SECTORS OF THE INDIAN ECONOMY PDF

NOTES FOR THE TEACHER\ NOTES FOR THE TEACHER\ NOTES FOR THE TEACHER\ NOTES FOR THE TEACHER\ NOTES FOR THE TEACHER\ CHAPTER 2: SECTORS OF THE INDIAN ECONOMY\ An economy is best understood when we\ study its components or sectors. Sectoral\ classification can be done on the basis of\ several criteria....

NOTES FOR THE TEACHER\ NOTES FOR THE TEACHER\ NOTES FOR THE TEACHER\ NOTES FOR THE TEACHER\ NOTES FOR THE TEACHER\ CHAPTER 2: SECTORS OF THE INDIAN ECONOMY\ An economy is best understood when we\ study its components or sectors. Sectoral\ classification can be done on the basis of\ several criteria. In this chapter\ , thr\ ee\ types of classifications are discussed:\ primary/secondary/tertiary; organised/\ unor\ ganised; and public/private. Y\ ou can\ create a discussion about these types by\ \ taking examples familiar to the students\ and relate them to their daily life. It is\ important to emphasise the changing\ roles of sectors. This can be highlighted\ \ further by drawing attention of the\ students to the rapid growth of service\ sector\. While elaborating the ideas\ pr\ ovided in the chapter\ , the students may\ need to be familiarised with a few\ \ fundamental concepts such as Gross\ Domestic Product, Employment etc. Since\ the students may find this difficult to\ understand, it is necessary to explain to\ them through examples. Several activities\ \ and exercises are suggested in the chapter\ to help the students understand how a\ person™s activity could be placed Š\ whether in the primary, secondary or\ tertiary, organised or unorganised, and\ public or private sector\. Y\ ou may\ encourage the students to talk to various\ working people around them (such as\ shop owners, casual workers, vegetable\ vendors, workshop mechanics, domestic\ workers etc.) to know more about how they\ live and work. Based on such information,\ \ the students can be encouraged to\ develop their own classification of\ economic activities.\ Another important issue to be\ highlighted is about the problems caused\ by the changes in the roles of sectors.\ The chapter has taken the example of\ \ unemployment and what the government\ can do to solve it. The declining importance\ of agriculture and growing importance of\ industry and services should be related\ \ to the experience of the children by taking\ more examples that they may observe in\ \ th\ eir day-to-day life. Information derived\ from the media could be used for this\ purpose. Y\ ou may encourage the students\ to bring important cuttings and stories\ \ from newspapers, which could be\ \ prominently displayed in storyboards, and\ \ encourage the class to discuss these\ \ issues. While discussing the unorganised\ \ sector\ , the key issue of pr\ otecting the\ workers engaged in the sector should be\ \ highlighted. Y\ ou may also encourage the\ students to visit persons and enterprises\ \ in the unorganised sector and get a first\ \ hand experience from real life situation.\ Sources for Information\ The GDP data used in this chapter\ pertaining to Gross Domestic Product at\ \ Factor Cost by Industry of Origin at\ \ 2011Œ12\ prices is taken fr\ om\ Real T\ ime\ Handbook of Statistics on Indian Economy\.\ It is a valuable source of GDP and other\ \ information relating to the Indian economy.\ \ For evaluation purposes, particularly to\ \ develop the analytical ability of learners,\ \ teachers can refer to\ this report through\ the Internet\ to get data for different years.\ Due to change in methodology, latest data\ \ is not used in the chapter\.\ The employment figures are based\ on data taken from the five-yearly surveys\ \ on employment and unemployment\ \ conducted by the National Sample Survey\ \ Organisation (NSSO) now known as\ \ National Statistical Office (NSO). NSO is\ \ an organisation under the Ministry of\ \ Statistics and Programme Implementation,\ \ Government of India. The website you can\ \ log onto is:\ http:/mospi.gov.in.\ Employment\ data is also available from other sources\ \ such as Census of India.\ \ \ \ UU\ \ U\ U\ U\ NDERST\ NDERST\ NDERSTNDERST\ NDERST\ ANDINGANDING\ ANDINGANDING\ ANDING\ E E\ E E\ E\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ D D\ \ D D\ D\ EVELEVEL\ EVELEVEL\ EVEL\ OPMENTOPMENT\ \ OPMENTOPMENT\ OPMENT\ 1818\ 1818\ 18 SECTORS\ OF THE INDIAN ECONOMY\ CHAPTER 2\ SECTORS OF ECONOMIC ACTIVITIES\ Let us look at these pictur\ es. Y\ ou will find that people ar\ e\ engaged in various economic activities. Some of these are\ activities producing goods. Some others are producing\ \ services. These activities are happening around us every\ \ minute even as we speak. How do we understand these\ activities? One way of doing this is to group them (classify\ them) using some important criterion. These groups are also\ \ called sectors. U\ U\ U\ U\ U\ NDERSTNDERST\ NDERSTNDERST\ NDERST\ ANDINGANDING\ \ ANDINGANDING\ ANDING\ E E\ E E\ E\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ D D\ \ D D\ D\ EVELEVEL\ EVELEVEL\ EVEL\ OPMENTOPMENT\ \ OPMENTOPMENT\ OPMENT\ 2020\ 2020\ 20\ There are many activities that are\ undertaken by directly using\ \ natural resources. Take, for\ \ example, the cultivation of cotton. It\ \ takes place within a crop season. For\ \ the growth of the cotton plant, we\ depend\ mainly, but not entirely,\ on natural factors like rainfall,\ sunshine and climate. The product\ \ of this activity, cotton, is a natural\ \ product. Similarly, in the case of an\ \ activity like dairy, we are dependent\ on the biological process of\ \ the animals and availability\ \ of fodder etc. The product\ here, milk, also is a natural\ product. Similarly\ ,\ minerals\ and ores are also natural\ products. When we produce\ a good by exploiting natural\ \ resources, it is an activity of\ the\ primary sector\. Why\ primary? This is because it\ forms the base for all\ other products that we\ subsequently make. Since\ \ most of the natural\ \ products we get are from\ \ agriculture, dairy, fishing,\ \ forestry, this sector is also\ called\ agriculture and related\ sector\.