Solutions of Chapter-2: Sectors of the Indian Economy

NCERT Solutions For Class 10 Economics Chapter-2 Sectors of the Indian Economy– This article includes free NCERT Solutions For Class 10 Economics Chapter 2 Sectors of the Indian Economy to help students of Class 10 learn the solutions and ace their exams.

It has been developed by the subject matter experts at GFG, according to the latest CBSE Syllabus 2023-24, and guidelines to help the students of Class 10 create a solid conceptual base for Class 10 Economics Chapter 2 Sectors of the Indian Economy.

The solutions to all the exercises in Class 10 Economics Chapter 2 Sectors of the Indian Economy of your NCERT textbook have been collectively covered in NCERT Solutions Class 10 Social Science.

The solutions for Chapter 2 Sectors of the Indian Economy are provided below, and students can refer to NCERT Solutions for Class 10 for other subjects as well.

Exercise Pages No 35- 37

1. Fill in the blanks using the correct option given in the bracket:

(i) Employment in the service sector _________ increased to the same extent as production. (has / has not)

(ii) Workers in the _________ sector do not produce goods. (tertiary / agricultural)

(iii) Most of the workers in the _________ sector enjoy job security. (organised / unorganised)

(iv) A _________ proportion of labourers in India are working in the unorganised sector. (large / small)

(v) Cotton is a _________ product and cloth is a _________ product. [natural /manufactured]

(vi) The activities in primary, secondary and tertiary sectors are_________ [independent / interdependent]

Answer:

(i) Employment in the service sector has increased to the same extent as production.

(ii) Workers in the tertiary sector do not produce goods.

(iii) Most of the workers in the organised sector enjoy job security.

(iv) A large proportion of labourers in India are working in the unorganised sector.

(v) Cotton is a natural product and cloth is a manufactured product.

(vi) The activities in primary, secondary, and tertiary sectors are interdependent.

2. Choose the Most Appropriate Answer.

(a) The sectors are classified into public and private sector on the basis of:

(i) employment conditions

(ii) the nature of economic activity

(iii) ownership of enterprises

(iv) number of workers employed in the enterprise

(b) Production of a commodity, mostly through the natural process, is an activity in _________ sector.

(i) primary

(ii) secondary

(iii) tertiary

(iv) information technology

(c) GDP is the total value of _________ produced during a particular year.

(i) all goods and services

(ii) all final goods and services

(iii) all intermediate goods and services

(iv) all intermediate and final goods and services

(d) In terms of GDP the share of tertiary sector in 2013-14 is between _________ per cent.

(i) 20 to 30

(ii) 30 to 40

(iii) 50 to 60

(iv) 60 to 70

Answer:

(a) (iii) ownership of enterprises

(b) (i) primary

(c) (ii) all final goods and services

(d) (iv) 60 to 70

3. Match the following:

Problems faced by farming sector Some possible measures

1. Unirrigated land (a) Setting up agro-based mills

2. Low prices for crops (b) Cooperative marketing societies

3. Debt burden (c) Procurement of food grains by government

4. No job in the off season (d) Construction of canals by the government

5. Compelled to sell their grains to the local traders soon after harvest (e) Banks to provide credit with low interest

Answer:

Problems faced by farming sector Some possible measures

1. Unirrigated land (d) Construction of canals by the government
2. Low prices for crops (c) Procurement of food grains by government
3. Debt burden (e) Banks to provide credit with low interest
4. No job in the off-season (a) Setting up agro-based mills
5. Compelled to sell their grains to the local traders soon after harvest (b) Cooperative marketing societies

4. Find the odd one out and say why.

(i) Tourist guide, dhobi, tailor, potter

(ii) Teacher, doctor, vegetable vendor, lawyer

(iii) Postman, cobbler, soldier, police constable

(iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio

Answer:

(i) Potter

(ii) Vegetable Vendor

(iii) Soldier

(iv) MTNL

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

Complete the table. What is the percentage of workers in the unorganised sector in this city?

