Following are Sectors of Indian Economy Notes for Class 10 Social Science. These revision notes have been prepared by expert teachers of Class 10 Social Science as per the latest NCERT, CBSE, KVS books released for the current academic year. Students should go through Chapter 2 Sectors of Indian Economy concepts and notes as these will help you to revise all important topics and help you to score more marks. We have provided Class 10 Social Science notes for all chapters in your book. You can access it all free and download Pdf.

Chapter 2 Sectors of Indian Economy Notes Class 10 Social Science

Key Points to Remember:

• Primary Sector: Producing a good by exploiting natural resources is an activity of primary sector. Such as: Agriculture, Dairy fishing forestry and so on.
• Secondary Sector: covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activities. Such as using cotton fiber from plant.
• Tertiary Sector: These activities by themselves do not produce a good but they are an aid or a support for the production process. This sector is known as Service sector also. Such as transport services,insurance services and so on.
• Private sector part of a country’s economic system runs by individuals and companies, rather than the government.
• Public sector usually comprised of organization that are owned and operated by the government and exist to provide services for its citizens.
• Organized sector is a sector where the employment terms are fixed and regular, and the employees get assured work.
• Unorganized Sector is a sector where the employment terms are not fixed and regular, as well as the enterprises, are not registered with the government.
• Gross Domestic product is a monetary measure of the market value of all final goods and services produced in a period i.e. Sum of
Primary sector+ secondary sector + Tertiary sector.
• When more people are working that is needed and even if some
people are removed from work, does not affect the total production.
This situation is called disguised unemployment. It is also known as Hidden unemployment.
• Mahatma Gandhi National Rural Employment Guarantee Act was enacted in 2005 which aims to provide employment of 100 days in a year. If it fails to do so, government will provide unemployment allowances to the people.
1. Primary or agriculture sector. Example-Agriculture, Dairy, Fishing,Forestry etc.
2. Secondary of Industrial Sector. Example-Manufacturing and industrial activities etc.
3. Tertiary or Service Sector. Example – Trade, Transport, Banking, Tourism etc.

Very Short Answer Type Questions

Question Shyama works as a researcher in an Institution. While collecting data she could not classify the working sector of following people.
Help her to do the classification with valid reasons.
A. Yogesh works as lawyer.
B. Shyam Lal Verma runs a dairy.
C. Parmod is an Engineer and works in Industrial sector.

Ans. A. Being a lawyer Yogesh is providing legal services. Therefore his work comes in the Tertiary’ sector:
B. Shyam Lal Verma runs a dairy and he dependent on biological process of the animals and availability of fodder etc. The product milk also is a natural product. So his work comes under the Primary Sector.
C. As Parmod is working in Industry which basically depends upon primary sector for raw material. So his work comes under the Secondary sector.

Question. Ramesh is confused, wheather he is working in organized sector or Unorganized Sector. He is getting Paid leaves with fixed hours of working. Would you please help him to find out in which sector he is working?
Ans. Organized sector

Question. What are the main objectives of Private Sector?
Ans.  To earn more and more profit.

Question. What are the main objectives of Public Sector?
Ans.  To provide basic facilities to all their countrymen with the purpose of social welfare.

Question. What does Underemployment mean?
Ans.  In a situation of underemployment, people are apparently working but all of them are made to work less than their potential. 

Question. How does development of primary and secondary sector demand for services?
Ans. The development of agriculture and industry leads to the development of services such as transport, trade, storage etc.
Greater the development of the primary and secondary sectors, more would be the demand for such services.

Question. Why is Tertiary sector also called the service sector?
Ans.  Since these activities provides services rather than goods, the tertiary sector is also called the service sector.

Question.. Which activity continued to prove largest employer between 1973 to 2013?
Ans.  Agriculture

Question.. Contribution of which sector is largest in GDP?
Ans. Tertiary Sector

Question. Iqbal along with five other members of his family worked as a farmer and produced 50 lakhs tons wheat. Due to some dispute in family two members opted out family business, but still they are able to produce 50 lakh tons Wheat. Can you name such kind of unemployment?

Ans.  Disguised unemployment

Question.. Name the sectors which forms the base for all other products?
Ans. Primary Sector

Question. How does government support both farmers and consumers?
Ans.  The government in India buys wheat and rice from farmers at a fixed price. This is stores in its godowns and sells at a lower price to consumers through ration shops. Here government has to bear marginal cost. In this way, the government supports both farmers and consumers.

Question.. What is MGNREGA stands for? When it was enacted?
Ans. MGNREGA is stands for Mahatma Gandhi National Rural Employment Guarantee Act. It Was ‘implemented in 2005.

