Chapter 2 Sectors of Indian Economy

TEXTBOOK EXERCISES

Question 1.
Fill in the blanks using the correct option given in the brackets :

  1. Employment in the service sector__________ increased to the same extent as production. (has/has not)
  2. Workers in the__________ sector do not produce goods. (tertiary/agricultural)
  3. Most of the workers in the___________ sector enjoy job security. (organised/unorganised)
  4. A_______ proportion of labourers in India are working in the unorganised sector.  (large/small)
  5. Cotton is a__________ product and cloth is a____________ (natural/manufactured)
  6. The activities in primary, secondary and tertiary sectors are______________ (independent/interdependent)

Answer:

  1. has not
  2. tertiary
  3. organised
  4. large
  5. natural; manufactured
  6. interdependent

Question 2.

  1. How the sectors are classified on the basis of ownership of enterprises?
  2. What is the secondary sector?
  3.  What is GDP?
  4. In terms of GDP what was the share of the tertiary sector in 2003?

Answer:

  1. Public and Private sector.
  2. Production of a commodity, mostly through the natural process is called the secondary sector.
  3. GDP is the sum total of the value of all final goods and services of three sectors.
  4. Between 50 percent to 60 percent.

Question 3.

  1. How the problem of unirrigated land can be solved?
  2. How the problem of low prices for crops can be solved? Give one solution.
  3. How the debt burden of the farmers can be reduced?
  4. How people/farmers can be provided a job in the offseason?
  5. “The farmers are compelled to sell their grains to the local traders soon after harvest.” How this can be avoided?

Answer:

  1. The problem of unirrigated land can be solved by the construction of canals by the government.
  2. This problem can be solved by setting up cooperative marketing societies.
  3. The debt burden of the farmers can be reduced by banks by granting credit at low interest.
  4. The farmers can be given jobs in the offseason by setting up agro-based mills.
  5. This can be avoided by the procurement of foodgrains by the government at a reasonable/ fixed price.

Question 4.
Classify the following workers under their correct sector :
Tourist guide, vegetable vendor, cobbler, Sahara Airlines
Answer:

  1. Tourist guide – Organised sector
  2. Vegetable vendor – Unorganised sector
  3. Cobbler – Service sector
  4. Sahara Airlines – Private sector

Question 5.
A research scholar looked at the working people in the city of Surat and found the following :

Place of work

Nature of employment

Percentage of working people

(1) In offices and factories registered with the government

Organised

15

(2) Own shops, office, clinics in marketplaces with formal license

 

15

(3) People working on the street,
construction workers, domestic workers

 

20

(4) Working in small workshops usually not registered with the government

  

Complete the table. What is the percentage of workers in the unorganized sector in this
city (in percent) ?                                                                                            ,
Answer:
Complete table is given below :

Place of work

Nature of employment

Percentage of working people

(1) In offices and factories registered with the government

Organised

15

(2) Own shops, office, clinics in marketplaces with formal license

Organised

15

(3) People working on the street, construction workers, domestic workers

Unorganised

20

(4) Working in small workshops usually not registered with the government

Unorganised

50

Question 6.
Do you think the classification of economic activities into primary, second­ary, and tertiary sectors is useful? Explain how.
Answer:
The classification of economic activities into primary, tertiary and secondary is useful on account of the information it provides on how and where the people of a country are employed. also this helps in ascertaining as to which sector of economic activity contributes more or less to the country’s GDP and per capita income.

If the tertiary sector is developing much faster than the primary sector, then it implies that agriculture is depleting, and the government must take measures to rectify this. The knowledge that the agricultural profession is becoming unpopular or regressive can only come if we know which sector it belongs to. Hence it is necessary to classify economic activities into these there sectors for smooth economic administration and development.

