💼 Class 10 Economics Chapter 2 – Sectors of the Indian Economy

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In this post, we will learn about the different sectors of the Indian economy, their characteristics, importance, and contribution to national income.

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🏭 I. Classification of Economic Activities

Economic activities are classified based on nature of work into three sectors:

1. Primary Sector (Agriculture & Natural Resources)

• Activities related to natural resources (farming, fishing, mining)

• Called primary because it forms the base of all production

2. Secondary Sector (Manufacturing)

• Involves processing raw materials into finished goods

• Example: Cotton → Cloth, Iron → Steel

3. Tertiary Sector (Services)

• Provides support services to both primary and secondary sectors

• Includes transport, banking, teaching, communication

✅ These sectors are interdependent.

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📊 II. Comparing the Three Sectors

1. Production

• Measured in terms of value of goods and services

• GDP = Gross Domestic Product = Total value of goods/services in a year

2. Contribution to GDP

• Initially, primary sector dominated

• Now, tertiary sector contributes the most to GDP in India

3. Employment

• Primary sector still employs the largest share of workers in India

• Many are in disguised unemployment

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🔍 III. Historical Shift in Sectors

Developed Countries:

• Shift from primary → secondary → tertiary

In India:

• Shifted directly from primary → tertiary

• Secondary sector (manufacturing) has not grown much

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❗ IV. Problems in Employment

1. Disguised Unemployment

• More people are working than needed

• Common in agriculture

• Workers seem busy but contribute no extra output

2. Underemployment

• Skills not fully used

• Example: A graduate working as a street vendor

✅ These are major challenges in rural and informal sectors.

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🧑‍🌾 V. How to Create More Employment?

Government can take initiatives:

• Invest in rural infrastructure (roads, canals)

• Provide subsidies and loans for small industries

• Promote education and skill development

• Launch employment schemes (like MGNREGA)

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🏢 VI. Organized and Unorganized Sectors

1. Organized Sector

• Registered by the government

• Workers get fixed salary, job security, benefits

• Examples: Banks, government offices, large companies

2. Unorganized Sector

• Not registered, no job security or benefits

• Examples: Street vendors, daily wage laborers

✅ Majority of Indian workers are in the unorganized sector

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🏳️ VII. Public and Private Sectors

1. Public Sector

• Owned and operated by the government

• Aim: Welfare of people

• Examples: Indian Railways, ONGC, Bharat Petroleum

2. Private Sector

• Owned by individuals or companies

• Aim: Profit

• Examples: Reliance, Infosys, TATA

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🏥 VIII. Importance of Public Sector

Government plays a crucial role in:

• Providing basic services (education, health, transport)

• Supplying infrastructure (roads, power, irrigation)

• Supporting low-profit sectors that are essential (like water supply)

• Promoting equality and employment

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📚 IX. Key Terms

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📌 Summary Table