sectors of indian economy

1. Sectors of
Economy and their
relative changing
importance
Bini Mariam John

2. Agenda
1 2 3 4 5
Introduction Classification
of human
activities
Gross
Domestic
Product
The changing
important of
the sectors
Conclusion
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3. Introduction
India is one of the largest, if not the
largest economy in the world. It is
predicted to be the second largest
economy in the world by 2050. So,
what contributes to the Indian
economy? To answer this, we need to
divide India’s economy into three
parts and study the sectors of Indian
economy in detail.
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4. Classification of Human
Activities
Classification Economic Activities Non-Economic
Activities

5. Economic Activity
Ownership
1.Private
2. Public
Nature Of
Product
Condition
Of the
Workers
1.Primary
2.Seconda
ry
3.Tertiary
1. Organize
d
2. Un-
organize
d
5

6. 1.Definition
2.Ownership
3.Motive
4.Source Of Capital
5.Employment Benefits
6. Stability
7.Promotions
8.Areas
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Based On
Ownership

7. On the basis of Nature of Product Produced
Primary Sector
1. It produces natural
goods.
2. Goods are
produced by
exploiting from the
nature or by using
natural process.
3. It is the supplier of
raw materials to
secondary sector.
Secondary Sector
1. It produces
manufactured
goods.
2. Goods are
produced through a
process of
manufacturing.
3. It is the consumer
of primary sector.
Tertiary Sector
1. It produces
services.
2. Services are
rendered in
presence of users,
which are intangible
and cannot be
stored for future
used.
3. It assist the primary
and secondary
sector.
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8. Interdependence of 3 Sectors
• All the 3 sectors Primary, Secondary, Tertiary are dependent on each other.
• As all the 3 sectors are interdependent, the product or services reach into the hand of the
consumers
with the collective contribution of all the three sectors.
• For development of 1 sector , development of other sector is very important as they can not
work independently.
• Activities under these 3 sectors produces a large number of goods and services and a large
number of people involved.
• Therefore comparing the performance of 3 sectors is not easy. For this reason the
economists classified into 2 broad groups:
• Intermediate good and Final Goods.

9. Gross Domestic Product
•The sum of the monetary value of final goods
and services produced within a country in a
year is called Gross Domestic Product (GDP)
•WHY ONLY FINAL GOODS?
•Because the final goods already include the
value of all intermediate good or services used
in production of the final good. It is done to
avoid multiple counting of same product or
service.

10. Differences
Open employment
• People are not in work at all.
• They have no income.
• They are in search of employment.
• As it is clearly visible, easier to
solve.
Disguised Unemployment
• People are apparently in work.
• They earn some but less than their
potential.
• As they are in work they do not
search other employment.
• It is not open and hidden therefore
difficult to solve.

11. Reasons for growth of tertiary
sector
1.Increasing demand for basic services.
2.Development of primary and secondary sectors.
3.Increase in disposable income.
4.Introduction of new services.
5.Emergence of new laws.

12. Differences
Organised Sector
• It is a sector where the employment terms
are fixed and regular, and the employees
get assured work.
• The job is regular and has fixed working
hours. If people work more, they get paid
for the overtime by the employer.
• Workers enjoy the security of
employment.
• Employers will get medical and other
benefits.
Un-Organised Sector
• The unorganized sector is characterized
by small and scattered units, which are
largely outside the control of the
government.
• Jobs are low-paid and often not regular.
• Employment is not secure. People can be
asked to leave without any reason.
• No benefits are available for the workers.
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13. 13
Advantage
India
India is the export hub for software services.
The Indian IT outsourcing market is
expected to witness 6-8% between 2021-24’
Robus
t
Deman
d
Competit
ive
Advanta
ge
Policy
Suppo
rt
Increasing
Invest
Large pool of skilled manpower, especially in the areas of
IT& Ites, is
available at low cost. A rapidly increasing the migration of
youth populatio
From agriculture to other sectors will be a boom to the
sector.
The government of India focusing on boosting Make-
In-India initiatives and expanding India’s
entrepreneurial ecosystem across all over sectors.
Services sector is the largest recipient of FDI in India with in
US $ 82 billion between April 2000 and March 2020.

14. The changing important of the
sectors
Structur
al
Transfor
m-ation
Policy
Reforms
Technol
og-ical
advanc
em-
ents
Globaliz
ati-on

15. 15
CONCLUS
ION