc. face the problem of underemployment. There are also people who are not employed at all.
13. In order to increase employment opportunities in the country, several measures can be taken. Industries and services can be promoted in semi-rural areas where a large number of people may be employed.
14. Tourism, regional craft industry, new services like IT can also be given due importance to generate employment opportunities.
15. The above suggestions would take a long time to implement. For a short-term, we need some quick measures. Recognizing this, the central government in India made a law implementing the ‘Right to Work’ in 200 districts of India and then extended to an additional 130 districts. The remaining districts in rural areas were brought under the act with effect from 1 April, 2008. It is called National Rural Employment Guarantee Act 2005 or NREGA 2005.
16. Another classification of economic activities is to consider whether people are working in organised or unorganised sectors.
17. Workers in the organised sector enjoy security of employment. They are expected to work only a fixed number of hours. They also get several other benefits from the employers such as paid leave, provident fund, etc.
18. Employment in the unorganised sector is not secure. People can be asked to leave without any reason. Most people are working in this sector and protection is necessary for them.
19. Economic activities can also be classified into public and private sectors. Activities in the private sector are guided by the motive to earn profits but the purpose of the public sector is not just to earn profits.
20. There are a large number of activities which are the primary responsibility of the government and the government must spend on these. For example, providing health and education facilities for all.
Sectors of Indian Economy Class 10 CBSE Notes Important Terms
Primary sector: A sector that involves agricultural activities, fishing, forestry, dairy, etc.
Secondary sector: A sector that covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity.
Tertiary sector: A sector that involves activities that help in the development of the primary and secondary sectors.
Gross Domestic Product or GDP: The sum of production in the three sectors gives what is called the Gross Domestic Product of a country.
Employment: A situation where the able-bodied persons willing to work and are engaged in some productive activity to earn the income.
Underemployment: A situation where people work at a job which is below their skill, education and capacity.
Unemployment: A situation where the able-bodied people are willing to work but are not able to get work and earn money.
Public sector: A sector in which the government owns most of the assets and provides all the services.
Private sector: A sector in which private individuals or companies own the assets and deliver services.
Organized sector: A sector where the terms of employment are regular and people have assured work.
Unorganized sector: A sector where employment is not secure.