Class 10 Economics Ch 2 – Sectors of the Indian Economy

NCERT CLASS 10 ECONOMICS • DETAILED SOLUTIONS • CHAPTER 2 • SECTORS OF THE INDIAN ECONOMY

Sectors of the Indian Economy

Detailed Solutions & Comparisons

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💡 Key Concepts

Primary Sector: Agriculture, Forestry, Fishing (Nature-based).
Secondary Sector: Manufacturing, Industrial (Transformation).
Tertiary Sector: Services, Transport, Banking (Support).
GDP: Value of all final goods and services produced within a country.

Objective Questions

Question 1

Fill in the blanks using the correct option given in the brackets:

(i) Employment in the service sector has not increased to the same extent as production.
(ii) Workers in the tertiary sector do not produce goods.
(iii) Most of the workers in the organized sector enjoy job security.
(iv) A large proportion of labourers in India are working in the unorganized sector.
(v) Cotton is a natural product and cloth is a manufactured product.

Question 2

Choose the most appropriate answer.

(a) The sectors are classified into public and private sector on the basis of:
Answer: (iii) Ownership of enterprises

(b) Production of a commodity, mostly through the natural process, is an activity in the:
Answer: (i) Primary sector

(d) In terms of GDP the share of tertiary sector in 2013-14 is between ________ per cent.
Answer: (iii) 50 to 60

Question 4

Find the odd one out and say why.

(i) Tourist guide, dhobi, tailor, potter
Answer: Tourist Guide. He is appointed by the government (or organized sector), while dhobi, tailor, and potter belong to the private/unorganized sector.

(ii) Teacher, doctor, vegetable vendor, lawyer
Answer: Vegetable Vendor. He is the only profession that does not require formal education. He belongs to the private and unorganized sector, while the rest are professionally qualified.

(iii) Postman, cobbler, soldier, police constable
Answer: Cobbler. The rest are workers in the public sector, while his profession is part of the private sector.

Descriptive Questions

Question 9

How is the tertiary sector different from other sectors? Illustrate with a few examples.

The tertiary sector is different because it does not produce goods. Instead, the activities under this sector help in the development of the primary and secondary sectors.

Key Differences:

It provides services rather than material products.
These are auxiliary services that support the production process.
Examples: Transport (moving goods), Banking (finance for industries), Communication (coordination). Goods produced in primary/secondary sectors need to be transported and sold; this service is tertiary.

Question 10

What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.

Definition: Disguised unemployment is a situation where more people are engaged in a job than actually required. Even if some are removed, production does not drop. They appear employed but are underemployed.

Examples:

Rural Areas: A family of 8 working on a small farm. If 3 people are removed, the farm output remains the same. Those 3 are disguisedly unemployed.
Urban Areas: Casual workers like plumbers, painters, or petty shopkeepers. A shop might have the whole family working, but the work could be managed by fewer people.

Question 11

Distinguish between open unemployment and disguised unemployment.

Open Unemployment	Disguised Unemployment
When a person has no job and is clearly visible as unemployed.	When a person appears to be employed but is actually working less than their potential.
Does not contribute to production.	Contribution to production is zero or negligible.
Found in industrial sector and landless labourers.	Found primarily in agriculture and unorganized sectors.

Question 12

“Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.

No, I do not agree. The tertiary sector has become the largest producing sector in India (replacing the primary sector) over the last 40 years.

Reasons:

Basic Services: Government responsibility for hospitals, schools, police, and courts has increased.
Support to Other Sectors: Growth in agriculture and industry creates demand for transport, trade, and storage.
Income Growth: Rising income levels lead to demand for tourism, shopping, and private schools.
New Services: Boom in Information Technology (IT) and communication services. The GDP share of the tertiary sector grew from ~40% (1973) to >50% (2003).

Question 15

How are the activities in the economy classified on the basis of employment conditions?

They are classified into Organized and Unorganized sectors.

Organized Sector	Unorganized Sector
Registered by government. Follows rules (Factories Act, etc.).	Outside government control. Rules exist but are not followed.
Job security, fixed hours, paid overtime.	No job security, low pay, no overtime pay.
Benefits: Paid leave, Provident Fund (PF), Medical.	No such benefits. Workers can be fired without reason.

Question 17

Explain the objective of implementing the NREGA 2005.

The objectives of NREGA 2005 (National Rural Employment Guarantee Act) are:

Right to Work: To provide a legal guarantee of work.
100 Days: Guaranteed 100 days of wage employment in a year to rural households.
Unemployment Allowance: If the government fails to provide work within 15 days, it must pay a daily unemployment allowance.
Sustainable Development: Preference is given to work that increases land productivity (water conservation, drought proofing).

Question 21

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

The Public Sector (Government) contributes by:

Infrastructure: Developing roads, railways, and power generation which promotes rapid economic growth.
Employment: Creating jobs so that people can find suitable work.
Financial Resources: Generating resources for further development.
Equality: Ensuring equal distribution of income and wealth to maintain equilibrium.
Support: Encouraging small/cottage industries and ensuring availability of goods at affordable rates.
Human Development: Contributing to HDI via health and education services.

Question 24

GDP Calculation & Share of Sectors (Data Interpretation)

Given Data (Year 2013):
Primary: ₹ 8,00,500 Cr | Secondary: ₹ 10,74,000 Cr | Tertiary: ₹ 38,68,000 Cr

(i) Share of sectors in GDP (2013):
Total GDP = $8,00,500 + 10,74,000 + 38,68,000 = 57,42,500$

$$ \text{Primary Share} = \frac{8,00,500}{57,42,500} \times 100 \approx 13.94\% $$ $$ \text{Secondary Share} = \frac{10,74,000}{57,42,500} \times 100 \approx 18.70\% $$ $$ \text{Tertiary Share} = \frac{38,68,000}{57,42,500} \times 100 \approx 67.36\% $$

Conclusion: The tertiary sector has grown massively, while the primary sector’s share in GDP has reduced significantly (though it still employs a lot of people).