Question 7.
For each of the sectors that we came across in this chapter, why should one focus on employment and GDP? Could there be other issues that should be examined? Discuss.
Answer:
For each of the sectors mentioned in this chapter, our focus should definitely be on employment and GDP. This is because growth in GDP and full employment are common goals of Five Year Plans and they also determine the size of a country’s economy. A focus on employment and GDP helps us to calculate and monitor the most important factors like per capita income, productivity, changes in employment rate, and contribution to GDP by the three sectors of the economy and thus, takes necessary steps required for the upliftment of the country’s economy as a whole.
Yes, the other issues which should be examined are

  1. balanced regional development
  2. equality in income and wealth among the people of the country.
  3. how to eradicate poverty
  4. modernization of technology
  5. self-reliance of the country
  6. how to achieve surplus food production in the country.

Question 8.
Make a long list of all kinds of work that you find adults around you doing for a living. In what way can you classify them? Explain your choice.
Answer:
(1) List of working adults: Engineer, doctor, washerman, electrician, shopkeeper, milk vendor, insurance manager, professor, government employee, a zamindar, vegetable seller, domestic help, a factory owner.

(2) Classification of the above kinds of work :

  • Primary sector: Zamindar (landowner).
  • Secondary sector: Factory owner.
  • Tertiary sector: Engineer, doctor, washerman, electrician, shopkeeper, milk vendor, insurance manager, professor, government employee, vegetable vendor, and domestic help.
  • Organised sector: Engineer, insurance manager, and doctor.
  • Unorganised sector: Washerman, vegetable vendor, milk vendor, shopkeeper, electri­cian and domestic help.
  • Public sector: Government employee and professor in a government college.
  • Private sector: Engineer and doctor.

Question 9.
How is the tertiary sector different from other sectors? Illustrate with a few examples.
Answer:
The tertiary sector different from other two sectors. This is because other two sectors produce goods but, this sector does not produce goods by itself. But the activities under this sector help in the development of the primary and secondary sectors. These activities are an aid or support for the production process. For example, transport, communication, storage, banking, insurance, trade activities etc. For this reason this sector is also known as service sector.

Question 10.
What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Answer:
(1)

  1. Disguised unemployment is a situation in which more people are engaged in an activity than the required ones,
  2. This kind of Buder-employment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed.
  3. Hence it is also called disguised unemployment,
  4. Under disguised unemployment even if the surplus people are removed from work, the production does not suffer.

(2) Rural areas: In rural area in India, more people are employed in agriculture than necessary. Even if you move a few people out, production will not be affected. As such workers in the agricultural sector are underemployed.

(3) Urban areas:

  1. The disguised unemployment or under-employment exists in urban areas too. For example, there are thousands of casual workers in the service sector who search for daily employment,
  2. They are employed as painters, plumbers and repairpersons and other doing odd jobs,
  3. Many of them do not find work every day,
  4. Similarly, there are other people of the service sector on the street pushing a cart or selling something who may spend the whole day but earn very little. They do this work because they do not have better opportunities.

Question 11.
Distinguish between open unemployment and disguised unemployment.
Answer:
The differences between open unemployment and disguised unemployment are as mentioned below :

Open Unemployment

Disguised Unemployment

(1) Open unemployment implies a situation when a person is unable to find any gainful work or job

Disguised unemployment is a situation in which more people are engaged in an activity than the required ones.

(2)   A person is able and willing to work but does not find gainful work. He does nothing

person gets work and are actually engaged in such an activity that he appears to be employed but he is not fully employed. He does not work upto his full capacity.

(3) In open unemployment a person loses his personal identity and sometimes suffers from mental illness. He may commit crimes and even make an attempt of suicide because it leads to depression.

In such cases there are surplus workers and if they are removed from work, production does not suffer. In this all remain busy in doing work although they do not work to their maximum strength.

Question 12.
“The tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.
Answer:
No, I do not agree with the statement that tertiary sector is not playing any significant role in the development of Indian economy. The reasons are as follows:

1. In terms of GDP this sector emerged as the largest producing sector in India surpassing the primary and secondary sectors. In 1973, the share of the tertiary sector in GDP was about 35% which increased to more than 50% in 2003. Over the thirty years between 1973 and 2003, while production in all three sectors increased, it has been the most in tertiary sector.