Answer:

So, the percentage of workers in the unorganised sector in this city is 85%.

6. Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.

Answer:

Yes, the classification of economic activities into primary, secondary, and tertiary sectors is useful because it helps us understand how different types of jobs contribute to the economy.

1. Primary Sector: This sector includes activities like farming, fishing, mining, and forestry. These activities involve directly extracting natural resources from the Earth. Understanding the primary sector helps us appreciate the importance of agriculture and raw material extraction in providing food and materials for other industries.
2. Secondary Sector: The secondary sector involves manufacturing and processing activities. This includes turning raw materials from the primary sector into finished products. Knowing about the secondary sector helps us understand how goods are produced and how industries contribute to economic growth and employment.
3. Tertiary Sector: The tertiary sector consists of services like education, healthcare, banking, transportation, and entertainment. These activities do not produce physical goods but provide various services essential for society’s functioning. Recognizing the tertiary sector’s significance helps us appreciate the role of services in enhancing quality of life and driving economic development.

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 which should be examined? Discuss.

Answer:

In each sector discussed in the chapter—primary, secondary, and tertiary—employment and GDP are crucial indicators of economic performance and social well-being. However, focusing only on these metrics may overlook other important issues that also need to be examined:

1. Primary Sector (Agriculture, Mining, etc.):
   • Employment and GDP: Employment in the primary sector indicates the livelihoods of a significant portion of the population, while the sector’s contribution to GDP reflects its economic significance.
   • Other Issues: Environmental sustainability, land degradation, water scarcity, and farmer welfare are critical concerns. Additionally, issues such as access to markets, agricultural modernization, and fair trade practices are important for rural development and food security.
2. Secondary Sector (Manufacturing, Construction, etc.):
   • Employment and GDP: Employment in manufacturing and construction provides livelihoods for many and contributes significantly to GDP through industrial production.
   • Other Issues: Worker safety, labor rights, industrial pollution, resource depletion, and sustainable manufacturing practices are important considerations. Ensuring decent working conditions, promoting technological innovation, and reducing environmental impacts are also vital for sustainable industrial growth.
3. Tertiary Sector (Services, Trade, etc.):
   • Employment and GDP: The tertiary sector often dominates modern economies, providing a wide range of services and contributing substantially to GDP.
   • Other Issues: Quality of services, access to essential services (like healthcare and education), income inequality, and informal employment are significant concerns. Addressing issues such as social inequality, access to affordable services, and improving service delivery mechanisms are essential for inclusive growth and social development.

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:

A long list of various types of work adults may engage in for a living:

1. Teachers
2. Doctors
3. Engineers
4. Lawyers
5. Accountants
6. Farmers
7. Fishermen
8. Construction workers
9. Plumbers
10. Electricians
11. Artists
12. Musicians
13. Chefs
14. Waiters/waitresses
15. Retail workers
16. Salespersons
17. Bus/taxi drivers
18. Pilots
19. Nurses
20. Pharmacists
21. Scientists
22. IT professionals

1. Bankers

1. Real estate agents
2. Journalists

These professions can be classified based on various criteria:

1. Sector: Primary (e.g., farmers), Secondary (e.g., construction workers), Tertiary (e.g., doctors).
2. Education Level: Professional (e.g., doctors, lawyers), Skilled (e.g., electricians, plumbers), Unskilled (e.g., cleaners, laborers).
3. Industry: Healthcare (e.g., doctors, nurses), Education (e.g., teachers, professors), Technology (e.g., IT professionals, software engineers).
4. Formal vs. Informal: Formal (e.g., bankers, accountants), Informal (e.g., street vendors, domestic workers).
5. Employment Status: Full-time (e.g., teachers, doctors), Part-time (e.g., retail workers, freelancers), Self-employed (e.g., entrepreneurs, consultants).
6. Income Level: High-income (e.g., doctors, lawyers), Middle-income (e.g., teachers, engineers), Low-income (e.g., cleaners, laborers).

