NCERT Solutions of Economics for Class 10 Chapter 2 Sectors of Indian Economy


Let’s Work These Out

Question.1. Complete the above table to show how sectors are dependent on each other.
Answer. Both the above statements have different meanings.
(a) The primary sector is dependent on the secondary sector.
(b) The primary sector is dependent on the secondary sector (industrial sector).
(c) The tertiary sector (service sector) is dependent on the primary sector.

Question.2. Explain the difference between primary, secondary and tertiary sectors using examples other than those mentioned in the text.
Answer. On the basis of different examples from the examples given in the chapter, there are following differences between primary, secondary and tertiary sectors :

  1. Primary Sector : When something is produced by using natural resources, it is called the activity of the primary sector. For example- wheat farming, fisheries, collecting forest produce, mining of minerals, cutting wood.
  2. Secondary Sector : This is the sector in which natural products are converted into other forms through the manufacturing process. For example- furniture industry, paper manufacturing industry, cotton textile industry, iron and steel industry etc.
  3. Tertiary Sector : In this sector those activities are included, which help in the development of primary and secondary sectors. It is also known as the service sector. For example- Doctor, Lawyer, Railway, Telecom, Shopkeeper, Business teacher etc.

Question.3. Classify the following list of occupations under primary, secondary and tertiary sectors:

  • Tailor
  • Workers in match factory
  • Basket weaver
  • Moneylender
  • Flower cultivator
  • Gardener
  • Milk vendor
  • Potter
  • Fishermen
  • Bee-keeper
  • Priest
  • Astronaut
  • Courier
  • Call centre employee

Primary Sector

  • Basket weaver
  • Flower cultivator
  • Milk vendor
  • Fishermen
  • Gardener
  • Potter
  • Bee-keeper

Secondary Sector

  • Tailor
  • Workers in match factory

Tertiary Sector

  • Priest
  • Courier
  • Moneylender
  • Astronaut
  • Call centre employee

Question.4. Students in a school are often classified into primary and secondary or junior and senior. What is the criterion that is used? Do you think this is a useful classification? Discuss.
Answer. Students in school are usually divided into primary and secondary sections. The basis of this division depends on their educational level, age group, level of mental development etc. Students from class I to VII are called juniors and students from class VIII to XII are called seniors. This is an appropriate classification because the educational level, age group and level of mental development of senior and junior students are different.

Let’s Work These Out

Question.1. What does the history of developed countries indicate about the shifts that have taken place between sectors?
Answer. The study of the history of most of the developed countries shows that in the initial stages of development, the primary sector has been an important sector of economic activity. As modern technology started being used in the agricultural system, the agricultural sector became economically prosperous, production started increasing and people started getting attracted towards other works as well. The number of craftsmen and traders started increasing and the activities of buying and selling increased. People also got involved in transport, administration and military works. In this stage, most of the produced items were natural products which came in the primary sector and people used to work in this sector. As factories came into existence and factories started spreading, people started working in factories instead of farms. People started consuming good things produced in factories at cheap rates. In this way, gradually the importance of the secondary sector also increased from the point of view of total production and employment. If seen in the last 100 years, there has been a change again from secondary sector to tertiary sector in developed countries.

Therefore, the importance of the service sector has also increased from the point of view of total production.

Question.2. Correct and arrange the important aspects for calculating GDP from this Jumble.

To count goods and services we add the numbers that are produced. We count all those that were produced in the last five years. Since we shouldn’t leave out anything we add up all these goods and services.

Answer. The orderly and correct sequence of the above disorganized phrases will be as follows:

  1. Their numbers are added to calculate the goods and services produced.
  2. Since we should not give up anything, we get the sum of the value of these goods and services.
  3. Calculate all the goods produced in the last five years.

Question.3. Discuss with your teacher how you could calculate the total value of a good or service by using the method of value added at each stage.
Answer. Value Added Method is the process where a certain value is added to a good at every step of production.