2. In terms of employment also the rate of growth of employment in tertiary sector between the same period was nearly 250%. This was negligible in primary sector.

Question 13.
Service sector in India employs two different kinds of people. Who are these ?
Answer:
Service sector in India employs two different kinds of people as mentioned below :

  1. There are highly skilled and educated workers such as teachers and doctors.
  2. On the other hand, a large number of workers are engaged in services such as small shopkeepers, repair persons etc. who barely manage to earn a living. They perform these services because they do not have any other work to do.

Question 14.
Workers are exploited in the unorganised sector. Do you agree with this view ? Give reasons in support of your answer.
Answer:
It is a fact that the workers are exploited in the unorganised sector due to the following reasons :

  1. The unorganised sector consists of small and scattered units which are largely outside the control of the government.
  2. There are rules and regulations but generally these are not followed by the employers.
  3. Workers are employed on irregular basis. They are low paid and there is no provision
    for overtime, paid leave, holidays, leave due to sickness and other facilities e.g., provident fund.
  4. Jobs are not secured. They can be asked to leave without any reason at the sweet will of the employer. Generally, when there is less work due to any reason, some workers are asked to leave.
  5. Workers in this sector face social discrimination too because most of them belong to Scheduled Castes, Scheduled Tribes and Other Backward Classes.
  6. Some workers who do repair work etc. are also exploited as they do not get regular work.
  7. Farmers work on their own and hire labourers as and when they require.

Question 15.
How are the activities in the economy classified on the basis of employment conditions?
Answer:
Organised sector and unorganised sector.

Question 16.
Compare the employment conditions prevailing in the organised and unor­ganised sectors.
Answer:
The conditions in the organised and unorganised sectors are as follows :

Organised Sector

Unorganised Sector

(1) Organised sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work.

(1) Unorganised sector is characterised by small and scattered units where the terms of employment are not regular and people have no assured work

(2) They are registered by the government and have to follow its rules and regulations which are given in various laws such as Factories Act. Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act etc.

(2) They are not registered by the

government and do not follow any rules

and regulations.

(3) It is called organised because it has some formal processes and procedures.

(3) It is called unorganised because it has no formal processes and procedures. All decisions are taken by the employers themselves.

(4) Some of these people may not be employed by any one but may work on their own but they too have to register (Tourist Guide) themselves with the government and follow rules and regulations.

(4) There is no need for registration.

Employers are all in all. They take

decisions in their own interest.

(5) They have fixed working hours. If they work more they get overtime. They get regular salary at the end of the month.

(5)There are no fixed working hours. The employees have to work according to their work and employers’ wish.

(6) Facilities such as PF, medical allowances are given to them.

(6) No facilities such as PF, medical allowance are generally given in this sector.

(7) They get paid holidays such as Sunday and other government holidays.

(7) They do not get paid holidays. However it is the sweet will of the employer to grant any holiday.

(8) Appointment letters with terms and conditions is issued to employees.

(8) Sometimes appointment letters are issued but these can be changed as and when desired by the employer.

(9)     Control of the government directly or indirectly.

(9) Generally, there is no control of the government. Rules are there but these are generally not followed by the employers.

(10)   In organised sector, a factory manager has to ensure facilities like drinking water and a safe working environment.

(10)  No arrangement such as of drinking water are made. Even if there is any such arrangement, that is rarely followed in practice.

(11) After retirement workers get pension ajid gratuity.

(11)  No pension and gratuity is granted in unorganised sector.

Question 17.
Explain the objective of implementing the NREGA 2005.
Answer:
The objective of implementing the NREGA 2005 was to provide 100 days of guaranteed employment to those people in rural India who can work, and are in need of work. This Right to Work has been implemented in 200 districts. If the government is unable to provide this employment, then it has to give unemployment allowances to the people.