\ The\ secondary sector\ covers\ activities in which natural\ \ products\ are changed into other forms through\ ways of manufacturing that we\ associate with industrial activity. It is\ \ the next step after primary. The\ \ product is not produced by nature\ \ but has to be made and therefore\ \ some process of manufacturing is\ essential. This could be in a factory, a\ workshop or at home. For example,\ \ using cotton fibre from the plant, we\ spin yarn and weave cloth. Using\ \ sugarcane as a raw material, we make\ sugar or\ gur\. W\ e convert earth into\ bricks and use bricks to make houses\ and buildings. Since this sector\ gradually became associated with the\ different kinds of industries that came\ up, it is also called as\ industrial\ sector\.\ After primary and secondary, there\ is a third category of activities that falls\ under\ tertiary sector\ and is different\ from the above two. These are\ activities that help in the development\ \ of the primary and secondary sectors.\ \ These activities, by themselves, do not\ \ produce a good but they are an aid\ \ or a support for the production\ process. For example, goods that are\ produced in the primary or secondary\ \ sector would need to be transported\ \ by trucks or trains and then sold in\ \ wholesale and retail shops. At times,\ \ it may be necessary to store these in\ godowns. W\ e also may need to talk to\ others over telephone or send letters\ (communication) or borrow money\ \ from banks (banking) to help\ \ pr\ oduction and trade. T\ ransport,\ storage, communication, banking,\ trade are some examples of tertiary\ activities. Since these activities\ \ generate services rather than goods,\ \ the tertiary sector is also called the\ service sector\.\ Service sector also includes some\ essential services that may not directly\ help in the production of goods. For\ \ example, we require teachers, doctors,\ \ and those who provide personal\ \ services such as washermen, barbers,\ cobblers, lawyers, and people to do\ administrative and accounting works.\ \ In recent times, certain new services\ \ based on information technology such\ \ as internet cafe, ATM booths, call\ \ centres, software companies etc have\ become important.\ T\ ertiar\ y\ (Service)\ Sector\ Primary\ (\ Agriculture\ )\ Sector\ Secondary\ (Industrial)\ Sector\ produces\ natural\ goods\ produces\ manufactured\ goods\ helps to develop\ other sectors\ W\ e begin by looking at dif\ fer\ ent\ kind of economic activities. SS\ SS\ S\ ECTORS\ ECTORS\ ECTORS\ ECTORS\ ECTORS\ \ \ \ \ OFOF\ OFOF\ OF\ \ \ \ THETHE\ THETHE\ THE\ I I\ I I\ I\ NDIANNDIAN\ NDIANNDIAN\ NDIAN\ E E\ E E\ E\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ 2121\ \ 2121\ 21\ EXAMPLE\ Imagine what would happen if farmers\ refuse to sell sugarcane to a particular\ sugar mill. The mill will have to shut\ down.\ Imagine what would happen to cotton\ cultivation if companies decide not to\ buy from the Indian market and import\ \ all cotton they need from other\ countries. Indian cotton cultivation will\ become less profitable and the farmers\ may even go bankrupt, if they cannot\ quickly switch to other crops. Cotton\ prices will fall.\ Farmers buy many goods such as\ tractors, pump\ set\ s, electricity\ ,\ pesticides and fertilisers. Imagine what\ \ would happen if the price of fertilisers\ or pumpsets go up. Cost of cultivation\ \ of the farmers will rise and their profits\ will be reduced.\ People working in industrial and service\ sectors need food. Imagine what would\ \ happen if there is a strike by\ transporters and lorries refuse to take\ vegetables, milk, etc. from rural areas.\ Food will become scarce in urban areas\ whereas farmers will be unable to sell\ \ their products.\ 1. Complete the above table to show how sectors are dependent on each other\.\ 2. Explain the dif\ ference between primary\ , secondary and tertiary sectors using\ examples other than those mentioned in the text.\ 3.\ Classify the following list of occup\ ations under primary\ , secondary and tertiary sectors:\ LET™S WORK THESE OUT\ WHA\ T DOES THIS SHOW?\ This is an example of the secondary or\ industrial sector being dependent on\ \ the primary\.\ Ł\ T\ ailor\ Ł\ Basket weaver\ Ł\ Flower cultivator\ Ł\ Milk vendor\ Ł\ Fishermen\ Ł\ Priest\ Ł\ Courier\ Ł\ Workers in match factory\ Ł\ Moneylender\ Ł\ Gardener\ Ł\ Potter\ Ł\ Bee-keeper\ Ł\ Astronaut\ Ł\ Call centre employee\ 4. S\ tudent\ s in a school are of\ ten 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.\ T\ ABLE 2.1\ EXAMPLES OF ECONOMIC\ ACTIVITIES\ Economic activities, though, are\ grouped into three different categories,\ are highly\ interdependent.\ Let us look at some examples. UU\ \ U\ U\ U\ NDERST\ NDERST\ NDERSTNDERST\ NDERST\ ANDINGANDING\ ANDINGANDING\ ANDING\ E E\ E E\ E\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ D D\ \ D D\ D\ EVELEVEL\ EVELEVEL\ EVEL\ OPMENTOPMENT\ \ OPMENTOPMENT\ OPMENT\ 2222\ 2222\ 22\ The various production activities in the primary, secondary\ and tertiary sectors produce a very large number of goods\ \ and services. Also, the three sectors have a large number of\ \ people working in them to produce these goods and services.\ \ The next step, therefore, is to see how much goods and services\ ar\ e pr\ oduced and how many people work in each sector\. In\ an economy there could be one or more sectors which are\ dominant in terms of total production and employment, while\ \ other sectors are relatively small in size.\ How do we count the various goods and\ services and know the total production in\ \ each sector?\ With so many thousands of goods and services produced,\ you might think this is an impossible task! Not only would\ the task be enormous, you might also wonder how we can\ add up cars and computers and nails and furniture. It won™t\ \ make sense!!!\ Y\ ou ar\ e right in thinking so. T\ o get ar\ ound this pr\ oblem,\ economists suggest that the values of goods and services\ \ should be used rather than adding up the actual numbers.\ \ For example, if 10,000 kgs of wheat is sold at Rs 20 per kg,\ the value of wheat will be Rs 2,00,000. The value of 5000\ coconuts at Rs 15 per coconut will be Rs 75,000. Similarly,\ \ the value of goods and services in the three sectors are\ \ calculated, and then added up.\ Remember\ , ther\ e is one pr\ ecaution one has to take. Not\ every good (or service) that is produced and sold needs to be\ counted. It makes sense only to include the\ final goods and\ services\. Take, for instance, a farmer who sells wheat to a\ flour mill for Rs 20 per kg. The mill grinds the wheat and sells\ the flour to a biscuit company for Rs 25 per kg. The biscuit\ \ company uses the flour and things such as sugar and oil to\ \ make four packets of biscuits. It sells biscuits in the market to\ the consumers for Rs 80 (Rs 20 per packet). Biscuits are the\ final goods, i.e., goods that reach the consumers.