NIOS STD X Economics Ch 20 sectoral aspets

1. Sectoral Aspects of
Indian Economy

2. • To earn a livelihood people take up different types of jobs or activities based on
their education, skill, family traditions etc.
• We can classify them into three different sectors of economy :
• Classification of Sectors :
Primary
Sector
Secondary
Sector
Tertiary
Sector
Agriculture, Forestry, Fishery, Mining
Quarrying.
Manufacturing, Constructions,
Gas, Water and Electric Supply
Trade, Hotels, Transport, Storage,
Banks, Real Estate,
Communications, Public services
etc.

4. Primary Sector
1. Agriculture and allied activities : cultivation of food items and non-
food items.
People living in villages work on fields to raise crops.

5. LIVESTOCK
Rearing of animals and birds for livelihood is known as
livestock occupation.
E.g.. Poultry and dairy farming

6. • 2. Fishery : Some people catch fish from
ponds, lakes, rivers etc. and sell them in
the market.

7. 3. Forestry : Some people earn their living by collecting forest products like firewood,
timber, honey, herbal medicines. etc. and selling them, in the market.
Collecting honey
Timber, fire wood
Fruits and flowers
Medicinal plants

8. 4. Mining and Quarrying : working in mines and quarries to
extract minerals.

9. • The primary sector includes the following –
• 1. Agriculture and allied activities : cultivation of food items and non-
food items.
• 2. Fishery : catching fish from ponds, lakes, rivers etc and selling
them in the market.
• 3. Forestry : collection of forest products like firewood, medicines etc
to sell in the market.
• 4. Mining and Quarrying : working in mines and quarries to extract
minerals.
Primary Sector

11. Secondary Occupation:
The occupation that produces useful commodities by
processing the raw materials obtained from primary occupation
are known as secondary occupation.
Diamond industry Carpenter

12. The secondary sector
• The secondary sector includes the following –
• 1. Manufacturing : production of goods in small scale
and large scale industries.

13. • 2. Construction : constructing buildings, homes, roads, dams,
parks, bridges, airports etc.
• 3. Supply of electricity, water and gas : production and supply of
these three essential services is a part of this sector.
• Electricity Water and Gas

14. The secondary sector includes the following –
1. Manufacturing : production of goods in small scale and large
scale industries.
2. Construction : constructing buildings, homes, roads, dams,
parks, bridges, airports etc.
3. Supply of electricity, water and gas : production and supply of
these three essential services is a part of this sector.

15. Small Scale Industry :
1.An industry which is setup by spending less than Rs. 25 lakh on plants and
machinery .
2.These mostly use labour intensive technology.
3.e.g. cottage industriy, handloom industry, handicrafts industry etc.
Large scale industry:
1.These are industries that need huge amount of investment .
2.Employs large number of people.
3.It uses capital intensice technology.
4. e.g. Car industry, iron and steel industry etc.

17. In tertiary occupations no material is
manufacture or obtained .
They do not participate directly in the
production.
Tertiary occupation provides all the
necessary services .
Trade
Transport
Storage
Bank
Insurance
Communication
Health Service
Education
Entertainment etc.

18. The tertiary sector also called the service sector includes the following –
1. Trade, hotels and restaurants.
2. Transport, storage and communication.
3. Banking and insurance.
4. Real estate and business services.
5. Public administration (law & order)
6. Other services.

19. The role and importance of the primary sector.
1) Share in national income
At the time of independence, 50% of national income came from agriculture.
This share has reduced in the past years.
2) Providing employment
It is the occupation of the largest section of people in the country.
50% of the population is engaged in agriculture.
3) Providing food to millions
Food is the most basic requirement of life and is provided by agriculture.
The increasing population also needs more production of food grains.
4) Providing raw materials to industries
Manufacturing industries in the secondary sector get their raw materials from
primary sector.
For example- sugar industry needs sugarcane, textile industry needs cotton.
Production of paper requires a special type of grass and bamboo.
Industries like pickles, jams, juices etc. survive because of raw materials
from primary sector.

20. The role and importance of the Secondary sector.
1) Share in National Income
Production in small scale and large scale industries has been increasing
very fast.
As a result share of secondary sector in national income has doubled in
the past years.
2) Providing employment After independence, number of people shifting
from agriculture to manufacturing sector has increased.
In cities and urban areas, employment is mainly provided by secondary
sector.
3) Creation of infrastructure
Building infrastructure like roads, bridges, dams, railways, highways etc
requires huge machinery and equipment.
These are manufactured in the secondary sector.
4) Providing consumer goods
Consumer goods used by households like toothbrush, soap, shoes,
scooter etc are produced in this sector.
As consumers, we have a wide range of brands to choose from because
of growth in this sector.

21. The role and importance of tertiary sector or service sector.
1)Share in National Income
Among all the three sectors, share of the tertiary sector to national
income is the maximum.
Main contribution comes from trade, hotels and financial services like
banking and insurance.
2)Providing employment
The service sector provides a wide variety of jobs to choose from the fields
of arts, science, commerce, law etc.
The higher salaries in this sector also attracts more people to this
sector.
Also, increase in the number of educated people has led to growth of this
sector.
3)Attracting funds from foreign countries
Inflow of foreign money into the country is very important for growth.
The service sector attracts foreign money into the country in the areas of
banking, hotels, insurance, transport etc.
The growth of computer industry in our country has also attracted foreign
funds.
4)Contribution to exports
Selling our goods to foreign countries is a major source of income.

22. The tertiary sector also called the service sector
includes the following –
1. Trade, hotels and restaurants.
2. Transport, storage and communication.
3. Banking and insurance.
4. Real estate and business services.
5. Public administration (law & order)
6. Other services.

23. 1) Primary sector - dependent on secondary sector
for consumer goods and raw materials.
Primary sector - dependent on tertiary sector
for services like transport, communication,
banking etc.
2) Secondary sector- dependent on primary sector
for food and raw materials.
Secondary sector- dependent on tertiary sector
for services like transport,
communication, banking etc.
3) Tertiary sector - dependent on primary sector
for food.
Tertiary sector - dependent on secondary sector
for consumer goods and equipments.

24. Occupational Distribution of working Population in India (percentage)
in 2009-10
(i) Agriculture 50.19 (Largest share)
(ii) Mining and quarrying 0.61
(iii) Manufacturing 13.33
(iv) Electricity, water etc 0.33
(v) Construction 6.10
(vi) Trade, Hotels etc. 13.18
(vii) Transport, storage etc 5.06
(viii) Financial, business services etc. 2.22
(ix) Other services etc. 8.97

25. Contribution of the different sectors to National Income and employment
Primary Sector Secondary sector Tertiary Sector
Share in National Income 15% 28% 55.20%
Employment share 50% 20.60% 29.40%
2009 -2010 Data from Economic survey

26. The Inter relationship between the three Sectors