9. How is the tertiary sector different from other sectors? Illustrate with a few examples.

Answer:

The tertiary sector, also known as the services sector, differs from other sectors because it provides services instead of producing goods. The tertiary sector’s activities help develop the primary and secondary sectors by supporting the production process. Some examples of the tertiary sector:

• Transportation: Supports the production process by moving goods from one place to another
• Banking: Provides credit to industrialists and agriculturists
• Storage: Makes goods available when needed by storing them in godowns or cold storage
• Information technology: Includes software companies, call centers, ATM booths, and internet cafes
• Personal services: Includes cobblers, washermen, and barbers.

10. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.

Answer:

Disguised unemployment, also known as hidden unemployment, is a situation where more people are employed than is necessary for a sector or occupation to function efficiently. In this situation, the additional workers have little to no productivity. Disguised unemployment does not impact the aggregate output of an economy.

Examples of disguised unemployment in urban and rural areas:

Urban areas: When painters, plumbers, and electricians are unable to find work on a daily basis and work less than their potential.

Rural areas: When more laborers work on a small piece of land because they don’t have any other work. For example, if a family of nine people work on the same agricultural plot, but four people could be withdrawn without reducing the output, then those four people are experiencing disguised unemployment.

11. Distinguish between open unemployment and disguised unemployment.

Answer:

The difference between open unemployment and disguised unemployment.

12. “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:

The statement that the tertiary sector is not playing a significant role in the development of the Indian economy is not true. In fact, the tertiary sector, also known as the service sector, is the largest sector in India in terms of GDP contribution. It has contributed significantly to the Indian economy, especially in the last two decades. Some reasons why the tertiary sector plays a significant role in the development of the Indian economy:

• It supports the primary and secondary sectors
• It contributes a lot to the country’s national income
• It provides maximum employment opportunities
• It includes education, which is the basis of everything
• It includes services like transport, storage, communications, banking, and administrative work
• It has emerged as the largest producing sector over the last four decades (1970-2010)
• The growth in the service sector can be attributed to various factors such as the need for basic services, introduction of new services, development of primary and secondary activities, and increase in demand for services.

13. Service sector in India employs two different kinds of people. Who are these?

Answer:

The service sector in India employs two types of people: primary workers and ancillary workers:

• Primary workers: Provide services directly
• Ancillary workers: Provide services to the primary workers

Both types of workers play important roles in the service sector, but they may have different pay scales, working conditions, and access to benefits and protections.

14. Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.

Answer:

Yes, workers in the unorganized sector are exploited in many ways:

• Low wages: Workers are often paid low wages that are not regular
• No benefits: Workers are not given any extra benefits, such as paid leave, holidays, or sick leave
• No job security: Workers can be fired at any time without reason
• No overtime pay: Workers are not paid for extra time
• No unions: Workers are not allowed to form unions
• Long hours: Workers may have to work long hours
• Unhygienic conditions: Workers may have to work in unhygienic conditions.

15. How are the activities in the economy classified on the basis of employment conditions?

Answer:

Activities in the economy are classified based on employment conditions into two categories:

1. Organized Sector: Activities in this sector involve formal employment arrangements with clear terms and conditions, including job security, benefits, and legal protections for workers. Examples include jobs in government agencies, large corporations, and registered enterprises where labor laws are typically enforced.
2. Unorganized Sector: Activities in this sector involve informal employment arrangements characterized by lack of job security, minimal benefits, and limited legal protections for workers. Workers in the unorganized sector often engage in low-wage, casual, or self-employment jobs with irregular income and precarious working conditions. Examples include street vendors, domestic workers, small-scale farmers, and daily wage laborers in construction and agriculture.