For Example : To produce paper, at first, wood is bought at ₹ 500 per tree and then it is sold to the paper miller at ₹ 550, where ₹ 50 were added as his profit, and other resources used are electricity, labour and transport. The miller further produces paper and sells it at ₹ 650 adding his profit and efforts. It is further sold to Wholesaler at a price of ₹ 800. Thereby the cost is increased because of effort made at each step such as salary of the labour, transport, and electricity.

The miller keeps ₹ 150 as his own profit as his transport and efforts were also added. The wholesaler sold the product at ₹ 900 to the retailer, and finally, it was bought by the consumer for ₹ 950. Thus, we see that a certain value was added at each step of production in the form of profit, transportation cost, and individual effort. Thus, the original cost of the product was ₹ 550 and by the time it was launched in the market), it was ₹ 950. The increase in the cost at each step was due to the efforts made and resources used such as human resources, electricity, transport, money, taxes, and machines.

Let’s Work These Out

Answer the following questions by looking at the graph:
Question.1. Which was the largest producing sector in 1973-74?
Answer. In the year 1973-74, the largest producer sector was the primary sector.

Question.2. Which is the largest producing sector in 2013-14?
Answer. The largest producer sector in the year 2013-14 was the tertiary sector.

Question.3. Can you say which sector has grown the most over forty years?
Answer. The highest growth in thirty years was in the tertiary sector.

Question.4. What was the GDP of India in 2013-14?
Answer. The gross domestic product of India in the year 2013-14 was ` 5500000 crore.

Question.5. What does the comparison between 1973-74 and 2013-14 show? What conclusions can we draw from the comparison? Let’s find out.
Answer. The comparison between the years 1973-74 and 2013-14 shows that production has increased in all the three sectors in India, but the maximum production has increased in the tertiary sector. This shows that the tertiary sector in India is fast moving ahead of the primary sector to emerge as the largest sector.

Let’s Work These Out

Question.1. Complete the table using the data given in Graphs 2 and 3 and answer the question that follows. Ignore if data are not available for some years.table 2.2

What are the changes that you observe in the primary sector over a span of forty years?
Answer. After observing Graph 2 and 3 given in the chapter,Graph 2Graph 3

we can conclude:
table 2.2 answerThe share of the primary sector in GDP has decreased in 40 years. This means that the participation of the secondary sector and tertiary sector has increased. The participation of the primary sector in employment has also decreased but this rate has been slow. The participation of the secondary sector and tertiary sector has increased more during this period.

Question.2. Choose the correct answer :
Underemployment occurs when people
(i) do not want to work
(ii) are working in a lazy manner
(iii) are working less than what they are capable of doing
(iv) are not paid for their work
Answer. (iii) are working less than what they are capable of doing

Question.3. Compare and contrast the changes in India with the pattern that was observed for developed countries. What kind of changes between sectors were desired but did not happen in India?
Answer. In India also, like developed countries, significant changes have taken place in various sectors, which are as follows :

  1. There has been a decrease in employment in the primary sector and an increase in employment opportunities in the tertiary sector.
  2. The contribution of the primary sector to the GDP has decreased and that of the secondary and tertiary sectors has increased.
  3. The growth in the contribution of secondary and tertiary sectors in employment and GDP in India is less as compared to developed countries.

Desired changes which have not happened in the sectors of India :

  1. When it was expected that with the development of the economy, the secondary sector would replace the primary sector and increase GDP. Will become the most important sector from the point of view but this has not happened in India. Here the tertiary sector has moved ahead of the secondary sector.
  2. It was also expected that along with development, the participation of the primary sector in employment would decrease and the participation of secondary and tertiary sectors would increase to the maximum, but this did not happen in India.

Even today the primary sector is the largest employer. Sufficient employment opportunities have not been created in the secondary and tertiary sectors.

Question.4. Why should we be worried about underemployment?
Answer. A big problem for every person is when people appear to be employed but in reality they are unemployed. In this situation, more people than necessary are engaged in the same work. Even if those people are removed from that work, there is no effect on the production. This situation is also called hidden or disguised unemployment.