Question 18.
Using examples from your area compere and contrast the activities and functions of private and public sectors?
Answer:
The activities and functions of private and public sectors in our area may be compared as mentioned below :

Private Sector

Public Sector

(1) The vegetable shops, grocery shops, sweet shops etc. are in private sector.

(1) Mother Dairy booths which sell vegetables, fruits, milk and milk products are in public sector.

(2) These are owned by private individuals.

(2) These are owned by public sector undertaking ‘Mother Dairy’

(3) Vegetables and other products are generally of good quality.

(3) The vegetables and fruits are generally of average or poor quality.

(4) The rates may be slightly higher

(4) The rates are lower than the market rates.

(5) The companies like Reliance, Tata, Airtel provide telephone and TV services which are of very good standard.

(5) MTNL provides telephone services. There are complaints against their services. On many occasions, telephones remain out of order, hut they do not charge for that period.

(6) The shopkeepers provide free home delivery service without any extra-charge.

(6) Mother Dairy or any other public under taking do not provide free home delivery service.

(7) Private schools provide education of good quality. Their students are well-dressed and disciplined. Their medium of in structions is always English.

(7) The schools run by MCD do not provide quality education. Their students are not well-dressed and disciplined. Their medium of instructions is generally Hindi.

Question 19.
Discuss and fill the following table giving one example each from your area :

 

Well managed organisation

Badly managed organisation

Public sector

  

Private sector

  

Answer:

 

Well managed organisation

Badly managed organisation

Public sector

MTNL

MCD

Private sector

Private Nursing Homes or Hospitals

TPDDL

 In the public sector, the services provided by MTNL are better than others and are cheap too. On the other hand, the services provided by the MCD such as sanitation are not satisfactory. Sometimes, the sewers are blocked during rainy season creating health problems in the area.

In the private sector, there are a few private nursing homes and hospitals which provide good medical facilities. But some of the companies such as TPDDL in the private sector have not risen up to the mark. There are still ‘breaks’ in the supply of electricity in the area which cause hardship to the people.

Question 20.
Give a few examples of public sector activities and explain why the govern­ment has taken them up.
Answer:
(1) A few examples of public sector activities are as mentioned below :

  • Electricity – production and distribution.
  • Selling of food grains – wheat and rice.
  • Health and education.
  • Safe drinking water.
  • Housing facilities for the poor.
  • To take care of the poorest and ignored regions.

(2) The government takes up the public sector activities due to the following reasons:

  • The modern state is a welfare state which looks after the interests of the people. The government raises money through taxes and other ways and spends on public sector activities for the welfare of the people.
  • Selling electricity at the cost of generation may push up the costs of production of industries. Small scale units may shutdown. Therefore government steps in by producing and supplying electricity at rates which these industries can afford. Govt, has to bear part of the cost.
  • To have food security in the country, the government of India buys wheat and rice from farmers at a ‘fair price’. These are stored in its godowns and sold at a lower price to consumers through ration shops. The government bears some cost and in this way it supports both farmers and consumers.
  • In modern welfare state, it is the responsibility of the government to provide health and education facilities for all citizens. Running proper schools and providing quality education is the duty of the government.
  • In India half of children are malnourished. Hence government pays attention to aspects of human development such as availability of safe drinking water, housing facilities for the poor and food and nutrition.
  • It is also the duty of the govt, to take care of the poorest and most ignored regions of the country through increased spending in such areas.