16. Compare the employment conditions prevailing in the organised and unorganised sectors.

Answer:

Comparison of the employment conditions prevailing in the organised and unorganised sectors are:

17. Explain the objective of implementing the NREGA 2005.

Answer:

The objective of implementing the National Rural Employment Guarantee Act (NREGA) 2005 are as follows:

• Providing 100 days of guaranteed wage employment annually to rural households.
• Alleviating rural poverty and distress by offering livelihood security.
• Focusing on creating productive assets and rural infrastructure.
• Empowering women by ensuring their participation and equal wages.
• Promoting sustainable development through eco-friendly works.
• Enhancing livelihood security and purchasing power of rural households.
• Ensuring social inclusion of marginalized communities.
• Facilitating decentralized planning and implementation.
• Ensuring transparency, accountability, and grievance redressal.

18. Using examples from your area compare and contrast that activities and functions of private and public sectors.

Answer:

Private Sector

• Activities: Profit-driven businesses like supermarkets and IT companies.
• Functions: Focus on efficiency, innovation, and customer satisfaction to maximize profits.

Public Sector

• Activities: Government-run institutions like public schools and hospitals.
• Functions: Provide essential services to the public, prioritize community needs over profits.

Comparison

• Ownership: Private sector owned by individuals/companies; public sector owned by the government.
• Objectives: Private sector maximizes profits; public sector serves public interest.
• Funding: Private sector relies on investments; public sector funded by government.
• Accountability: Private sector accountable to shareholders/customers; public sector accountable to government/public.
• Flexibility vs. Regulation: Private sector more flexible; public sector subject to government regulations.

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

Answer:

20. Give a few examples of public sector activities and explain why the government has taken them up.

Answer:

The government takes up public sector activities to benefit people across the nation, and these activities require large investments. The government can raise money through taxes, which private players may find difficult to do. Private sector players may also charge high prices for these services, while the government can provide them at affordable rates. Some examples of public sector activities:

• Water and electricity: The government provides water and electricity at low rates to ensure that basic amenities are available to everyone.
• Transportation: The government provides railways to ensure cheap transportation across the country.
• Health services: The government provides quality health services.
• Irrigation: The government arranges irrigation through dams.
• Infrastructure: The government builds roads, railways, harbors, and bridges

21. Explain how public sector contributes to the economic development of a nation.

Answer:

The public sector can contribute to a nation’s economic development in many ways, including:

• Infrastructure Development: Public sector investments in infrastructure such as roads, bridges, and utilities stimulate economic activity and facilitate business operations.
• Employment Opportunities: Public sector projects create job opportunities, reducing unemployment and increasing consumer spending.
• Social Services: Provision of essential services like healthcare and education improves the population’s health and productivity, contributing to economic growth.
• Research and Development: Public sector funding for research and development drives innovation, leading to technological advancements and increased competitiveness.
• Stability and Regulation: Public sector institutions ensure market stability through regulation, safeguarding against market failures and promoting fair competition.

22. The workers in the unorganised sector need protection on the following issues : wages, safety and health. Explain with examples.

Answer:

Workers in the unorganized sector need protection on the following issues:

• Wages: Workers in the unorganized sector often receive low wages and may face exploitation by employers. For example, agricultural laborers may be paid below minimum wage standards, leading to financial insecurity and poverty.
• Safety: Many workers in the unorganized sector work in hazardous conditions without proper safety measures. For instance, construction laborers often lack safety equipment and training, increasing the risk of accidents and injuries on the job.
• Health: Workers in sectors like domestic work and street vending may lack access to healthcare benefits and face health risks due to poor working conditions. For example, domestic workers may be exposed to harmful chemicals while cleaning, leading to respiratory problems and other health issues.