\ Why are only ‚final goods and services™ counted?\ \ In\ contrast to final goods, goods such as wheat and the wheat\ \ flour in this example are intermediate goods. Intermediate\ \ goods are used up in producing final goods and services.\ The value of final goods\ already includes\ the value of all\ the intermediate goods that are used in making the final\ good. Hence, the value of Rs 80 for the biscuits (final good)\ \ already includes the value of flour (Rs 25). Similarly, the\ \ value of all other intermediate goods would have been\ \ included. To count the value of the flour and wheat\ COMP\ ARING THE THREE SECTORS\ \...BUT I SHOULD BE P\ AID THE\ FULL V\ ALUE OF THE WHEA\ T\ THA\ T I PR\ ODUCE ! SS\ SS\ S\ ECTORS\ ECTORS\ ECTORS\ ECTORS\ ECTORS\ \ \ \ \ OFOF\ OFOF\ OF\ \ \ \ THETHE\ THETHE\ THE\ I I\ I I\ I\ NDIANNDIAN\ NDIANNDIAN\ NDIAN\ E E\ E E\ E\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ 2323\ \ 2323\ 23\ separately is therefore not correct\ because then we would be counting\ \ the value of the same things a number\ \ of times. First as wheat, then as flour\ and finally as biscuits.\ 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\.\ And the sum of\ production in the three sectors gives\ what is called the\ Gross Domestic\ Product (GDP)\ of a country. It is the\ value of all final goods and services\ \ produced\ within a country\ during a\ particular year\. GDP shows how big\ the economy is.\ In India, the mammoth task of\ measuring GDP is undertaken by a\ central government ministry. This\ Ministry, with the help of various\ government departments of all the\ \ Indian states and union territories,\ \ collects information relating to total\ volume of goods and services and their\ prices and then estimates the GDP\.\ Historical Change in Sectors\ Generally, it has been noted from the\ histories of many, now developed,\ countries that at initial stages of\ \ development, primary sector was the\ \ most important sector of economic\ activity.\ As the methods of farming\ changed and agriculture sector began\ to pr\ osper\ , it pr\ oduced much mor\ e\ food than before. Many people could\ now take up other activities. There\ were increasing number of craft-\ \ persons and traders. Buying and\ \ selling activities increased many times.\ Besides, there were also transporters,\ administrators, ar\ my etc. However\ , at\ this stage, most of the goods produced\ \ were natural products from the\ primary sector and most people were\ also employed in this sector\.\ Over a long time (more than\ hundred years), and especially\ because new methods of\ manufacturing were introduced,\ \ factories came up and started\ \ expanding. Those people who had\ \ earlier worked on farms now began\ \ to work in factories in large numbers.\ They were forced to do so as you read\ in history chapters. People began to\ \ use many more goods that were\ \ produced in factories at cheap rates.\ \ Secondary sector gradually became\ \ the most important in total production\ and employment.\ Hence, over time, a\ shift had taken place. This means that\ the importance of the sectors had\ \ changed.\ In the past 100 years, there has\ been a further shift from secondary to\ \ tertiary sector in developed countries.\ \ The service sector has become the most\ \ important in terms of total production.\ \ Most of the working people are also\ \ employed in the service sector\. This is\ the general pattern observed in\ \ developed countries.\ What is the total production and\ employment in the three sectors in\ \ India? Over the years have there been\ \ changes similar to the pattern\ observed for the developed countries?\ W\ e shall see in the next section.\ 1.\ What does the history of developed countries indicate\ about the shifts that have taken place between sectors?\ 2.\ Correct and arrange the important aspects for calculating\ GDP from this Jumble.\ T\ o 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.\ 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.\ LET™S WORK THESE OUT UU\ \ U\ U\ U\ NDERST\ NDERST\ NDERSTNDERST\ NDERST\ ANDINGANDING\ ANDINGANDING\ ANDING\ E E\ E E\ E\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ D D\ \ D D\ D\ EVELEVEL\ EVELEVEL\ EVEL\ OPMENTOPMENT\ \ OPMENTOPMENT\ OPMENT\ 2424\ 2424\ 24\ Graph 1 shows the\ production of goods and\ \ services in the three sectors.\ \ This is shown for two years,\ 1973-74 and 2013-14. We\ have used the data for these\ \ two years because the data\ \ are comparable and\ \ authentic. You can see how\ \ the total production has\ grown over the forty years.\ PRIMAR\ Y\ , SECONDAR\ Y AND TER\ TIAR\ Y\ SECTORS IN INDIA\ Answer the following questions by\ looking at the graph:\ 1.\ Which was the largest producing\ sector in 1973-74?\ 2.\ Which is the largest producing\ sector in 2013-14?\ 3.\ Can you say which sector has\ grown the most over\ fo\ rty years?\ 4.\ What was the GDP of India in\ 2013-14?\ LE\ T™S WORK THESE\ OUT\ Rising Importance of the\ T\ ertiar\ y Sector in P\ roduction\ Over the forty years between 1973-74\ \ and 2013-14, while production in all\ \ the three sectors has increased, it has\ \ increased the most in the tertiary sector.\ As a result, in the year 2013-14, the\ tertiary sector has emerged as the\ \ largest producing sector in India\ \ replacing the primary sector.\ Why is the tertiary sector becoming\ so important in India? There could be\ \ several reasons.\ First, in any country several\ services such as hospitals,\ \ educational institutions, post and\ \ telegraph services, police stations,\ courts, village administrative offices,\ municipal corporations, defence,\ \ transport, banks, insurance\ \ companies, etc. are required. These\ can be considered as\ basic services\.\ In a developing country the\ government has to take responsibility\ for the provision of these services.\ Second, the development of\ agriculture and industry leads to the\ \ development of services such as\ Graph 1 :\ GDP\ by Primary\ , Secondary and\ T\ ertiary Sectors\ What does the comparison between\ 1973-74 and 2013-14 show?\ What conclusions can we draw\ from the comparison?