SECTORS OF THE INDIAN ECONOMY

EconomicActivities

Those activities, which generate some income, are known as economic activities.

  PRIMARY SECTOR: RELATE TO FARMING ACTIVITIES(AT BASIC LEVEL)

  SECONDARY SECTOR: relating to manufacturing(processing to finished product)

  TERTIARY SECTOR: provide support services to the other sectors.

 

Comparison of the sectors (on population and production)

 

GROSS DOMESTIC PRODUCT (GDP)

  The value of final goods and services produced in all three sectors during a particular year provides the total production of the sector for that year is called the gross domestic product (GDP) of a country.

  More the GDP, bigger the economy of a country.

HISTORICAL CHANGES IN SECTORS

  At the initial stage of development, primary sector was the most important sector of economic activity in a country.

  Innovation in farming methods led to increase in production.

  People even started to take up jobs in the secondary and tertiary sectors.

  Gradually, the secondary sector became important sector providing employment and contributing to the economic growth.

  Expansion of the secondary sector even led to the growth of the tertiary as it acted as the supporting sector.

  Now, the tertiary sector has become the most important sector in terms of its production and its employability capacity.

 

1 CONTRIBUTION IN THE GDP

  In the period of 1973-74, the primary sectors have contributed the maximum to the GDP.

  But, gradually the tertiary sector expanded and its contribution was the highest in the year 2012-13.

1.1FACTORS BEHIND THE SHIFT IN CONTRIBUTION IN GDP

  The development of agriculture and industry leads to the increase in the development of the service sector.

  The development of primary and secondary sector proportionally related to the tertiary sector.

 

 

2.1 EMPLOYMENT ABILITY OF THE SECTORS

  In the period of 1973-74, 40% was contributed by the primary sector in the GDP of the country.

  During this period the secondary and the tertiary sector contributed only 12% and 48% respectively.

  Employment percent during the period of 1972-73, 74% people of India were engaged in the primary sector while 15% were involved in the tertiary sector.

  In 2013-14, the percent of the contribution of tertiary sector in GDP of the country increased and reached to 67%. The primary sector reduced to 12%.

2.1 DISGUISED UNEMPLOYMENT

  It is a kind of situation when more people are employed than required.

  Increase in the number of people working does not lead to an increase in the level of production.

  This kind of unemployment is clearly visible in the agriculture sector.

  This kind of underemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed; it is also called disguised unemployment.

2.3 WAYS TO GENERATE EMPLOYMENT

1.   Granting loans at the lower rate of interest

2.   Investment in infrastructure

3.   Increasing the efficiency of transportation and storage

4.   Promoting small-scale industries such as mills.

5.   Emphasis on education and training center.

6.   Identifying the potential of an area.

7.   Government welfare schemes like making wells are in near farms, providing electricity, building hospitals etc.

 

3 MGNERAGA

              The central government in India made a law implementing the right to work 200 districts (check updates)called Mahatma Gandhi National Rural Employment Guarantee Act 2005 is known as MGNREAGA 2005.

 

3.1Under MGNREGA 2005:

        In rural areas, all those who can, and require work 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.

 

 

 

4 DIFFERENCE BETWEEN ORGANISED AND UNORGANISED SECTOR

 

ORGANISED SECTOR	UNORGANIZED SECTOR
They are registered by the government and have to follow its rules and regulations.	They are largely outside the control of the government.
Have fixed working hours and are paid for extra hours.	Do not have fixed hours of work with no extra pay for more hours of work.
Workers get paid leaves, payment during holidays, provident funds, medical benefits, etc.	Workers do not get paid leaves, payment during holidays, provident funds, medical benefits, or any other perks.
Workers enjoy the security of a job.	Workers do not enjoy the security of a job.
Forex. 1.banks  (all the government authorized jobs)	For ex. 1.job in private firms               2.job in small shops                 Etc.

 

 

 

 

 

 

5 CLASSIFICATION OF ECONOMIC ACTIVITIES INTO SECTORS (OWNERSHIP)