The document discusses different ways to measure and categorize economic sectors. It explains that GDP measures the total value of final goods and services produced, not just the number of items. Historically, countries shifted from primarily agricultural economies to those focused more on industry and now services. Tertiary sectors like services have grown the most as countries develop and incomes rise. Most employment remains in primary sectors like agriculture, though disguised unemployment is common where people are underemployed. Various policies aim to generate more rural employment, such as infrastructure development and social programs. Economic sectors can also be divided based on working conditions and ownership models.

3. For developing these sectors

7. How to
count
Goods and
Services ?
Values of goods and
services are taken
rather than adding up
the actual numbers.
Total value of wheat
= Rs 80,000.
Total value of
coconut = Rs 20,000.

8. How to decide the value of goods in
secondary sector ?
• Farmer Flour mill Biscuit factory
Packed biscuits.
Final value counted  includes intermediate
values.
Wheat
Rs. 8/kg
Grinds
Rs. 10/kg
Use flour, sugar etc
Rs. 20 per packet

9. Gross
Domestic
Product
(GDP)
• The value of final goods and
services produced in each sector
during a particular year provides
the total production of the
sector for that year.
• The sum of production in the
three sectors give what is called
the Gross Domestic Product
(GDP) of a country.

10. Historical
Change in
Sectors.
• Initially primary sector was the most
important sector of the economic
activity.
• With growth of primary sector and
technology new methods of
manufacturing were introduced.
Secondary sector gradually
became most important in total
production and employment.
• In the past hundred years there
has been a further shift from secondary
to tertiary sector in developed
countries.

11. Graph to
show GDP by
Primary,
Secondary
and Tertiary
Sectors

12. Rising Importance of Tertiary Sector
in Production.
• Basic services of a country are provided by Tertiary sector.
• Development of agriculture and industry
leads to development of Tertiary sector.
• Rising income level demands better services provided by
Tertiary sector.
• Demand of information and
communication technology services led to the growth of
Tertiary sector.

13. Where are most of the people
employed ?
• Primary sector is the
largest employer in the
country.

14. Disguised
Unemployment
• Kind of unemployment in which
there are people who are visibly
employed but are actually
unemployed.
• This situation is also known as ,'
Hidden Unemployment .'
• Disguised unemployment is also
known as under employment.
• This situation is found in
agriculture.

15. Open
Unemployment.
• Kind of
unemployment which is
visible and people have
no work to do.

16. How to
create more
employment
in rural
areas ?
• By providing loans to construct well to
get irrigation facilities.
• By construction of dams and canals.
• By investing money in transportation
and storage of crops.
• Providing credit at low interest rate
through local banks.
• Setting up a pulse meal, cold storage
and processing industries of vegetables
and agricultural produce.
• Opening more schools and hospitals.
• Encouraging tourism industry and
regional craft industry.

17. Mahatma Gandhi
National Rural
Employment
Guarantee Act
2005 (MGNREGA
2005)
• All those who are able to
and are in need of work
in rural areas are
guaranteed 100 days of
employment in a year by
the government.

18. Division of
sectors on the
basis of working
condition.

19. How to
protect
workers in
the
Unorganized
Sector ?
• Minimum wages act should be passed
and enforced strictly.
• Safety norms must be strictly
applicable in the work place specially in
mining works.
• Health insurance must be made
mandatory in the unorganized sectors.
• Arranging seats, agricultural inputs,
credit, storage facilities and marketing
outlets for the small farmers.
• In urban areas, government should
help small scale
industries in procuring raw material and
marketing of goods.
• Interest of casual workers in rural and
urban areas must be protected by law.

20. Division of sectors
on the basis of
ownership.