Underemployment: In India it was expected that employment opportunities would increase in all the three sectors (primary, secondary, tertiary) and unemployment would end gradually, but this could not happen. As expected, neither the secondary and tertiary sector has been developed nor proper employment opportunities have been created. It is a matter of concern that lakhs of people are under-employed in India. This situation is generally found in the agriculture sector. Apart from this, under-employment can happen in other sectors. Like casual workers working in the service sector in cities. If these people were working at some other place, then the income earned by them increases their total family income. Thus, on the basis of the conclusion, it can be said that we should think about underemployment because it reduces the income earning capacity of the population, which increases the low standard of living and poverty.

Can you tell?
Question.1. What groups of people do you think are unemployed or underemployed in your area? Can you think of some measures that could be taken up for them?
Answer. If we see from your point of view, the following groups of people are unemployed or under-employed in our area –

  1. agricultural labour families,
  2. Small farmer families,
  3. Painters, carpenters, hawkers, repairmen, builders of houses, people who pull carts on the streets, people who pick up junk, people who carry loads on their heads, etc.

The following measures can be suggested for these

  1. Employment generation programs should be implemented.
  2. Construction of new dams and canals for irrigation, so that many employment opportunities can be created in the agriculture sector.
  3. Promotion of those industries and services by the government in semi-rural areas in which the maximum number of people can be employed.
  4. Providing loans to the unemployed and underemployed at low interest rate so that they can start their small business.
  5. Government should invest capital on transportation and storage of crops or on construction of rural roads. This work can also provide employment to farmers, people engaged in transport and business services.

Let’s Work These Out

Question.1. Why do you think MGNREGA 2005 is referred to as ‘Right to work’?
Answer. MNREGA Mahatma Gandhi National Rural Employment Guarantee Act, 2005 is called Right to Work because it provides 100 days of employment every year to all people in rural areas who are able to work and who are in need of work. If an applicant is not provided employment within 15 days, he is entitled to receive daily employment allowance.

Question.2. Imagine that you are the village head. In that capacity suggest some activities that you think should be taken up under this Act that would also increase the income of people? Discuss.
Answer. In my view from the position of village head, the following activities should be included under this act, which will increase the income of the people-

  1. Roads should be constructed in villages so that agricultural laborers can get employment throughout the year. Apart from this, good roads will help farmers to take their produce to the nearest market.
  2. New dams, wells and canals should be constructed for irrigation, so that employment will be created in the agriculture sector.

Question.3. How would income and employment increase if farmers were provided with irrigation and marketing facilities?
Answer. If irrigation and marketing facilities are made available to farmers, employment and income will increase in many ways-

  1. Irrigation facilities: Due to the abundance of irrigation facilities, farmers will be able to produce more and more crops. The more crops are grown on agricultural land, the more will be the increase in employment and income. In this way, irrigation is an important means of increasing agricultural production, employment and income.
  2. By making marketing facilities easier: By making marketing facilities easier, a farmer can produce crops and sell them easily. This action will not only provide employment to the farmer but also to other people. Transport will also be required to sell the crop, which will generate employment for the transporter as well. Apart from this, when the crop reaches the market, it will be sold, due to which along with business, their income will also increase due to the generation of employment. With the storage facility, the farmers will get an opportunity to sell their agricultural produce at a reasonable price.

Question.4. In what ways can employment be increased in urban areas?
Answer. Employment growth in urban areas can be done in a number of ways. Increase in employment in urban areas Employment can be increased by developing small and cottage industries, making the education system employable, giving special emphasis on vocational education, providing facilities like training and marketing.

kanta and Kamal

Question.5. Do you see the differences in the conditions of work between Kanta and Kamal?
Answer. There is a huge difference in the employment conditions of Kamal and Kanta.

