Sectors Of The Indian Economy

The difference between different types of sectors is as follows:

Above mentioned occupations are categorized as follows…

Students in a school are often classified into primary and secondary or junior and senior. This is the criteria which are used to easily identify the standard of a student, whether to identify the standard of a student or to know about his nature towards other students and teachers or to know the students’ knowledge. So these are the few basics on which students are classified into different categories or classes. There is no any kind of Casteism it’s just the way to know which student is senior or junior which is average, which is topper or which one is at the low level.

And yes, in my opinion this kind of classification is useful as it is not possible to classify them all on the basis of their age.

The history of developed countries indicate about the shifts that have taken place between sectors that from then to now there has been a major shift from the secondary sector which means manufacturing industries to the tertiary sector or service sector, which has become the most important sector of the country’s economy and most number of people are employed in this sector in the developed countries which means a lot of changes can be noticed if we look up at history once.

We count the value of all the final goods and services that were produced in a particular year. Gross domestic product itself shows that what is the flow of goods and services in a financial year in an economy. And to calculate GDP it’s necessary to count all the final goods and services which are produced in a particular year.

(i) In 1971-72 the largest producing sector was primary sector.

(ii) In 2011-12 the largest producing sector is tertiary sector.

(iii) The tertiary sector has grown the most over forty years.

(iv) The total GDP of India in 2011-12 was 2,10,000 crore rupees.

Graph 2: Share of Sectors in GDP (%)

From the table it can be noticed that the share in GDP has reduced drastically from 40% to 12%, as it was 40% in 1971-72 then it increased 9% in 1972-73 and in 2011-12 it has become 12% only. And the share in employment was 0% in 1971-72 and in 1972-73 it has increased upto 74% after that in 2011-12 again it reduced and came down as it remained 49% only.

It is very clear that underemployment occurs when various people are working less than what they are capable of doing. It is also known as hidden unemployment because of no job opportunities people are unable to find the other job and the place where they are working is already full of employees so there is no need of other employees still these people who don’t have any other works are engaged in this.

Secondary and tertiary sectors are increasing at a rapid speed and especially tertiary sector is increasing and its contribution in developing the economy of our country has been more always. It renders many job opportunities so that people are able to earn their livelihood. If India wants to become a strong industrialized nation then not the growth of only tertiary sector but all sectors must be grown at equal rate so that it can work properly for a better and bright economy.

We should be worried about unemployment because if there is no job then how will people survive. Our nation will become poorer and will never be grown at any cost. It is said that if we want a strong and bright future then base must be strong and hard so that no can harm it any cost. So, if there is no employment then how will people be able to get the education and how will they serve their economy and besides this there are many more reasons that we must be worried about unemployment. Only because of employment a person is able to serve and survive without this nothing will be possible.

National Rural Employment Guarantee Act 2005 was launched by the government to provide job opportunities so that people might be able to earn their livelihood. It guarantees at least 100 days work for one member of each family. This program fulfills one of the fundamental rights as per the Constitution and the right is ‘Right to work’.

Every citizen of a country has the right to work and if government is unable to provide more and more job opportunities then it will have to pay daily wages especially to those sections of society who are impoverished. This is why this programme is called ‘Right to Work’.

Activities are as follows..

(i) Water conservation and water harvesting is the most important things that must be included under this Act.

(ii) To stop the problem of drought tube wells must be dug.

(iii) To irrigate the canals for crops irrigation panels must be set up.

(iv) To make provision of irrigation facility on the lands of SCs and STs and others.

(v) Renovation of traditional water bodies like tanks.

(vi) Land must be developed for agriculture and horticulture.

(vii) To control flood and to protect from any such disasters check dams must be constructed.

(viii) To improve rural connectivity and to provide all weather access to the villages roads must be constructed.

(i) All the farmers require transporting their products to a nearby town for sales and if the government invests money in transportation and storage of crops or for the betterment of rural roads so that mini trucks and other vehicles can reach everywhere.