\ Let™s find out. SS\ SS\ S\ ECTORSECTORS\ ECTORS\ ECTORS\ ECTORS\ \ \ \ \ OFOF\ \ OFOF\ OF\ \ \ \ THETHE\ THETHE\ THE\ I I\ I I\ I\ NDIANNDIAN\ NDIANNDIAN\ NDIAN\ E E\ E E\ E\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ 2525\ \ 2525\ 25\ transport, trade, storage and the like,\ as we have already seen. Greater the\ development of the primary and\ secondary sectors, more would be the\ \ demand for such services.\ Third, as income levels rise, certain\ sections of people start demanding\ many more services like eating out,\ tourism, shopping, private hospitals,\ \ private schools, professional training\ \ etc. You can see this change quite\ \ sharply in cities, especially in big cities.\ Fourth, over the past decade or so,\ certain new services such as\ \ those based on information and\ \ communication technology have\ \ become important and essential. The\ \ production of these services has been\ \ rising rapidly. In Chapter 4, we shall\ see examples of these new services\ and the reasons for their expansion.\ However, you must remember that\ not all of the service sector is growing\ \ equally well. Service sector in India\ employs many different kinds of\ people. At one end there are a limited\ \ number of services that employ highly\ \ skilled and educated workers. At the\ \ other end, there are a very large\ \ number of workers engaged in\ services such as small shopkeepers,\ repair persons, transport persons,\ \ etc. These people barely manage to\ \ earn a living and yet they perform\ \ these services because no alternative\ \ opportunities for work are available\ to them. Hence, only a part of this\ sector is growing in importance. You\ \ shall read more about this in the next\ \ section.\ Where are most of the people\ employed?\ Graph 2 presents percentage share of\ the three sectors in GDP. Now you can\ \ directly see the changing importance\ \ of the sectors over the forty years.\ Graph 2 : Share of Sectors in GDP (%)\ A remarkable fact about India is\ that while there has been a change\ \ in the share of the three sector\ s\ in\ GDP, a similar shift has not taken\ \ place in employment. Graph 3\ \ shows\ the share of employment in\ the three sectors in 197\ 7-78\ and\ 20\ 17-18\.\ The primary sector\ continues to be the largest\ \ employer even\ now\.\ Why didn™t a similar shift out of\ primary sector happen in case of\ \ employment? It is because not\ enough jobs were created in the\ secondary and tertiary sector\ s\.\ Even\ Graph 3 : Share of Sectors in Employment (%) UU\ \ U\ U\ U\ NDERST\ NDERST\ NDERSTNDERST\ NDERST\ ANDINGANDING\ ANDINGANDING\ ANDING\ E E\ E E\ E\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ D D\ \ D D\ D\ EVELEVEL\ EVELEVEL\ EVEL\ OPMENTOPMENT\ \ OPMENTOPMENT\ OPMENT\ 2626\ 2626\ 26\ though industrial output or the\ production of goods went up by\ more than nine\ times during the\ period,\ \ employment in the industry\ went up by\ around three\ times. The\ same applies to\ the\ tertiary sector\ as well. While production in the\ service\ sector rose by 1\ 4\ times,\ employment in the service sector\ \ rose\ around five\ times.\ As a result, more than half of the\ workers in the country are working\ \ in the primary sector, mainly in\ agriculture, producing only\ about\ one sixth\ of the GDP. In contrast to\ this, the secondary and tertiary\ sectors produce\ the rest\ of the\ produce whereas they employ less\ \ about\ half the people. Does this mean\ that the workers in agriculture\ are not producing as much as\ \ they could?\ What it means is that there\ are more people in agriculture than\ \ is necessary. So, even if you move\ a few people out, production will\ not be affected. In other words,\ \ workers in the agricultural sector are\ \ underemployed\.\ For instance, take the case of a\ small farmer, Laxmi, owning about\ \ two hectares of unirrigated land\ \ dependent only on rain and\ \ growing crops\ ,\ like\ jowar\ and\ arhar\.\ All five members of her family work\ \ in the plot throughout the year.\ Why? They have nowhere else to go\ for work. You will see that everyone\ \ is working, none remains idle, but\ \ in\ actual fact\ ,\ their\ labour effort\ gets divided. Each one is doing\ \ some\ work but no one is fully\ employed.\ This is the situation of\ underemployment, where people\ \ are apparently working but all\ \ of them are made to work less\ \ than their potential.\ This kind of\ underemployment is hidden in\ contrast to someone who does not\ have a job and is clearly visible as\ unemployed. Hence, it is also\ called disguised unemployment.\ Now, supposing a landlord,\ Sukhram, comes and hires one or\ \ two members of the family to work\ on his land. Laxmi™s family is now\ able to earn some extra income\ through wages. Since you do\ \ n\ o\ t\ need five people to look after that\ small plot, two people moving out\ does not affect production on their\ farm. In the above example, two\ people may move to work in a\ factory. Once again the earnings of\ \ the family would increase and they\ would also continue to produce as\ much from their land.\ There are lakhs of farmers like\ Laxmi in India. This means that even\ if we remove a lot of people from\ agricultural sector and provide them\ \ with proper work elsewhere,\ agricultural production will not\ suffer. The incomes of the people who\ take up other work would increase\ the total family income.\ This underemployment can also\ happen in other sectors. For\ \ example there are thousands of\ casual workers in the service\ sector in urban areas who search\ for daily employment. They are\ employed as painters, plumbers,\ repair persons and others doing\ odd jobs. Many of them don™t find\ \ work everyday. Similarly\ ,\ we see\ other people of the service sector\ \ on the street pushing a cart or\ selling something where\ they may\ spend the whole day but earn\ very little.\ They are doing this\ work because they do not have\ better opportunities. SS\ SS\ S\ ECTORSECTORS\ ECTORS\ ECTORS\ ECTORS\ \ \ \ \ OFOF\ \ OFOF\ OF\ \ \ \ THETHE\ THETHE\ THE\ I I\ I I\ I\ NDIANNDIAN\ NDIANNDIAN\ NDIAN\ E E\ E E\ E\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ 2727\ \ 2727\ 27\ How to Create More\ Employment?\ From the above discussion\ ,\ we can see\ that there continues to be considerable\ underemployment in agriculture.\ There are also people who are not\ \ employed at all. In what ways can one\ \ increase employment for people? Let\ \ us look at some of them.\ Take the case of Laxmi with her\ two-hectare plot of unirrigated land.