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SECTORS OF INDIAN ECONOMY.pptx grade 10th

Grade 10th

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BY Ms. Sanghamitra Dash PGT Social science
ECONOMIC ACTIVITIES • Human activities that are connected with the production, distribution and consumption of goods and services are called economic activities. Economic activities are monetarily rewarded.
On the basis of nature of Economic Activities, Economy is classified in to:
PRIMARY SECTOR All the economic activities which use natural resources and produce natural goods through natural processes together form the Primary sector. Examples: Agriculture, Animal Rearing, Fishing, Lumbering, Mining etc. It supplies raw materials for other sectors. So, it is called Primary Sector. It is also called Agriculture and related Sector
SECONDARY SECTOR All economic activities which use natural goods to produce finished goods through the process of manufacturing together form the secondary sector. Ex:- A carpenter uses a wooden log to produce chair. INDUSTRIAL SECTOR
All economic activities which provide services needed for primary and secondary sectors form the tertiary sector. This sector provides a number of personal services also. It is also called Service Sector.
INTERDEPENDENCE BETWEEN PRIMARY, SECONDARY AND TERTIARY SECTORS (i) Primary Sector provides raw materials needed for agro based industries. (ii) Primary Sector supplies food needed for the people working in the Secondary and Tertiary Sectors. (iii) Secondary Sector supplies fertilizers, pesticides and agricultural machines, needed for the Primary Sector. It also supplies various equipment needed for the service sector.
(iv) Tertiary Sector provides transport, insurance and communication facilities needed for the other two sectors. (v) Each sector creates demand for the products of the other two sectors.
HISTORICAL CHANGE IN SECTORS • (i) In the early stages of development primary sector was dominant. When agriculture developed, some people started doing other activities such as small scale manufacturing, transport, teaching etc. • (ii) In the second stage (more than 100 years later) industrial revolution took place. Factories came up. Many people left agriculture and joined industries. So, secondary sector became the most important sector. • (iii) In recent years, the service sector became the most important sector in total production and also in employment generation.
TWO DIFFERENT WAYS TO FIND OUT WHICH SECTOR IS DOMINATING IN AN ECONOMY CONTRIBUTION TO GDP CONTRIBUTION TO EMPLOYMENT GENERATION
GROSS DOMESTIC PRODUCT(GDP) • Gross Domestic Product(GDP) is the money value of all final goods and services produced in a country in an year. GDP Value of Goods produced by Primary Sector Value of Goods produced by Secondary Sector Value of Goods produced by Tertiary Sector
• Final goods are those goods that are directly consumed by the people. • Intermediate goods are the raw materials used in the production of final goods. • The value of intermediate goods is included in the value of final goods. So, their value is not included in GDP to avoid double counting.
DOMINANT SECTOR IN INDIAN ECONOMY ON THE BASIS OF CONTRIBUTION TO GDP IN 1973-74, PRIMARY SECTOR MADE THE HIGHEST CONTRIBUTION TO GDP. SO IT WAS DOMINANT. IN 2013 – 14, TERTIARY SECTOR MADE THE HIGHEST CONTRIBUTION TO GDP. SO TODAY, TERTIARY SECTOR IS DOMINANT IN INDIAN ECONOMY. UNLIKE, DEVELOPED COUNTRIES , SECONDARY SECTOR NEVER BECAME DOMINANT IN INDIA.
REASONS BEHIND RAPID GRWTH OF SERVICE SECTR DEVELOPMENT OF AGRICULTURE AND INDUSTRY CREATED DEWMAND FOR SERVICES LIKE TRANSPORT, BANKING, IUNSURANCE ETC. THE GOVERNMENT INVESTED HEAVILY ON BASIC SERVICES LIKE EDUCATION, HEALTH AND POLICE. INCREASE IN INCOME CREATED DEMAND FOR PRIVATE SCHOOLS, PRIVATE HOSPITALS, EATING OUT, TOURISM ETC. NEW SERVICES BASED ON IT HAVE DEVELOPED MNCs HAVE INVESTED HEAVILY ON SERVICES LIKE BANKING AND INSURANCE
SERVICE SECTOR EMPLOYS DIFFERENT KINDS OF PEOPLE • Some service sector organizations employ educated and skilled workers like teachers, doctors, lawyers, etc….They are paid well. • They also enjoy many other benefits. • Some other service sector workers are uneducated and unskilled. Ex: Washer men, Barbers, Rickshaw pullers, Auto rickshaw drivers, domestic servants etc… • They are poorly paid and they do not enjoy any benefits.
DOMINANT SECTOR IN INDIAN ECONOMY ON THE BASIS OF CONTRIBUTION TO EMPLOYMENT PRIMARY SECTOR IS DOMINANT. IT CONTINUES TO BE THE LARGEST PROVIDER OF EMPLOYMENT OPPORTUNITIES IN INDIA
WHY IS INCOME LOW IN PRIMARY SECTORS? • PRIMARY SECTOR : • 44% OF WORKERS PRODUCE LESS THAN 12% OF GDP – SO, INCOME PER HEAD IS VERY LOW. • SECONDARY AND TERTIARY SECTORS: • 66 % OF WORKERS PRODUCE 88% OF GDP. SO, INCOME PER HEAD IS HIGH. • Nearly half of workers are in Primary Sector but they produce only one sixth of GDP
Why do Primary Sector continues to be the largest provider of Employment Opportunities? • Secondary and Tertiary Sectors failed to create enough employment opportunities. • Output increased by nine times in Secondary Sector. But, employment opportunities increased only by three times. • In Tertiary Sector, production increased by 14 times where as employment increased by only five times.