  1. Kanta works only for 8 hours, while Kamal works for 12.30 hours.
  2. Kanta gets a lump sum salary regularly at the end of every month, while Kamal gets wages only for the days he works.
  3. Kanta gets provident fund, medical and any other type of allowance apart from salary, while Kamal does not get any allowance other than wages.
  4. Kanta gets weekly off on Sunday, while Kamal does not get any holiday or weekly off.
  5. Kanta was given an appointment letter while joining the job, whereas no such formal letter was given to Kamal.

Let’s Work These Out

Question.1. Look at the following examples. Which of these are unorganised sector activities?
(i) A teacher taking classes in a school
(ii) A headload worker carrying a bag of cement on his back in a market
(iii) A farmer irrigating her field
(iv) A doctor in a hospital treating a patient
(v) A daily wage labourer working under a contractor
(vi) A factory worker going to work in a big factory
(vii) A handloom weaver working in her house
Answer. The following examples are of unorganised sector:
(ii) A headload worker carrying a bag of cement on his back in a market.
(iii) A farmer irrigating her field.
(v) A daily wage labourer working under a contractor.
(vii) A handloom weaver working in her house.

Question.2. Talk to someone who has a regular job in the organised sector and another who works in the unorganised sector. Compare and contrast their working conditions in all aspects.
Answer. We discussed with our neighbor Harish Agarwal, who has a regular job in the organized sector. After talking to them it came to know that their working hours are fixed and they get salary on the last working day of the month. He was also given an appointment letter at the time of joining the job. Then I talked to my neighbor Ravi Verma, who works in the unorganized sector. After talking to them, we came to know that their working hours are not fixed. They are given daily wages. They are not paid for the day they do not go to work. He had not even received any letter regarding the appointment.

Question.3. How would you distinguish between organised and unorganised sectors? Explain in your own words.

Basis of DifferenceUnorganised SectorOrganised Sector
Meaning The unorganized sector refers to those small and scattered units, which are often outside the state control.Organized sector refers to that enterprise or place of work, where the duration of employment is regular and fixed.
Rules and RegulationsThere are rules and regulations in this sector but they are not followed.Government rules and regulations are followed in this sector.
Conditions of EmploymentIn this, the terms of employment are irregular.In this, the terms of employment are regular.
Nature of WorkIn this, the work is irregular and uncertain and the worker can be asked to leave the work at any time without any reason.In this the work is continuous and the worker cannot be fired without any reason.
WagesIn this the labourers get daily wages.In this, employees and laborers get monthly salaries regularly.
Work DurationHere the working hours are not fixed. As well as there is no provision of payment for additional hours of work.People here work only for fixed hours. If he works for more hours then extra payment is given by the employer for this.
Other BenefitsThere is no system of benefits other than daily wages.Apart from salary, employees also get other benefits, such as provident fund, medical allowances, paid leave, pension etc.
Working ConditionsThe facilities of clean drinking water and safe environment are not available in this area.The facilities of clean drinking water and safe environment are available in this area.

Question.4. The table below shows the estimated number of workers in India in the organised and unorganised sectors. Read the table carefully. Fill in the missing data and answer the questions that follow.
table 2.3(i) What is the percentage of people in the unorganised sector in agriculture?
(ii) Do you agree that agriculture is an unorganised sector activity? Why?
(iii) If we look at the country as a whole, we find that ___(A)___% of the workers in India are in the unorganised sector. Organised sector employment is available to only about ___(B)___% of the workers in India.
Answer. After completing the data, the table looks as follows:
table 2.3 answer(i) Percentage of people engaged in agriculture = \frac{231}{393}[\katex] × 100 = 78.84%
(ii) Agriculture is an unorganized sector activity because the working hours of farmers or landless farmers or laborers engaged in agricultural work are not fixed. They do not have the security of employment. They do not get fixed wages or salary. Apart from this, his income is low and irregular.
(iii) (A) 82.74%, (B) 17.26%

Let’s Work These Out

Question.1. With so many activities taking place around us, one needs to use the process of classification to think in a useful manner. The criterion for classification could be many depending on what we desire to find out. The process of classification helps to analyse a situation.

