Key Concepts
- 1What are primary, secondary, and tertiary sectors? Why is tertiary sector growing in India?
Important Formulas & Facts
Primary: Agriculture, mining, fishing — extract from nature. Secondary: Manufacturing, construction — transform raw materials. Tertiary: Services — banking, transport, IT, education, healthcare. Tertiary growth reasons: (1) Basic services needed — transport, hospitals, schools. (2) Agriculture and industry need services — banking, insurance. (3) IT revolution — India became global IT hub. (4) Rising income → more demand for services (tourism, dining). (5) Urbanisation. (6) Government push for service sector. Tertiary contributes 54% of India's GDP but employs only 32% of workforce — indicating underemployment in primary sector.
Must-Know Questions
Q1What are the three sectors of the economy? Give examples.
1. Primary sector — activities directly using natural resources: agriculture, fishing, mining, forestry. Also called agriculture sector. 2. Secondary sector — manufacturing and construction: factories, steel production, textile mills. Also called industrial sector. 3. Tertiary sector — services: banking, transport, IT, healthcare, education, trade. Also called service sector. In India, the tertiary sector contributes the most to GDP (~55%), but the primary sector employs the most people (~43%).
Q2What is disguised unemployment?
Disguised unemployment occurs when more people are engaged in a job than actually needed. Even if some workers are removed, production remains the same. Common in Indian agriculture — a family of 5 working on a small farm where 3 would be enough. The extra 2 are disguisedly unemployed — they appear employed but contribute nothing to output.
Q3Why is NREGA important for employment generation?
MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act, 2005): (1) Guarantees 100 days of employment per year to every rural household. (2) If government cannot provide employment within 15 days, unemployment allowance must be paid. (3) Work is unskilled manual labour (road construction, water conservation, etc.). (4) Preference to women — at least 1/3 beneficiaries must be women. (5) Creates assets for the village (dams, roads, wells). (6) Reduces distress migration to cities.
Q4What is the difference between organised and unorganised sectors?
Organised sector: (1) Registered with government. (2) Follow rules and regulations — labour laws, minimum wages, provident fund. (3) Workers have job security, paid leave, medical benefits. (4) Examples: government offices, large companies, banks. Unorganised sector: (1) Not registered, small and scattered. (2) Rules not followed — no minimum wage, no job security. (3) Workers are exploited — long hours, low pay, no benefits. (4) Examples: small shops, brick kilns, street vendors, domestic workers. About 93% of Indian workers are in the unorganised sector.
Q5Which sector of the Indian economy employs the most people?
The primary sector (agriculture) employs the most people in India — about 43% of the workforce. However, it contributes only about 17% to GDP. This mismatch shows disguised unemployment and underemployment in agriculture. The service sector contributes most to GDP (55%) but employs fewer people.
Practice Sectors of the Indian Economy
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