(ii) If any dam is constructed and canals are dug to solve the issue of irrigation then the agricultural land could lead to a lot of employment generation within the agricultural sector itself.

To increase the employment opportunities in urban areas:

(i) It is necessary to invest in the basic industries so that more and more people should be employed.

(ii) To improve the local and inter city transportation which will increase the number of people working in the transportation industry.

(iii) Increasing of vocational education courses which will increase the job opportunities in other ways also due to which people can easily educate themselves for the vocation jobs.

(iv) By giving incentives the capacity of industry in the urban areas employment opportunities can be increased.

Unorganized Sector’s example is as follows..

(ii) A head load worker carrying a bag of cement on his back in a market.

(iii) A farmer irrigating her field.

(v) A daily wage labourer working under a contractor.

(vii) A handloom weaver working in her house.

The comparison of Working Conditions in the Organized and Unorganized Sectors is as follows:

Difference between organized sector and unorganized sector is as follows:

(i) The percentage of people in unorganized sector in agriculture is zero because as the proportion of agriculture sector people out of total number of people in unorganized sector is not mentioned over there so it means that the percentage is considered zero. Also we can consider that people were not engaged in agriculture at that time.

(ii) Yes, it can be said that agriculture in our country is an activity of the unorganized sector and the reasons are:

(a) People engaged in agriculture are not paid properly and not even on regular basis which is the first negative point.

(b) In the agriculture sector there is the issue of underemployment. More than required people are engaged in this sector.

(c) Farmers are dependent on moneylenders and relatives for their loan requirements.

(iii) If we look at the country as a whole, we find that 93% of the workers in India are in the unorganized sector. Organized sector employment is available to only about 7% of the workers in India.

(i) Has not

(ii) Tertiary

(iii) Organized

(iv) large

(v) Natural; manufactured

(vi) Interdependent

The sectors are classified into two types which are named as private and public sectors. This classification is made on the basis of ownership of enterprises. Private sectors are those sectors which is the part of the economy, and sometimes known as the citizen sector also, which is run by private individuals or groups, usually as a means of enterprise for profit, the private sector is run by private individuals or groups specially for the means of profit and is not controlled by the state and on the other hand public sector works for social welfare keeping profit at a side it serves the people in many ways.

GDP or Gross Domestic Product is the total value of goods produced and services provided in a country during one year and is used to measure a country’s economy. The data is collected by the Central Statistics Office (CSO) that falls under the leadership of the Ministry of Statistics and Program Implementation.

In terms of GDP the share of tertiary sector in 2003 is 50% to 60%. Tertiary sector is also known as service sector as it provides services to population. It employs many different kinds of people. At one hand it limited number of services that employ highly skilled and educated workers and at the other hand large number of workers are engaged in services such as small shopkeepers, repair persons, transport persons, etc. In the year 2003, the tertiary sector has emerged as the largest producing sector in India replacing the primary sector.

Production of a commodity, mostly through the natural process is an activity in primary sector. As we all know there are three sectors in an economy named as primary, secondary and tertiary. Basically primary sector belongs to the sector where agriculture is the very first activity we notice always. Products which are used here are milk, minerals and ores which are natural. These products become the cause of production of any commodity.

The correct match of the above is as follows:

(i) Among these four occupations tourist guide is the odd one because dhobi, tailor, potter all these three belong to private sector they do their work for profit only and can start working at any point of time and anywhere even at small scale but for a tourist guide these things are not that easy and first of all a tourist guide is appointed by the government and he serves the foreigners and but do not work just for profit.

(ii) Among these persons teacher, doctor, vegetable vendor, lawyer vegetable vendor is the odd one because to be a teacher, doctor, lawyer you must have skills and education which will be helpful in your in establishing your career as these occupations but for vegetable selling education does not matter that much because an uneducated person can also sell vegetables and all what it needs just good communication and calculation which depends on environment and not that big deal.