Question 21.
Explain, how public sector contributes to the economic development of a nation.
Answer:
Generally, economic development of a nation can be defined as long term increase in per capita income alongwith improvement in quality of life. The public sector contributes to the economic development of a nation in many ways as mentioned below :

  • In public sector, the government owns most of the assets and provides services to the people. For example Railways and Post Offices. Railways is the biggest public undertaking. It is very useful for people, traders and industrialists. It is the most dependable mode of transport as it is least affected by weather conditions such as rain, fog compared to other modes of transport. It is better organised than any other form of transport. It is suitable for bulky and heavy goods.
    It is cheaper transport. It is the largest public undertaking. The railways provide greater employment opportunities for both skilled and unskilled labour. Over 16 lakh persons are depending upon railways for their livelihood. Thus it contributes a lot towards the economic development of the country.
  • Public sector helps in development through Creation and infrastructure.
  • It helps in the development of small, medium and cottage industries.
  • It contributes to community development i.e., to the Human Development Index via health and educational facilities.
  • It tries to ensure equality of income wealth and thus a balanced regional development.
  • It ensures easy availability of goods at moderate rates.
    In India, the public sector has played a significant role in the eradication of illiteracy. The number of literates has increased from 9 per cent of females and 27 per cent of males in 1951 to 75 per cent of males and 54 per cent females in 2001. The government’s efforts in providing health facilities has raised average life expectancy from 32 years in 1950-51 to 61 years in 1993­Thus, we find that public sector contributes to the economic development of a nation in a significant way.

Question 22.
The workers in the unorganised sector need protection on the following issues : wages, safety and health. Explain with examples.
Answer:
(1) Wages: The workers in the unorganised sector do not get minimum wage fixed by the government. They are not paid any allowances like dearness allowance or city compensatory allowance. They are paid only their wages. They are not paid for the extra time, they work in the factory. They do not get any leave or paid holiday.

(2) Safety:
 No safety measures are taken in the factories for the protection of the workers. This results in injuries or death of labourers in the factory in case of fire or any other accident.

(3) Health: The workers in the unorganised sector are not provided any medical facilities. Whenever they fall ill or get injured, they get themselves treated by private doctors by paying for the treatment. Sometimes the working conditions are not hygienic. They are not paid any medical allowance too. Lack of medical facilities affect their health and efficiency badly.

Question 23.
A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000 worked in the unorganised sector. The total income of the city in this year (1997-98) was ? 60,000 million. Out of this ? 32,000 million was generated in the organised sector. Present this data as a table. What kind of ways should be thought of for generating more employment in the city ?
Answer:
(1) The data is given below as a table :

Sector

Year

Number of workers

Income

Organised

1997-98

4,00,000

32,000 million

Unorganised

1997-98

11,00,000

128,000 million

Total

 

15,00,000

60,000 million

(2) The following ways or steps should be taken by the government for generating more employment in the city :

  1. Electricity should be provided to the factories regularly and at cheap rate especially to the small units. Government should bear part of the cost.
  2. Adequate land should be given to people to’set up factories or small units.
  3. Financial assistance should be given at less rate of interest.
  4.  Raw materials should be made available to the factory owners and other small unit holders.
  5. Transport and other facilities should be made’available.

Question 24.
The following table gives you the GDP in Rupees (crore) by the three sectors :

Year

Primary sector

Secondary sector

Tertiary sector

1950

80,000

19,000

39,000

2000

3,14,000

2,80,000

5,55,000

(1) Calculate the share of the three sectors in GDP for 1950 and 2000.
(2) Show the data as a bar diagram similar to Graph 2 in the chapter.
(3) What conclusions can we draw from the bar graph
Answer:
(1) The share of the three sectors in GDP for 1950 and 2000 was as given below :

 

1950

2000

(a) Primary sector

57.97%

27.32%

(b) Secondary sector

13.77%

24.36%

(c) Tertiary sector

28.26%

24.36%

(2) Share of sectors in GDP is shown in the bar diagram given below :
Extra Questins for Class 10 Social Science Economics Chapter 2
(3) From the bar diagram the following conclusions can be drawn :

In 1950, the share of primary sector in GDP was more than other sectors. It was 57.97% in comparison to 13.77% and 28.26% of secondary and tertiary sectors respectively.
However in 2000, the share of primary sector decreased from 57.97% to 27.32% while the share of tertiary sector increased from 28.26% to 48.32%. The share of secondary sector too increased from 13.77% in 1950 to 24.36% in 2000