In dividing the economic activities into three sectors — primary, secondary, tertiary — the criterion used was the ‘nature of activity’. On the basis of this classification, we were able to analyse the pattern of total production and employment in India.

Similarly, we divided the economic activities into organised and unorganised and used the classification to look at employment in the two sectors.

What was the most important conclusion that was derived from the classification exercises?
What were the problems and solutions that were indicated? Can you summarise the information in the following table?table 2.4


SectorCriteria UsedMost Important ConclusionProblems indicated and how they can be tackled
Primary, Secondary, TertiaryNature of ActivityThe tertiary sector contributes the most to GDP, the primary sector continues to be the largest employer.Problem: Underemployment in the agricultural sector.
Solution: This can be tackled by providing irrigation facilities, like transportation, credit,
agro - based industries for farmers.
Organised, UnorganisedEmployment ConditionsMost people are working in the unorganised sector where protection is necessary for them.Problem: Exploitations in the unorganised sector.
Solution: This can be tackled by government protection.
  • Activities based on the direct use of natural resources, agriculture, animal husbandry, mining, fisheries, forest produce are included in the primary sector.
  • The conversion of natural products into other forms through the manufacturing system is included in the secondary sector. Industries, manufacturing, dams, water supply, electricity, etc. are the main activities of the secondary sector.
  • The service sector is included in the tertiary sector. Tertiary sector activities include communication, means of transport, storage, banking, education, health, trade etc.
  • Tertiary sector is very important in India because many services in the country, such as hospitals, educational institutions, post and telegraph service, police stations, courts, rural administrative offices, municipal corporations, defense, transport, banks, insurance companies, etc. come under this.
  • In the organized sector, those enterprises or workplaces come where the period of employment is regular. They are registered by the regional government.
  • In the context of India, it is noteworthy that although there has been a change in the share of all the three sectors in the GDP. The share of the tertiary sector in GDP is more than 60%. But in the field of employment, the number of people working in the tertiary sector is about 27%. Most of the employment in India is obtained from the primary sector.
  • A law has been made to enforce the right to work in India. This is called the National Rural Employment Guarantee Act, 2005. Under this, work is given to those people who are able to work and those who need work, they have been guaranteed 100 days of employment in a year by the government. If the government fails to provide work, then in this situation there is a provision to give unemployment allowance to the people by the government.


Question.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) has not
(ii) agricultural
(iii) organised
(iv) large
(v) natural, manufactured
(vi) interdependent

Question.2. Choose the most appropriate answer.
(a) The sectors are classified into public and private sector on the basis of:

(A) Employment conditions
(B) The nature of economic activity
(C) Ownership of enterprises
(D) Number of workers employed in the enterprise

Answer. (C) Ownership of enterprises

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

(A) Primary
(B) Secondary
(C) Tertiary
(D) Information technology

Answer. (B) Secondary

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

(A) All goods and services
(B) All final goods and services
(C) All intermediate goods and services
(D) All intermediate and final goods and services

Answer. (B) All final goods and services

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

(A) 20 to 30
(B) 30 to 40
(C) 50 to 60
(D) 60 to 70

Answer. (C) 50 to 60

Question.3. Match the following :NCERT Solution Economics Class 10 Q3 Match the tableAnswer. 1. (a)
2. (b)
3. (e)
4. (a)
5. (c)

Question.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. (a) The work of a tourism director is a skilled work, the person doing this work has to study various historical places.
(b) Vegetable seller, who is not getting paid regularly and has to depend on the sale of his vegetables. Nor is he holding an educational degree and is in regular employment from any institution. All other countries require a degree.
(c) Cobbler, as he is working in the unorganized private sector. And it works with its mind. No one has any control over this.
(d) Sahara Airlines comes under the private sector and all others such as MTNL, Indian Railways, All India Radio etc. come under the public sector.