(iii) Among postman, cobbler, soldier, police constable, the cobbler is odd one because the profession of a cobbler belongs to public sector and at the same time it belongs to illiterate community and impoverished people. But on the other side postman, soldier, police constable these are the people who belong to literate community and basically they are from good family background not that much poor and bad.

(iv) Among these companies named as MTNL, Indian Railways, Air India, SAHARA Airlines, ALL India Radio, the odd one is SAHARA Airlines. Because it is a private enterprise while others are owned by the government.

In unorganized sector in the city the percentage of workers is 70%. And unorganized sectors are those under which people working on the street, construction workers, domestic workers, people working in small workshops usually not registered come .

The complete table is as follows:

Yes in my opinion the classification of economic activities into primary, secondary and tertiary sectors is very useful because classification will help us in identifying which activity is related to which sector. And besides this there are several reasons as follows:

a) The very first point which will be known that how many people and where are they employed in any country.

b) If development will be seen only in tertiary sector then it means that agriculture which is related to primary sector is deducting day by day and by noticing the rise and fall in both sectors government will be able to take strong action towards the improvement wherever it is required.

This is why to improve the sectors and to run the economy smoothly and for best administration and development, classification of economic activities is necessary.

There are different reasons to support that one should focus on employment and GDP:-

(a) If we focus on employment and GDP then size of a country’s economy can be determined easily.

(b) To easily determine the other issues about economy Per Capita Income and Productivity are very important things to know about in detail, which can be calculated by focusing on employment and GDP.

There are several kinds of work in which people are engaged living in our society. Their jobs can be classified as follows:

The main thing is that tertiary sector is also known as service sector. The difference is that tertiary sector is different from other sectors because it supports the process of production but does not produce goods. Also it covers the many more area which comes under unemployment.

All activities generate employment rather than goods which is the reason that tertiary sector is called service sector and it helps in the development of primary and secondary sector.

For example- Transportation, Storage, Communication, banking etc. are the examples of this sector because instead of producing products it produces employment which helps in the development of other sectors also.

Disguised unemployment refers to a kind of employment where people engaged in a work more than requirement. It is also known as hidden unemployment because we can’t see the people employed here are more than required. The situation of disguised unemployment basically arises when more and more people start working at the place where there is less need of more workers.

For example: It can be observed in the rural areas where all the members of a family of a farmer are working in a farm where only 3 members are required but 6 members are working in that field which means the other 3 person working in that farm are unemployed which will be categorized under disguised unemployment. The reason behind their working in the same farm is lack of jobs in urban areas as well as in rural areas. In urban areas also disguised unemployment can be seen in the service sectors.

We do not agree with this statement because the tertiary sector has become the most critical sector of our economy concerning both employment and GDP. This sector contributes around 60% off our GDP and more than 25% of our population is engaged in this sector. The tertiary sector will further grow because of the rise in income and demands of the people.

As we all know that service sector is also known as tertiary sector. And tertiary sector employs more and more people. It employs two different kinds of people and one of them is the workers that are well educated and highly skilled. And the other is the workers who are engaged in services such as small shopkeepers, mechanics, transport, persons, etc. And these poor people barely get the time to manage their own livelihood.

Yes, we do agree with this view that workers are exploited in the unorganized sector. The following reasons support the answer:
1)In this sector, there are small and scattered units which are out of control of the government. Certain rules and regulations are set up by the government, but none follow the rules. People are compelled to work and not even paid on time.

2) Workers generally have fixed working hours of 10-12 hours. But, they are given fewer wages and are also not paid for the overtime hours.

3) There is no job security and people can be asked to leave their jobs anytime.

4) Workers do not get any allowances apart from the fixed wages.

5) Usually, they are in heavy debts, and there are no such provisions in their support.