\ \ The government can spend some\ \ money or banks can provide a loan,\ \ to construct a well for her family to\ \ irrigate the land. Laxmi will then be\ able to irrigate her land and take a\ second crop, wheat, during the\ rabi\ \ season. Let us suppose that one\ \ hectare of wheat can provide\ \ employment to two people for 50 days\ \ (including sowing, watering, fertiliser\ LET™S WORK THESE OUT\ TABLE 2.2\ SHARE OF PRIMAR\ Y\ SECT\ OR IN\ GDP\ \ AND EMPLOYMENT\ Share in GDP\ Share in employment\ 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.\ What are the changes that you observe in the primary sector over a span of\ fo\ rty\ years?\ 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\ 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?\ 4.\ Why should we be worried about underemployment?\ 1973-74\ 1977-78 2013-14 2017-18 application and harvesting). So, two\ more members of the family can be\ employed in her own field. Now\ suppose a new dam is constructed\ \ and canals are dug to irrigate many\ \ such farms. This could lead to a lot of\ \ employment generation within the\ \ agricultural sector itself reducing the\ problem of underemployment.\ Now, suppose Laxmi and other\ farmers produce much more than\ before. They would also need to sell some\ \ of this. For this they may be required to\ transport their products to a nearby\ town. If the government invests some\ \ money in transportation and storage of\ \ crops, or makes better rural roads so\ \ that mini-trucks reach everywhere\ \ several farmers like Laxmi, who now\ have access to water, can continue to\ grow and sell these crops. This activity\ \ can provide productive employment to\ \ not just farmers but also others such as\ \ those in services like transport or trade.\ Laxmi™s need is not confined to\ water alone. To cultivate the land, she\ \ also needs seeds, fertilisers,\ \ agricultural equipment and pumpsets\ \ to draw water\. Being a poor far\ mer\ ,\ she cannot afford many of these. So\ ,\ she will have to borrow money from\ moneylenders and pay a high rate of\ interest. If the local bank gives her\ credit at a reasonable rate of interest,\ she will be able to buy all these in time\ and cultivate her land. This means that\ \ along with water\ , we also need to\ provide cheap agricultural credit to the\ \ far\ mers for far\ ming to impr\ ove. W\ e will\ look at some of these needs in Chapter\ 3\ , Money and Credit\.\ Another way by which we can\ tackle this problem is to identify,\ promote and locate industries and\ \ services in semi-rural areas where a\ large number of people may be\ employed. For instance, suppose\ many farmers decide to grow\ arhar\ and chickpea (pulse crops). Setting\ \ up a\ dal\ mill to procure and process\ these and sell in the cities is one such\ example. Opening a cold storage could\ give an opportunity for farmers to\ \ store their products like potatoes and\ \ onions and sell them when the price\ \ is good. In villages near forest areas,\ \ we can start honey collection centres\ where farmers can come and sell wild\ honey. It is also possible to set up\ \ industries that process vegetables and\ \ agricultural produce like potato,\ \ sweet potato, rice, wheat, tomato,\ \ fruits, which can be sold in outside\ markets. This will provide\ employment in industries located in\ \ semi-rural areas and not necessarily\ \ in large urban centres.\ Do you know that in India about\ 60 per cent of the population belongs\ \ to the age group 5-29 years? Out of\ this, only about 51 per cent are\ attending educational institutions.\ \ The rest and particularly those aged\ \ less than 18 years may be at home or\ 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?\ Gur Making in\ Haryana SS\ SS\ S\ ECTORSECTORS\ ECTORS\ ECTORS\ ECTORS\ \ \ \ \ OFOF\ \ OFOF\ OF\ \ \ \ THETHE\ THETHE\ THE\ I I\ I I\ I\ NDIANNDIAN\ NDIANNDIAN\ NDIAN\ E E\ E E\ E\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ 2929\ \ 2929\ 29\ in about 625 districts of India. It is\ ca\ lled\ Mahatma Gandhi National\ Rural Employment Guarantee Act\ 2005 (MGNREGA 2005\ ). Under\ 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. If the government fails in\ its duty to provide employment, it will\ give unemployment allowances to the\ people. The types of work that would\ in future help to increase the\ production from land will be given\ preference u\ nder the Act.\ many of them may be working as\ child labourers. If these children are\ to attend schools, we will require more\ buildings, more teachers and other\ \ staff. A study conducted by the\ \ erstwhile Planning Commission (now\ \ known as NITI Aayog) estimates that\ \ nearly 20 lakh jobs can be created in\ the education sector alone. Similarly,\ if we are to improve the health\ \ situation, we need many more doctors,\ \ nurses, health workers etc. to work\ \ in rural areas. These are some ways\ \ by which jobs would be created and\ we would also be able to address the\ important aspects of development\ \ talked about in Chapter 1.\ Every state or region has potential\ for increasing the income and\ employment for people in that area.\ It could be tourism, or regional craft\ \ industry, or new services like IT. Some\ \ of these would require proper\ \ planning and support from the\ \ government. For example, the same\ study by the Planning Commission\ says that if tourism as a sector is\ \ improved, every year we can give\ \ additional employment to more than\ \ 35 lakh people.\ W\ e must r\ ealise that some of the\ suggestions discussed above would\ \ take a long time to implement. For the\ \ short-term, we need some quick\ \ measures. Recognising this, the\ \ central government in India made a\ law implementing the\ Right to W\ ork\ 1. Why do you think MGNREGA 2005 is referred to as ‚ Right to work™ ?\ 2. Imagine that you are the village head. In that capacity suggest some activities that\ you think should be t\ aken up under this\ Act that would also increase the income of\ people? Discuss.\ 3.\ How would income and employment increase if farmers were provided with irrigation\ and marketing facilities?\ 4. In what ways can employment be increased in urban areas?\ LET™S WORK THESE OUT U\ U\ U\ U\ U\ NDERSTNDERST\ NDERSTNDERST\ NDERST\ ANDINGANDING\ \ ANDINGANDING\ ANDING\ E E\ E E\ E\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ D D\ \ D D\ D\ EVELEVEL\ EVELEVEL\ EVEL\ OPMENTOPMENT\ \ OPMENTOPMENT\ OPMENT\ 3030\ 3030\ 30\ Let us examine another way of classifying activities in the economy. This looks\ at the way people are employed. What are their conditions of work? Are there\ \ any rules and regulations that are followed as regards their employment?