Question.5. A research scholar looked at the working people in the city of Surat and found the following.
Q.5.Complete the table. What is the percentage of workers in the unorganised sector in this city?
Question.6. Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.
Answer. Yes, it can be fully agreed that the division of economic activities into primary, secondary and tertiary sector has a utility. The classification of an economy based on sectors shows that there are three types of economic activities. The sectors related to the primary sector are called agriculture, dairy and mining etc. Every economy derives its sustenance or income from all these resources. As we know that land is a natural resource and at the same time it is also limited. That's why we should stimulate ourselves in construction and industrial activities. For this reason the secondary sector is also considered important. Transport, communication, finance, insurance etc. are required to provide support to primary and secondary. All these services are provided by the tertiary sector. Thus we can say that the division of economic activities into primary, secondary and tertiary sector has an important utility.

Question.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. Every sector covered in this chapter should focus on employment and GDP growth as both these, employment and growth in GDP are very important for economic development. This has also been the primary goal of our five year plans. All the three sectors have contributed significantly to the GDP and employment in the development of the country. Over time, the contribution of all the three sectors has also increased. But the maximum contribution to the GDP has been from the tertiary sector. Employment has increased in all sectors, but still about 60% of India's population is employed in the primary sector. Apart from this, many goals can be achieved by linking each sector to GDP and employment. Such as poverty alleviation, development of modern technology and reducing disparities of development in the economic sector etc.

Question.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. We can classify the adults around who work for livelihood on the following basis
(a) Classification on the basis of nature of work

  1. Primary Sector : Under the primary sector, all those economic activities which are done by the use of natural resources. They are kept in the primary sector, such as agricultural work, mining work, fishing etc.
  2. Secondary Sector : Under the secondary sector, various useful items are manufactured by using various products obtained from the primary sector, such as making cloth from cotton, making sugar from sugarcane, etc.
  3. Tertiary Sector : No goods are manufactured in the tertiary sector but services are provided. These services play an important role in the development of the primary and secondary sector. Under this, banking, insurance, railway communication and transport etc. are included.

(b) Classification on the basis of conditions of employment : On the basis of what are the conditions of employment, we can divide it into two parts i.e. Organized Sector and Unorganized Sector.

  1. Organized Sector : Those activities come in the organized sector in which the period of employment is regular and they have to obey the government rules.
  2. Unorganized Sector : The unorganized sector is out of government control. In this, the period of employment and rules, bye-laws etc. are not fixed.

(c) Classification on the basis of ownership of industries : On the basis of who owns different industries, they can be classified into public and private industries. On the basis of above we can list the people around us in this way:

  1. Farmers : come under primary sector
  2. Government school teachers : Tertiary, organized, come in the public sector
  3. Lawyers : come in tertiary, organized, public sector
  4. Tailors : Tertiary, unorganized, come in public sector
  5. Washermen : come under tertiary, unorganized, private sector
  6. Postmen : Tertiary, organized, come in public sector
  7. Workers : come in tertiary, organized, private sector
  8. Clerk : Tertiary, Organized, comes in public sector

Question.9. How is the tertiary sector different from other sectors? Illustrate with a few examples.
Answer. In the primary and secondary sectors, goods are manufactured, while in the tertiary sector, goods are not produced or manufactured, but services are provided. The activities of the tertiary sector help in the development of the primary and secondary sectors. For example, goods produced in the primary and secondary sectors are taken from one place to another by trucks and trains and sold in the market, etc., by the tertiary sector. Banks, telephones, insurance companies are needed in the activities of the primary and secondary sector. All these are examples of the tertiary sector. Thus the tertiary sector provides services which are used for the development of primary and
secondary sector activities.

Question.10. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Answer. Disguised unemployment refers to a situation in which people appear to be working but in reality their productivity is zero. That is, even if they are removed from their work, there is no effect on the total productivity.
Disguised unemployment is found on a large scale in the agricultural sector in the villages of India. For example, more laborers work on a small piece of land because they do not have any other work. This creates a situation of disguised unemployment. Similarly, disguised unemployment is found in small shops and small businesses in cities.

