The Cbse notes social science class-10th

Sector of the indian Economy


Chapter-2  Sector of the Indian Economy (Economic)


Sectors of Economic Activities

→All activities that gave an income in return are called economic activities.Example , people going for work in factories , banks,schools etc.

→Economic activities can be classified into different sectors on the basis of nature of work.

•Primary sector:Goods which are produced by exploiting natural resources come under the category of primary sector .This sector is also called agriculture and related sector eg-Cotton which is a natural product.



•Secondary sector: Transformation of one good into another comes under the category of secondary sector. Manufacturing is one of the important components of this sector.
Example: Transformation of sugarcane into sugar.


•Tertiary sector:All production units producing services which help in the development of primary and secondary sectors come under the category of tertiary sector.This is known as service sector.

Example-Services given by doctors, teachers, lawyers etc.

→These three sectors are highly interdependent on one another. This can be explained with the help of an example: Farmers buy goods such as tractors, pump sets, and fertilizers(manufacturing sector)to produce agricultural goods (Primary sector). This shows the dependence of the primary sector on the secondary sector. Now farmers want to sell their output.

For this, they need transport facilities.It shows the dependence of the primary sector on the tertiary sector.

→The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year and the sum of production in these sectors gives us gross domestic product(GDP)of a country.


→Teritary sector has emerged as the largest sector because it helps in the development of primary and secondary sectors.

Several services such as hospitals, banks, insurance companies, transport, educational institutions are the basic services that are required by primary and secondary sectors for their normal functioning.

Division Of Sectors as Organised and Unorganised

→Organized sector covers those enterprises or places of work where the terms of employment are regular. They are registered by the parliament have to follow its rules and regulations.Therefore people have job security.

→Unorganised sector covers small and scattered units which are largely outside the control of the government.There are rules and regulations but they are generally not being implemented by the unorganised sector.Employment is not secure in the unorganised sector.


→In unorganised sector, protection and support is required for the workers for their economic and social development.Besides getting irregular and low paid work ,they also face social discrimination.

Sectors in terms of ownership, Public and Private

→Public sector is the sector which is owned,controlled and managed by the government. 

→In private sector ownership,the production units is in the hands of private individuals.

Activities in the private sector are mainly  guided by the motive to earn profit.Examples of privately owned companies are TISCO And RIL.

→Employment is an activity from which a  person earns the means of living.i.e income in cash or in kind .

How To Create more Employment?

→Unemployment refers to a situation where the persons who are able to work and are willing to work, fail to secure work.

→Underemployment is a situation in which a worker gets work for less time than the time he can work. In other words, he remains unemployed for some months in a year or some hours everyday.

→There was a big change in the share of three sectors in G.D.P(from 1970-71 to 2009-10) but data shows that such a similar shift has not taken place in terms of employment.

→In the secondary sector, output went up by more than 9 times but in terms of employment rose up by only 3 times.

→In the Tertiary sector, output went up 14 times whereas employment rose up 5 time.

→ The government can create more employment opportunities by providing better infrastructure such as roads, dams, canals, etc. Further, this  can be enhanced by providing  services
Like banks, transport, and communication.

→Set up industries that process vegetables and agricultural produce like potatoes, rice, wheat, tomato, and fruits which can be sold in outside markets. This will provide employment in industries located in semi-rural areas.


→Mahatma Gandhi National Rural Employment Guarantee Programme -2005(NREGA-2005): This act is implemented as 'Right to work 'in 200 Districts of India and then extended to an additional 130 Districts. Under this act, all those who are able to work and are in need of work have been guaranteed 100 days of employment in a year by the government. However, only one person per family is entitled to this benefit.