DISGUISED UNEMPLOYMENT(UNDER EMPLOYMENT) • Disguised unemployment refers to a situation in which more workers are engaged in an activity than what are actually needed. • Suppose a family owns one hectare of land. There are 5 workers in the family. All of them are working in the same land. They produce 100 units of rice. Suppose we take out 2 workers from this activity, the output remains the same. So, these 2 were actually unemployed.
Steps to create more employment opportunities in rural India • Banks and other financial institutions should provide loans for modernizing agriculture. This will help the farmer to raise more than one crop in an year. • Small Agro-based industrial units should be set up in rural areas. • Collection centers of agricultural products should be set up in rural area. • All the children should be brought to the school. So, educational sector can provide jobs to many. • Hospitals and Health care centers should be set up in every village. • Tourism, development of regional craft industries or new services like IT should be developed. • MNREGA 2005 should be strictly implemented.
• National Rural Employment Guarantee Act 2005 (NREGA 2005) was passed by the government in order to provide at least 100 days of employment to all those who are able and willing to work. • If the government fails in providing employment, the unemployed should be given allowance. • So, this act is referred to as “Right to Work”. • The aim of NREGA 2005 is to reduce poverty and unemployment in the rural areas. • It aims at developing community assets also.
STEPS TO CREATE EMPLOYMENT IN URBAN AREAS • Educated people should be given financial and technical help to find self employment. • Efforts should be made to promote small scale industries. Industrial estates can be set up. • Private capitalists should be given encouragement and support to start new industrial units. Foreign capital can be invited. • Step should be taken to provide education and technical training to develop skill of workers.
• ON THE BASIS OF EMPLOYMENT CONDITIONS THE ECONOMY IS CLASSIFIED IN TO:
ORGANISED SECTOR
• Organised sector consists of those organizations and enterprises which provide regular employment to their workers and follow many rules and regulations. • They work as per the laws such as Factories Act, Minimum Wages Act, Payment of Gratuity Act etc. They provide good salaries to their workers. • Workers also enjoy other benefits such as paid leave, paid holidays, provident fund, pension after retirement, medical facilities, housing facilities etc.
UNORGANISED SECTOR
• Unorganised sector consists of small and scattered units which do not follow any rules and regulations. • They do not provide regular job to their workers. • Workers are poorly aid. • There is no job security. • They do not enjoy benefits such as paid leave, Paid holidays, provident fund, medical facilities etc. • Condition of work is miserable.
ORGANISED SECTOR UNORGANISED SECTOR Large organisations that follow rules, regulations and procedures Small organisations that do not follow rules, regulations and procedures Workers enjoy job security There is no job security Work only for a fixed number of hours. Overtime allowance is given if they work beyond the fixed time They work for longer hours. There is no overtime allowance. Workers enjoy benefits like paid leave, paid holiday, medical and housing facility etc. No such benefits are given. Workers are paid well Wages are generally very low Provident Fund, Gratuity and Pension on retirement are given Such benefits are not available.
STEPS TO PROTECT WORKERS IN THE UNORGANISED SECTOR • i. Small and Marginal farmers and the agricultural workers should be given help by supplying seeds, providing credits, storage and marketing facilities. • ii. Steps should be taken to promote the small industries. They should be given help to collect raw materials and to market the output. • iii. Strict laws should be made to protect the casual workers.
ON THE BASIS OF OWNESHIP ECONOMY IS DIVIDED IN TO:
• The enterprises which are owned and managed by the government constitute the Public Sector. The enterprises which are owned and managed by private individuals constitute the Private Sector. • Public Sector aims at the welfare of the people. The private sector aims at profit. • Basic services and basic and key industries are mostly in public sector. The other services and other goods are produced by the private sector. • Railways, BHEL and HMT are in public sector. Reliance, Tata Motors and Bajaj are in private sector.
IMPORTANCE OF PUBLIC SECTOR • Public sector provides infrastructure like roads, bridges, railways etc. • Public sector provides education and health services. • Basic and Key industries in public sector promote industrial growth in the country. • Public sector is not profit motive. It aims at the welfare of the people. • Profit earned by the public sector units is a source of income for the government. • Large number of people are employed in Public Sector.
Examples of Public sector Activities • Defense production: Arms and ammunition needed for our armed forces are produced by public sector units. Defense production is highly important for providing security to the people. So, the government has brought it under public sector. • Railways: Railways are important for transporting goods and people over long distance. A huge investment was needed to set up a railway network. Private people were not capable of making such huge investments. So the government brought it under public sector.
• iii. Education: Education is important for developing knowledge and skill among the people. So, the government took steps to provide education to the poor people. • iv. Health care: Health care facilities are essential for the people. Health Care should be given at cheap rate to the poorer section of the society. So, the government invested in it.
PUBLIC DISTRIBUTION SYSTEM
• The Government collects food materials from the farmers at the Minimum Support Price. These food materials are distributed to the people at reduced rate. This system is called PDS. • This system ensures food security to the people. Starvation deaths can be avoided. • Farmers are benefited. They can sell food materials to the Government at the MSP. • Food materials can be distributed to the people who are affected by natural calamities.
SECTORS OF INDIAN ECONOMY.pptx grade 10th