Question.11. Distinguish between open unemployment and disguised unemployment.
Answer. Open unemployment : Open unemployment is that unemployment, in which the labor force is more in a country but the industrial structure is small, it cannot consume all the labor power, that is, the laborer wants to work but does not get work. This unemployment is found in most of the industrial areas of India.
Disguised or hidden unemployment : This is the situation in which people appear to be engaged in work but in reality they are unemployed. For example, eight people are working on a piece of land, but the production is being done as much as it is done by the work of five people. In such a situation, the three additional persons who are engaged in work are hidden unemployed because their work does not affect the production.

Question.12. “Tertiary sector is not playing any significant role in the development of the Indian economy.” Do you agree? Give reasons in support of your answer.
Answer. Do not agree that the tertiary sector is not playing any important role in the development of the Indian economy. Its importance can be understood by a graph.

Question.13. Service sector in India employs two different kinds of people. Who are these?
Answer. The service sector in India employs two different types of people. This statement is completely true. There are two types of people in India, i.e. highly skilled and educated workers and unskilled and uneducated workers. Highly skilled and educated workers are engaged in the service sector because the service sector is increasing along with modernization. Due to information technology, there is a need for highly skilled workers in the service sector as well. On the other hand, a large number of people are engaged in small shops, repair works, transport etc. These are unskilled and uneducated laborers.

These people are able to make a living with great difficulty and they are engaged in these services because they do not have any other alternative opportunity.

Question.14. Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
Answer. Workers are exploited in the unorganized sector. We agree with this for the following reasons:

  1. The job is not secure for the workers in the unorganized sector, as they can be fired without any reason.
  2. They are given fewer holidays and no payment is made for sick leave etc.
  3. They have to put in extra time for which they are not paid.
  4. In most of the unorganized sector, people get irregular work and when the work is not much, the employer also removes the workers from the job.

Question.15. How are the activities in the economy classified on the basis of employment conditions?
Answer. On the basis of employment conditions, economic activities can be divided into two categories-

  1. Organized Sector : Those enterprises or workplaces come in the organized sector, where the duration of employment is regular. These sectors are registered by the government. They have to follow government rules and regulations. That's why it is called the organized sector. In this, the employees get the benefits of employment security. They are expected to work only for a certain period of time. If they work more than they are also given extra salary. They get leave including salary, payment during leave, provident fund, service grant all. They also get pension on retirement.
  2. Unorganized Sector : The unorganized sector is a small and scattered unit. It is made from these. These units are mostly outside the government control. It does not follow the rules and regulations. There are low paying jobs here. and are often not regular. There is no provision for working overtime, leave with pay, holiday, sick leave etc. There is great uncertainty in employment. Workers can be removed from work without any reason. There is no protection in this employment and there is no profit.

Question.16. Compare the employment conditions prevailing in the organised and unorganised sectors.
Answer. There is a huge difference in the employment conditions of organized and unorganized sectors. These two sectors can be compared on the basis of the following points.

Organised SectorUnorganised Sector
1. Organized sectors are registered by the government.1. The unorganized sector is not registered by the government.
2. Government rules and regulations are followed in this.2. Government rules and regulations are not followed in this.
3. Here the duration of employment is regular.3. Here the period of employment is not regular.
4. Employees in this sector get the benefits of job security. They also get paid leave, provident fund, service grant etc.4. Employees in this sector do not get employment security. There is no provision for paid leave, provident fund, service grant etc.
5. Working in government institutions, government aided institutions and big companies are examples of this.5. This includes landless laborers, small farmers, street vendors, laborers and rag pickers.

Question.17. Explain the objective of implementing the NREGA 2005.
Answer. The Indian central government has already made a law related to 'right to work' for 200 districts of India a few years ago. This law is known as the Mahatma Gandhi 'National Rural Employment Assurance Act 2005'. The purpose of enacting this law is to provide work to those people. Those who need work, the government has to assure 100 days of employment in a year.