\ organised because it has some formal\ \ processes and procedures. Some of\ these people may not be employed by\ anyone but may work on their own\ \ but they too have to register\ \ themselves with the government and\ \ follow the rules and regulations.\ W\ orkers in the or\ ganised sector\ enjoy security of employment. They\ \ are expected to work only a fixed\ \ number of hours. If they work more,\ \ they have to be paid overtime by the\ \ employer\. They also get several other\ benefits from the employers. What are\ Kanta works in the\ organised\ sector\. Or\ ganised sector covers those\ enterprises or places of work where\ \ the terms of employment are regular\ \ and therefore, people have assured\ \ work. They are registered by the\ government and have to follow its\ rules and regulations which are\ \ given in various laws such as the\ \ Factories Act, Minimum W\ ages Act,\ Payment of Gratuity Act, Shops and\ \ Establishments Act etc. It is called\ DIVISION OF SECTORS AS ORGANISED AND\ UNORGANISED\ Kanta\ Kanta\ Kanta\ Kanta\ Kanta\ Kanta works in an office. She attends her office from\ 9.30 a.m. to 5.30 p.m. She gets her salary regularly\ at the end of every month. In addition to the salary,\ she also gets provident fund as per the rules laid\ down by the gover\ nment. She also gets medical and\ other allowances. Kanta does not go to office on\ Sundays. This is a paid holiday. When she joined\ work, she was given an appointment letter stating\ all the ter\ ms and conditions of work.\ KamalKamal\ KamalKamal\ Kamal\ Kamal is Kanta™s neighbour\. He is a\ daily wage labourer in a nearby\ grocery shop. He goes to the shop at\ 7:30 in the mor\ ning and works till 8:00\ p.m. in the evening. He gets no other\ allowances apart from his wages. He\ is not paid for the days he does not\ work. He has therefore no leave or paid\ \ holidays. Nor was he given any for\ mal\ letter saying that he has been\ employed in the shop. He can be asked\ to leave anytime by his employer\.\ Do you see the differences in\ the conditions of work\ between Kanta and Kamal\ ? SS\ SS\ S\ ECTORSECTORS\ ECTORS\ ECTORS\ ECTORS\ \ \ \ \ OFOF\ \ OFOF\ OF\ \ \ \ THETHE\ THETHE\ THE\ I I\ I I\ I\ NDIANNDIAN\ NDIANNDIAN\ NDIAN\ E E\ E E\ E\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ 3131\ \ 3131\ 31\ these benefits? They get paid leave,\ payment during holidays, provident\ fund, gratuity etc. They are supposed\ to get medical benefits and, under the\ \ laws, the factory manager has to\ ensure facilities like drinking water\ and a safe working environment.\ When they retire, these workers get\ pensions as well.\ In contrast, Kamal works in the\ unorganised sector. The\ unorganised\ sector\ is characterised by small and\ scattered units which are largely\ \ outside the control of the government.\ \ There are rules and regulations but\ these are not followed. Jobs here are\ l\ ow-paid a\ nd often not r\ egular\. Ther\ e\ is no provision for overtime, paid\ leave, holidays, leave due to sickness\ \ etc. Employment is not secure. People\ \ can be asked to leave without any\ reason. When there is less work, such\ as during some seasons, some people\ \ may be asked to leave. A lot also\ \ depends on the whims of the\ employer. This sector includes a large\ number of people who are employed\ \ on their own doing small jobs such\ \ as selling on the street or doing repair\ work. Similarly, farmers work on their\ own and hire labourers as and\ when\ they requir\ e.\ 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\ 2.\ T\ alk to someone who has a regular job in the organised sector and another who works in the unorganised\ sector\. Comp\ are and contrast their working conditions in all aspect\ s.\ 3.\ How would you distinguish between organised and unorganised sectors? Explain in your own words.\ 4.\ The table below shows the estimated number of workers in India in the organised and unorganised\ sectors. Read the t\ able carefully\. Fill in the missing dat\ a and answer the questions that follow\.\ LET™S WORK THESE OUT\ ·\ What is the percentage of p\ eople in the unorganised sector in agriculture?\ ·\ Do you agree that agriculture is an unorganised sector activity? Why?\ ·\ If we look at the country as a whole, we find that ŠŠŠ% of the workers in India are in the\ unorganised sector\. Organised sector employment is available to only about ŠŠŠ% of the\ workers in India.\ Sector\ Organised\ Unorganised\ T\ ot\ al\ Primary\ 1\ 232\ Secondary\ 41\ 74\ 1\ 15\ T\ ertiary\ 40\ 88\ 128\ T\ ot\ al\ 82\ T\ ot\ al in Percent\ age\ 100%\ TABLE 2.3\ WORKERS IN DIFFERENT SECTORS (IN MILLIONS) U\ U\ U\ U\ U\ NDERSTNDERST\ NDERSTNDERST\ NDERST\ ANDINGANDING\ \ ANDINGANDING\ ANDING\ E E\ E E\ E\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ D D\ \ D D\ D\ EVELEVEL\ EVELEVEL\ EVEL\ OPMENTOPMENT\ \ OPMENTOPMENT\ OPMENT\ 3232\ 3232\ 32\ How to P\ rotect W\ ork\ ers in\ the Unorganised Sector?\ The organised sector offers jobs that\ ar\ e the most sought-after\. But the\ employment opportunities in the\ \ organised sector have been expanding\ \ very slowly. It is also common to find\ many organised sector enterprises in\ the unor\ ganised sector\. They adopt\ such strategies to evade taxes and\ \ refuse to follow laws that protect\ \ labourers. As a result, a large number\ \ of workers are forced to enter the\ unorganised sector jobs, which pay a\ very low salary. They are often\ \ exploited and not paid a fair wage.\ \ Their earnings are low and not\ \ r\ egular\. These jobs ar\ e not secur\ e and\ have no other benefits.\ Since the 1990s, it is also common\ to see a large number of workers\ \ losing their jobs in the organised\ \ sector\. These workers ar\ e for\ ced to\ take up jobs in the unorganised\ \ sector with low earnings. Hence,\ besides the need for more work, there\ is also a need for protection and\ \ support of the workers in the\ \ unor\ ganised sector\.\ Who are these vulnerable people\ who need protection? In the rural\ areas, the unorganised sector mostly\ comprises of landless agricultural\ \ labourers, small and marginal\ \ farmers, sharecroppers and artisans\ \ (such as weavers, blacksmiths,\ \ carpenters and goldsmiths). Nearly\ 80 per cent of rural households in\ India are in small and marginal\ \ farmer category. These farmers need\ \ to be supported through adequate\ \ facility for timely delivery of seeds,\ \ agricultural inputs, credit, storage\ facilities and marketing outlets.