CBSE Notes Class 10 Economics Chapter 2 – Sectors of the Indian Economy
Sectors of Economic Activities
A sector is a big part of the economy where businesses do the same kind of work or sell
similar products or services.
Primary Sector:
In this sector, we get goods by taking out natural resources. Examples are farming, fishing,
mining, and cutting trees.
Secondary Sector:
This sector changes natural things into different forms through manufacturing. It comes
after the primary sector. Here, things are made in factories. For example, cotton from plants
is turned into cloth, and sugar is made from sugarcane.
Tertiary Sector:
In this sector, activities support the primary and secondary sectors. They don’t make goods
themselves but help in the production process. This is also called the service sector. For
example, teachers, doctors, drivers, bankers, and software companies are part of this sector.
Comparing the 3 Sectors:
The total goods and services made in each sector in a year show how much each sector
produces. If we add up what all sectors make, we get the Gross Domestic Product (GDP) of
a country. GDP shows how big an economy is. In India, the government measures GDP.
Where are Most People Employed?
More than half of the workers in India work in the primary sector, mostly in farming.
The secondary and tertiary sectors together employ less than half the people.
But they produce most of the things, around four-fifths.
How to Create More Jobs?
We can create jobs by promoting industries and services in rural areas.
Tourism, local crafts, and new services like IT can also generate employment.
The government’s law, MGNREGA 2005, guarantees 100 days of work to rural people if they
need it.
Division of Sectors as Organised and Unorganised
Organised Sector
The organised sector has jobs with fixed schedules and stable employment. Workers here
have assured work.
These jobs are regulated by the government. Laws like the Factories Act, Minimum Wages
Act, and Payment of Gratuity Act apply to them.
Workers in this sector usually have regular hours. If they work extra, they get paid for the
extra time.
Employment in the organised sector is secure. Employees can’t be fired without a valid
reason.
Workers in this sector enjoy various benefits like paid leave, holidays, and medical coverage.
They also have retirement benefits like pensions.
Unorganised Sector
The unorganised sector consists of small, scattered businesses not regulated by the
government.
Since they’re not registered, they don’t have to follow government laws and regulations.
Jobs in this sector are often irregular and low-paying.
Employment in the unorganised sector isn’t secure. Workers can be fired without any
reason.
There are no benefits like paid leave, holidays, or medical coverage in the unorganised sector.
Examples of the organised sector include government employees, factory workers, and
professionals like nurses or teachers. In contrast, the unorganised sector includes jobs like
farming, shopkeeping, or domestic work.
Protecting Workers in the Unorganised Sector
The government can set minimum wages and working hours.
It can offer cheap loans and basic services like education and healthcare.
Laws can be made for benefits like paid leave and sick leave.
Sectors in Term of Ownership: Public and Private Sectors
Public Sector
In the public sector, most assets are owned by the government, and it provides all services.
Examples include government-run services like railways or the post office.
The main goal of the public sector is public welfare, not just making profits.
Private Sector
In the private sector, individuals or companies own assets and provide services.
Companies like Tata Iron and Steel Company Limited (TISCO) or Reliance Industries Limited
(RIL) are examples.
The main motive of the private sector is to make profits.
Government Responsibilities
The government raises money through taxes to provide services like roads, electricity, and
education.
It supports farmers by buying their produce at fair prices and selling it at lower prices to
consumers.
Ensuring proper schools, healthcare, and housing for all are also government duties.