If the government fails to achieve this objective, it will also give employment exemption or unemployment allowance to the people.

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

  1. Public Sector : Those industries come in the public sector, which are under the government system, such as Indian Railways, iron-steel industry, shipbuilding etc. Such goods or services are manufactured in the public sector which is welfare for the people. Their aim is not to earn personal interest or profit, but their aim is public benefit. The price of goods and services in this sector is determined by the government.
  2. Private Sector : Private sector are those industries, which are owned by private individuals. In this come those industries which meet the needs of the general public, such as television, air condition, fridge etc. These activities are carried out with the aim of earning personal profit. The private sector is not bound to do welfare work. Even if he does any such work, he charges more for it like private schools charge more fees than government schools. In private sector industries, the prices of goods are determined by market forces.

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

Well Managed OrganisationBadly Managed Organisation
Public SectorPublic Sector MTNL, Indian Railways, All India RadioDelhi Transport Corporation (DTC), Food Corporation of India (FCI)
Private SectorTata, Infosys, RelianceDelhi Electric Supply Undertaking (DESU)

Question.20. Give a few examples of public sector activities and explain why the government has taken them up.
Answer. Some examples of public sector activities are as follows :

  1. Getting roads and bridges constructed
  2. Improving railway construction and facilities
  3. To generate electricity
  4. Arrangement of irrigation by dams etc.

The implementation of these activities is done by the government because there is a lot of expenditure in these works and the profit received in these works is always much less than the expenses. Because it works keeping in mind the facilities of the public.

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

  1. Public sector has an important contribution in the economic development of a country because the purpose of the public sector is not to earn profit. General conduct of all important activities. It is done by the generic sector only.
  2. Such activities which are required by all the members of the society, such as construction of roads, bridges, railways, ports, electricity etc. and providing irrigation facilities from dams etc. are the work of the public sector. The government itself bears such heavy expenditure. The government buys wheat and rice to get fair prices to the farmers. It stores it in its godowns and sells it to consumers through ration shops at low prices. In this way the government helps both the farmers and the consumers.
  3. Primary functions like providing health and education facilities to all also come under the public sector. It is the duty of the government to run the school properly and provide quality education. In this way, the contribution of the public sector in the economic development of a country is very important.

Question.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 issues like wages, safety and health. This can be explained as follows :

  1. Wages : The working hours of the unorganized sector workers are not fixed. They have to work for 10 to 12 hours without overtime. Lack of employment security is often found in these workers. Due to poverty, they often agree to work at low wage rates. Therefore, they should be given protection in this regard. Their working hours and wages should also be fixed.
  2. Security : The workers of this sector are often involved in high risk works like brick industry, coal mines etc. Therefore, their safety should be absolutely guaranteed, so that the family does not face trouble later.
  3. Health : These workers are poor. Their income is not so much that they can eat nutritious food. They work in adverse conditions of health. Due to these reasons their condition is not good. Important steps should also be taken regarding their health.

Question.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 ₹ 60,000 million. Out of this ₹ 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.  Data regarding Ahmedabad City (1997-98)

Sectors of EconomyNumber of LabourersIncome (In Lakhs)
Organised Sector4,00,00032,000
Unorganised Sector11,00,00028,000

From the study of these figures, it is concluded that the workers in the organized sector are less engaged as compared to the unorganized sector but their income is more than the unorganized sector. This means that the workers working in the unorganized sector get very low wages. These methods can be considered for generating more employment in the city:

  1. The form of education has to be changed. Education should be technical and vocational so that more and more people get engaged in work.
  2. People should get proper financial and technical assistance to start selfemployment.

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


(ii) On the basis of this table this bar diagram can be constructed.
(iii) This bar diagram proves that while the contribution of the primary sector has decreased from 22.22% to 13.93% (reduced), there has been a decrease in secondary and increase in tertiary sectors in GDP. The share of the secondary sector increased from 20.72% to 18.70% and that of the tertiary
sector increased from 57.05% to 67.85%.