\ In the urban areas, unorganised\ sector comprises mainly of workers in\ small-scale industry, casual workers\ \ in construction, trade and transport\ etc., and those who work as street\ vendors, head load workers, garment\ \ makers, rag pickers etc. Small-scale\ \ industry also needs government™s\ \ support for procuring raw material\ \ and marketing of output. The casual\ workers in both rural and urban\ areas need to be protected.\ W\ e also find that majority of\ workers from scheduled castes, tribes\ and backward communities\ find themselves in the\ unor\ ganised sector\. Besides\ getting the irregular and low\ paid work, these workers also\ face social discrimination.\ Protection and support to\ the unorganised sector\ \ workers is thus necessary\ for both economic and\ social development.\ When factories close down, many\ once regular workers are found\ \ selling goods or pushing a cart or\ doing some other odd job SS\ SS\ S\ ECTORS\ ECTORS\ ECTORS\ ECTORS\ ECTORS\ \ \ \ \ OFOF\ OFOF\ OF\ \ \ \ THETHE\ THETHE\ THE\ I I\ I I\ I\ NDIANNDIAN\ NDIANNDIAN\ NDIAN\ E E\ E E\ E\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ 3333\ \ 3333\ 33\ Sector\ Criteria used\ Most important\ Problems indicated and\ conclusion\ how they can be tackled\ Primary\ ,\ Nature\ Secondary\ ,\ of activity\ T\ ertiary\ Organised,\ Unorganised\ LET™S RECALL\ With so many activities taking place around us, one needs to use the\ pr\ ocess 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 Š primary,\ secondary, tertiary Š 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\ CLASSIFYING ECONOMIC\ ACTIVITIES\ Another way of classifying economic\ activities into sectors could be on the\ \ basis of who owns assets and is\ responsible for the delivery of services.\ In the\ public\ sector\ , the gover\ nment\ owns most of the assets and provides\ all the services. In the\ private\ sector\ ,\ ownership of assets and delivery of\ services is in the hands of private\ individuals or companies. Railways or\ post office is an example of the public\ \ sector whereas companies like Tata\ \ Iron and Steel Company Limited\ \ (TISCO) or Reliance Industries\ \ Limited (RIL) are privately owned.\ Activities in the private sector are\ guided by the motive to earn profits.\ To get such services we have to pay\ \ money to these individuals and\ \ companies. The purpose of the public\ sector is not just to earn profits.\ Governments raise money through\ \ taxes and other ways to meet expenses\ \ on the services rendered by it. Modern\ \ day governments spend on a whole\ \ range of activities. What are these\ activities? Why do governments spend\ on such activities? Let™s find out.\ There are several things needed by\ the society as a whole but\ which the\ private sector will not provide at\ a reasonable cost.\ Why? Some of\ these need spending large sums of\ money, which is beyond the capacity\ SECTORS IN TERMS OF OWNERSHIP: PUBLIC\ AND PRIV\ A\ TE SECTORS UU\ \ U\ U\ U\ NDERST\ NDERST\ NDERSTNDERST\ NDERST\ ANDINGANDING\ ANDINGANDING\ ANDING\ E E\ E E\ E\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ D D\ \ D D\ D\ EVELEVEL\ EVELEVEL\ EVEL\ OPMENTOPMENT\ \ OPMENTOPMENT\ OPMENT\ 3434\ 3434\ 34\ of the private sector\. Also, collecting\ money from thousands of people who\ use these facilities is not easy. Even if\ they do provide these things they\ \ would charge a high rate for their\ \ use. Examples are construction of\ \ roads, bridges, railways, harbours,\ \ generating electricity, providing\ irrigation through dams etc. Thus,\ governments have to undertake such\ \ heavy spending and ensure that\ \ these facilities are available for\ \ everyone.\ There are some activities,\ which\ the government has to support\. The\ private sector may not continue their\ \ production or business unless\ \ government encourages it. For\ \ example, selling electricity at the cost\ of generation may push up the costs\ of production of goods in many\ \ industries. Many units, especially\ \ small-scale units, might have to shut\ \ down. Government here steps in by\ \ producing and supplying electricity\ at rates which these industries can\ afford. Government has to bear part\ \ of the cost.\ Similarly, the Government in India\ buys wheat and rice from farmers at\ \ a ‚fair price™. This it stores in its\ godowns and sells at a lower price to\ consumers thr\ ough ration shops. Y\ ou\ have read about this in the chapter\ \ on Food Security in Class IX. The\ government has to bear some of the\ cost. In this way, the government\ supports both farmers and\ consumers.\ There are a large number of\ activities which are the primary\ responsibility of the government.\ The\ government must spend on these.\ Providing health and education\ facilities for all is one example. We have\ discussed some of these issues in the\ first chapter. Running proper schools\ \ and providing quality education,\ particularly elementary education, is\ the duty of the government. India™s size\ of illiterate population is one of the\ largest in the world.\ Similarly, we know that nearly half\ of India™s children are malnourished\ and a quarter of them are critically ill.\ We have read about Infant Mortality\ \ Rates. The infant mortality rate of\ Odisha (40) or Madhya Pradesh (48)\ is higher than some of the poorest\ regions of the world. Government\ also needs to pay attention to aspects\ \ of human development such as\ availability of safe drinking water,\ housing facilities for the poor and food\ and nutrition. It is also the duty of\ the government to take care of the\ poorest and most ignored regions of\ the country through increased\ \ spending in such areas.\ SUMMING UP\ In this chapter we have looke\ d at ways of\ classifying economic activities into some\ meaningful groups. One way of doing this\ \ is to examine whether the activity relates to\ \ the primary, secondary or tertiary sectors.\ \ The data for India, for the last thirty years,\ \ shows that while goods and services\ \ produced in the tertiary sector contribute\ \ the most to GDP, the employment remains\ in the primary sector. We have also seen\ what all can be done for increasing\ employment opportunities in the country.