Long Answer Type Questions

Question. Differentiate between economic and non-economic activities. Give any two points.
Ans . Economics activities are such activity which gets you some income while performing them. For example, a doctor is earing by treating his patients.
Non-economic activities are the activities from which do not gain anything earn you any income. For example, a doctor treating his own family members doesn’t earn any money.

Question. The workers in the unorganised sector need protection on the following issues:wages, safety and health. Explain with example.
Ans. The employee refuse to follow laws that protects labourers. That is why protection is needed.
The workers are not paid a fair wages and hence need protection.
Job is not secured that is why they need protection.
The workers get no other benefits like provident fund, gratuity, paid leaves, medical benefits etc.
No pension after retirement.

Q.2 Using examples from your area compare and contrast activities and functions of Private and Public sectors. 

Ans.

Q.3 Distinguish between organized and unorganized sector. 
Ans.

Question. What are the various ways to provide employment opportunities in rural areas?
Ans. • Provide loans to small farmers for cultivation, irrigation and so on.
• Dams, canal can be constructed will lead to a lot of employment generation.
• Construction of roads in rural area creates employments in rural community.
• More and more schools should be opened which would create jobs in education sector and literacy as well in rural area.
• To improve the health situation, we need more doctors, nurses health workers to work in rural area.

Question. Explain how does the Public sector contribute to the economic development of a nation?
Ans. • It promoted rapid economic development through creation and expansion of infrastructure.
• It creates the employment opportunities.
• It generates financial resources for development.
• It encourages development of small, medium and cottage industries. It brings the social justice.

Question. Discuss the historical changes in the three economic sectors?
Ans. After independence to 1972 primary sector was prominent in Indian GDP.
As farming method improves and surplus food was produced people channelized their energy towards manufacturing.
Very soon secondary sector gained prominence
Because of development of primary and secondary sector, information and technology, trade, transport etc, tertiary sector gained prominence.
In 2011-12 share of tertiary sector in Indian GDP was approximately 60%.

Question. Why is the tertiary sector becoming the most important in India?
Ans. • It provides basic services to the people. Ex–Hospital, Post Office,Telegraph etc.
• For the development of agriculture and industry, transport and trade like activities are vital
• With the increase of income level of the people more service were needed or demanded by people.
• New services based on information and communication have become essential.
• It provides employment to people in large number.

Question. Mention the major problems faced by farming sector?
Ans.  Unirrigated land 
Fluctuation in income
Debt burden
No job in the off season
Compelled to sell their grains to the local traders soon after harvest.

Question. What are the different types of unemployment in India?
Ans.  Underemployment or disguised employment : A situation where more people are engaged than required. So, even if you turned people out, production will not be affected. It is called underemployment.
Seasonal unemployment : When people are unemployed for a particular season, it is as seasonal unemployment. For example, if farmers are ploughing land only for rabi season then , they, become unemployed for the rest of the season.

Question. How do we create more employment in the agriculture sector?
Ans. Loans could be given to farmers to buy the agriculture equipments Dams can be built to irrigate dry areas.
Seeds and fertilizers could be subsidized.
Storage facilities could be provided.
Transport facilities could be increased.

Question. How do we count the various goods and services and know the total production in each ”sector”?
Ans.  Economist suggests that the’ ‘values of goods and services should be used rather than adding up the actual numbers. The value of goods and services in the three sectors are calculated and then a added up. Not every good(or service), that is produced and sold, needs to be counted. It makes sense, only to include final goods and services.
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 goods and services.
So 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 three sectors gives us the ‘Gross Domestic Product.”

Question. Explain the objective of implementing the MGNERGA 2005.
Ans. • Its aims to provide employment of 100 days in a year.
• All those who are eligible to work would be guaranteed by government. If government fails to do so, it will giveunemployment allowance to people.
• To increase the income and employment to people.
• Every state/region can develop tourism, regional craft, IT etc.for additional employment.

Question. ”There has been a big change in the three sectors of economic activities in India but similar shift has not taken place in the share of employment.” Explain the above statement.
Ans. • In primary sector, modern technology has been introduced in agriculture. With the arrival of green revolution and advanced irrigation methods, there are noticeable changes in this sector.
• Industrial production has also increased several times therefore providing more employment opportunities to “the unemployed and underemployed in this sector.
• There are lots of casual workers in the service sector in urban areas who search for employment on daily wages. In the rural areas too, a lot of casual workers sometimes Intermittently do not get job. Many of them are disguisedly unemployed. So besides changes unemployment still exists in India.