In the economy, activities are classified on the basis of employment in following way:

a) Organized sector: This sector refers to the sector where the terms of employment are regular and people have assured work. In this sector all the occupations are registered by the government and followed the rules set up by them. Workers of organized sectors enjoy security of employment.

b) Unorganized sector: This sector refers to the small and scattered units which are largely outside the control of the government. Rules in this sector are set up by the government as in organized sectors but these rules are not followed by any of workers in this sector.

NREGA is National Rural Employment Guarantee Act which is an Indian labour law and social security measure that aims to guarantee the right to work. And the main objective of implementing the NREGA is that all the people who are capable of and in need of work will get guaranteed 100 days’ work and in case if the government fails to do so, then the government will give unemployment allowances to them. Such kind of work would greatly help in future to enhance the production from land will be given preference under this act. The act was implemented in 330 districts of India’s as the Right to Work.

If we talk about public sector then in this the government owns most of the assets and gives all the services to public for example there is a government school in our locality and the activities of that school like children go for tours whether it is domestic or international all the expenses are done by government and students are honored by scholarships and many more things. But at the same time I noticed a hospital in the same locality and that hospital is private, there is no role of government in that hospital everything is a private asset of that hospital’s owner. And the charges are very high sometimes patients can’t afford. So, private sector’s ownership, assets and delivery of services are in the hands of the private individuals or companies.

Public sector activities include provision of water, electricity and some modes of transport. Government has taken up them as if we look the most important needs of human then water and electricity are the basic ones. If these works like providing electricity and water is left to private enterprises, the later might exploit this opportunity and these at rates which the masses cannot afford. So, to fulfill the basic needs of humans including water and electricity the government of our country supplies these things at very low and affordable prices.

Public sector contributes to the economic development in various ways:

a) This sector creates more and more employment opportunity.

b) It ensures easy availability of goods and services at moderate rates.

c) It contributes to the development of community also.

d) Development of financial resources is also generated by this sector.

e) It encourages the development of small, medium and cottage industries which contribute in the development of a nation.

In unorganized sector there are small and scattered units which are largely out of the control of the government. This provides no kind of provision for overtime, paid leave, holidays, and no leave due to sickness as well.

a) Wages: Workers are exploited and not paid a fair wage for their labour. They need protection because of their low wages. Therefore fair wages should be paid to them so that their livelihood can be put on ease at some point.

b) Safety: There is no kind of safety provided to the workers working in the mines or fireworks factories. They face great risk of their life. Therefore security and attention must be rendered to them.

c) Health: The workers that work at unhygienic places and specially for infinite hours are found in the unorganized sectors and their health is at risk which must be the matter of deep consideration.

Besides these issues a large number of people are employed on their own. For example- sellers on the street or repair workers. Cobblers, vendors etc.

Education must be at the top in the to do list of government if it wants to improve or increase the job opportunities in any area of any city. Without education no one will hire any illiterate person for work. If a person wants to work then he will have to generate skills and open up the mind to grab more and more things. More and more companies need to be brought under organised sector in order to generate more employment in the city. Basically if a person is educated having great skills then nothing is impossible for him. The more companies are brought the more jobs will be provided to the workers with higher and more secure wages. The government must provide loans and aid to companies transferring from unorganized to organized sectors.

(i) In the year 1950

Total GDP (In 1950) = 80, 000 + 19, 000 + 39, 000

= 1, 38, 000 crore

Share (Primary sector) =

Share (Secondary sector)

Share (Tertiary sector)

In the year 2011

Total GDP (In 2011) = 8, 18, 000 + 12, 49, 000 + 28, 18, 000

= 4, 885, 000 crore

Share (Primary sector) =

Share (Secondary sector)

Share (Tertiary sector)

(ii)

(iii) The conclusion can be drawn on behalf of results that the share of the tertiary sector in the GDP has almost doubled, while the GDP of the primary sector has been halved almost and the same situation is with the secondary sector which has grown up by about 10 % in the last five years. So, we saw that how the GDP of all the three sectors is changing and specially the much more change have been seen in the GDP of tertiary sector.