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 (1997-1998) was Rs 60,000 million. Out of this Rs 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:

The data presented in a table format:

To generate more employment in the city, several strategies could be considered:

• Infrastructure development projects like roads and utilities create jobs in construction.
• Supporting small and medium enterprises (SMEs) fosters entrepreneurship and job creation.
• Promoting industries through incentives and subsidies stimulates employment growth.
• Skill development programs enhance workforce employability and meet industry demands.
• Investment in technology and innovation drives job creation in high-tech sectors.
• Tourism development attracts visitors and creates jobs in hospitality and tourism.
• Green initiatives create employment in environmentally sustainable sectors.
• Support for informal sector workers improves livelihoods and formalizes employment.
• Public-private partnerships leverage resources for infrastructure and job creation.
• Enhancement of education and healthcare services increases employment opportunities.

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

(i) Calculate the share of the three sectors in GDP for 2000 and 2013.

(ii) Show the data as a bar diagram similar to Graph 2 in the chapter.

(iii) What conclusions can we draw from the bar graph?

Answer:

(i) Share of sectors in GDP

For 2000:

• Primary sector share = (52,000 / (52,000 + 48,500 + 1,33,500)) * 100% ≈ (52,000 / 2,34,000) * 100% ≈ 22.22%
• Secondary sector share = (48,500 / (52,000 + 48,500 + 1,33,500)) * 100% ≈ (48,500 / 2,34,000) * 100% ≈ 20.73%
• Tertiary sector share = (1,33,500 / (52,000 + 48,500 + 1,33,500)) * 100% ≈ (1,33,500 / 2,34,000) * 100% ≈ 57.05%

For 2013:

• Primary sector share = (8,00,500 / (8,00,500 + 10,74,000 + 38,68,000)) * 100% ≈ (8,00,500 / 57,42,500) * 100% ≈ 13.92%
• Secondary sector share = (10,74,000 / (8,00,500 + 10,74,000 + 38,68,000)) * 100% ≈ (10,74,000 / 57,42,500) * 100% ≈ 18.68%
• Tertiary sector share = (38,68,000 / (8,00,500 + 10,74,000 + 38,68,000)) * 100% ≈ (38,68,000 / 57,42,500) * 100% ≈ 67.40%

(ii) Bar diagram

(iii) Conclusions

• The tertiary sector dominates the GDP in both years, indicating the economy’s shift towards services.
• There’s a notable decline in the primary sector’s contribution over the years, reflecting a diminishing role of agriculture.
• The secondary sector’s share has increased slightly, indicating some industrial growth, although it still lags behind the tertiary sector.

Chapter 2 of “Sectors of the Indian Economy” discusses India’s primary, secondary, and tertiary sectors and their roles in the economy. It emphasizes the tertiary sector’s increasing dominance and the challenges faced by the primary and secondary sectors. The chapter underscores the need for balanced development across sectors and strategies for promoting employment. It also addresses the significance of the informal sector and the importance of recognizing its contributions. Additionally, it explores ways to address sectoral imbalances and promote inclusive growth.

• Sectors of Indian Economy
• Activities of 3 Main Sectors of Indian Economy
• Comparing the Three Sectors
• Role of Service Sector in Indian Economy
• Tertiary Sector – Meaning, Examples & Potential

What are the sectors of Indian economy?

The sectors of the Indian economy include the primary sector (agriculture and allied activities), the secondary sector (industry), and the tertiary sector (services).

What are the contents of Indian economic development?

The contents of Indian economic development encompass various aspects such as economic growth, sectoral contributions, employment generation, poverty alleviation, infrastructure development, and policy interventions.

How many sectors are in the economy?

There are three main sectors in the economy: the primary sector, the secondary sector, and the tertiary sector.

Which is the most important sector of the Indian economy?

The tertiary sector, comprising services like finance, IT, and healthcare, is the most important sector of the Indian economy, contributing significantly to GDP and employment.

Which sector is the backbone of the Indian economy?

The tertiary sector, including services like finance, telecommunications, and healthcare, is considered the backbone of the Indian economy due to its substantial contribution to GDP, employment, and overall economic growth.