Chapter 2: Sectors of The Indian Economy
6. Complete the table. What is the percentage of workers in the ungarnished sector in this city?
Ans. The percentage of workers in the two sectors is as follows.
The proportion of workers in the unorganised sector in this city (in percentage).
In the organised sector there are 15 + 15 = 30% people.
In the unorganised sector there are 20 + 50 = 70 % people.
6. Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.
Ans. We know that people are engaged in various economic activities every day. Some of these activities are producing goods and some others are producing services. In order to understand these activities, these are grouped into different categories using some important criterion. These groups are called sectors, e.g., primary, secondary and tertiary sectors. Classification of economic activities is useful in the following ways:
(i) It makes easy to find out how much goods and services are produced and how many people work in each sector. For example, in India in 2011–12, the share of primary sector in employment was about 50%, i.e., more than other sectors.
(ii) It helps in knowing the contribution of each sector separately in the Gross Domestic Product of the country.
(iii) It provides information about the employment conditions in each sector.
(iv) The shift of people from primary to tertiary sector implies that the contribution of the agriculture sector is depleting and the government must adopt measures to rectify it.
(v) It provides information about the progress of different sectors indicating economic development.
7. For each of the sectors that we come across in this chapter why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.
Ans. For each of the sectors we focus on employment and GDP due to the following reasons:
(i) While there has been a change in the share of the three sectors in GDP, a similar shift has not taken place in employment.
(ii) The primary sector continues to be the largest employer in 2013–14 because enough jobs were not created in the other two sectors. But it contributes only a about a quarter of the GDP.
(iii) Secondary and tertiary sectors produce four-fifths of the product whereas they employ less than half of the people.
(iv) Production in the service sector rose by more than 14 times, but employment rose around 5 times only.
(v) By focusing on GDP and employment we can draw conclusions regarding the generation of new employment opportunities in different sectors and take necessary steps accordingly.
We should examine other issues such as:
(i) Conditions of work should be in favour of workers.
(ii) Workers should get regular employment.
(iii) Employers should follow various laws such as the Factories Act, Minimum Wages Act, etc.
(iv) Production should be in favour of the people of the country.
8. Make a long list of all kinds of work that you find adults around you are doing for a living. In what way can you classify them? Explain your choice.
Ans. Adults are working as a bank manager, chartered accountant, engineer, doctor, government employee, insurance manager, electrician, shopkeeper, factory owner, people engaged in forestry, contractor, farmer, milk vendor, teacher, bank employee, dry cleaner, vegetable vendor, domestic help, etc.
Workers can be classified as follows:
Primary sector: Farmers, people engaged in forestry, etc., who produce goods by exploiting natural resources.
(ii) Secondary sector: Factory owner, engaged in the process of manufacturing.
(iii) Tertiary sector: Engineer, doctor, bank manager, teacher, chartered accountant, government employee, insurance manager, electrician, shopkeeper, milk vendor, vegetable vendor, dry cleaner, contractor, domestic help, etc., providing services.
(iv) Organised sector: Engineer, doctor, insurance manager, bank manager, chartered accountant, teacher, government employee, factory owner, etc., registered by the government.
(v) Unorganised sector: Drycleaner, vegetable vendor, milk vendor, shopkeeper, electrician, people engaged in forestry, domestic help, farmer, etc., who are not registered by the government.
(vi) Public sector: Government employee in any work, a teacher in a Government school, etc.
(vii) Private sector: Engineer, doctor, teacher, chartered accountant, insurance manager, etc., in private companies.
9. How is the tertiary sector different from other sectors? Illustrate with a few examples.
Ans. The tertiary sector is different on the following basis:
(i) Tertiary sector activities help in the development of primary and secondary sectors, e.g., it supports agriculture and industries by providing services. (ii) Tertiary sector activities by themselves do not produce any good, but they are an aid or support for the production process. For example, transport services help in transporting goods from the factory to the markets for sale or for storing in warehouses.
(iii) Tertiary sector provides communication services and bank services to the traders in order to help in production activities.