\ \ Another classification is to consider whether\ \ people are working in organised or\ \ unorganised sectors. Most people are\ \ working in the unorganised sectors and\ \ protection is necessary for them. We also\ \ looked at the difference between private and\ \ public activities, and why it is important for\ \ public activities to focus on certain areas\. 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\ \_\_\_\_\_\_\_\_\_\ \[independent / interdependent\]\ 2.\ Choose the most appropriate answer\.\ (a)\ The sectors are classified into public and private sector on the basis of:\ (i)\ employment conditions\ (ii\ )\ the nature of economic activity\ (iii\ )\ ownership of enterprises\ (iv)\ number of workers employed in the enterprise\ (b)\ Production of a commodity\ , mostly through the natural process, is an\ activity in\ \_\_\_\_\_\_\_\_\_\ sector\.\ (i)\ primary\ (ii)\ secondary\ (iii\ )\ tertiary\ (iv)\ information technology\ (c)\ GDP\ is the tot\ al value of\ \_\_\_\_\_\_\_\_\_\ produced during a p\ articular year\.\ (i)\ all goods and services\ (ii)\ all final goods and services\ (iii\ )\ all intermediate goods and services\ (iv)\ all intermediate and final goods and services\ (d)\ In terms of GDP the share of tertiary sector in 2013-14 is\ between\ \_\_\_\_\_\_\_\_\_\ per cent.\ (i)\ 20 to 30\ (ii)\ 30 to 40\ (iii)\ 50 to 60\ (iv)\ 60 to 70\ EXERCISES\ SS\ SS\ S\ ECTORS\ ECTORS\ ECTORS\ ECTORS\ ECTORS\ \ \ \ \ OFOF\ OFOF\ OF\ \ \ \ THETHE\ THETHE\ THE\ I I\ I I\ I\ NDIANNDIAN\ NDIANNDIAN\ NDIAN\ E E\ E E\ E\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ 3535\ \ 3535\ 35 U\ U\ U\ U\ U\ NDERSTNDERST\ NDERSTNDERST\ NDERST\ ANDINGANDING\ \ ANDINGANDING\ ANDING\ E E\ E E\ E\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ D D\ \ D D\ D\ EVELEVEL\ EVELEVEL\ EVEL\ OPMENTOPMENT\ \ OPMENTOPMENT\ OPMENT\ 3636\ 3636\ 36\ 3.\ Match the following:\ Problems faced by farming sector\ Some possible measures\ 1. Unirrigated land\ (a) Setting up agro-based mills\ 2. Low prices for crops\ (b) Cooperative marketing societies\ 3. Debt burden\ (c) Procurement of food grains by government\ 4. No job in the off season\ (d) Construction of canals by the government\ 5. Compelled to sell their grains to\ (e) Banks to provide credit with low interest\ the local traders soon after harvest\ 4.\ Find the odd one out and say why\.\ (i)\ T\ ourist guide, dhobi, t\ ailor\ , potter\ (ii)\ Teacher\ , doctor\ , veget\ able vendor\ , lawyer\ (iii)\ Postman, cobbler\ , soldier\ , police const\ able\ (iv)\ MTNL, Indian Railways,\ Air India, Jet\ Airways,\ All India Radio\ 5.\ A research scholar looked at the working people in the city of Surat and found\ the following.\ Percentage of working people\ 15\ 15\ 20\ Nature of employment\ Organised\ Place of work\ In offices and factories registered\ with the government\ Own shops, office, clinics in\ marketplaces with formal license\ People working on the street,\ construction workers, domestic\ workers\ Working in small workshops\ usually not registered with the\ government\ Complete the table. What is the percentage of workers in the unorganised\ sector in this city?\ 6.\ Do you think the classification of economic activities into primary\ , secondary\ and tertiary is useful? Explain how\.\ 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.\ 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.\ 9.\ How is the tertiary sector different from other sectors? Illustrate with a few\ examples.\ 10.\ What do you understand by disguised unemployment? Explain with an example\ \ each from the urban and rural areas.\ 11\.\ Distinguish between open unemployment and disguised unemployment.\ 12.\ fiT\ ertiary sector is not playing any significant role in the development of Indian\ economy\.fl Do you agree? Give reasons in support of your answer\.\ \ \ \ U\ U\ U\ U\ U\ NDERSTNDERST\ NDERSTNDERST\ NDERST\ ANDINGANDING\ \ ANDINGANDING\ ANDING\ E E\ E E\ E\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ CONOMIC\ D D\ \ D D\ D\ EVELEVEL\ EVELEVEL\ EVEL\ OPMENTOPMENT\ \ OPMENTOPMENT\ OPMENT\ 3636\ 3636\ 36 SS\ SS\ S\ ECTORSECTORS\ ECTORS\ ECTORS\ ECTORS\ \ \ \ \ OFOF\ \ OFOF\ OF\ \ \ \ THETHE\ THETHE\ THE\ I I\ I I\ I\ NDIANNDIAN\ NDIANNDIAN\ NDIAN\ E E\ E E\ E\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ 3737\ \ 3737\ 37\ SS\ \ SS\ S\ ECTORSECTORS\ ECTORS\ ECTORS\ ECTORS\ \ \ \ \ OFOF\ \ OFOF\ OF\ \ \ \ THETHE\ THETHE\ THE\ I I\ I I\ I\ NDIANNDIAN\ NDIANNDIAN\ NDIAN\ E E\ E E\ E\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ CONOMY\ 3737\ \ 3737\ 37\ 13.\ Service sector in India employs two different kinds of people. Who are these?\ 14.\ W\ orkers are exploited in the unorganised sector\. Do you agree with this view?\ Give reasons in support of your answer\.\ 15.\ How are the activities in the economy classified on the basis of employment\ conditions?\ 16.\ Compare the employment conditions prevailing in the organised and unorganised\ \ sectors.\ 17.\ Explain the objective of implementing the MG NREGA 2005.\ 18.\ Using examples from your area compare and contrast that activities and functions\ of private and public sectors.\ 19.\ Discuss and fill the following table giving one example each from your area.\ Well managed organisation\ Badly managed organisation\ Public sector\ Private Sector\ 20\.\ Give a few examples of public sector activities and explain why the government\ has taken them up.\ 21.\ Explain how public sector contributes to the economic development of a nation.\ 22.\ The workers in the unorganised sector need protection on the following issues :\ \ wages, safety and health. Explain with examples.\ 23.\ A\ study in\ Ahmedabad found that out of 15,00,000 workers in the city\ , 1\ 1,00,000\ worked in the unorganised sector\.\ The tot\ al income of the city in this year\ (1997-1998) was Rs 60,000 million. Out of this Rs 32,000 million was generated\ \ in the organised sector\. Present this dat\ a as a t\ able. What kind of ways should\ be thought of for generating more employment in the city?\ 24.\ The following table gives the GDP in Rupees (Crores) by the three sectors:\ \ Y\ ear\ Primary\ Secondary\ T\ ertiary\ 2000\ 52,000 48,500\ 1,33,500\ 2013\ 8,00,500\ 10,74,00038,68,000\ (i)\ Calculate the share of the three sectors in GDP for 2000 and 2013.\ (ii)\ Show the dat\ a as a bar diagram similar to Graph 2 in the chapter\.\ (iii)\ What conclusions can we draw from the bar graph?