NCERT Class 10 Economics Chapter 2: Sectors of Indian Economy (Dr. Manishika) | English | CBSE
Summary
TLDRThis video script from an NCRT class 10th Economics chapter discusses the classification of economic sectors into primary, secondary, tertiary, quaternary, and quinary. It explains the role of each sector in the economy and the shift from primary to tertiary activities in India. The script also covers the concept of GDP, the difference between organized and unorganized sectors, and the government's role in supporting various sectors, particularly agriculture and the unorganized sector. It emphasizes the need for job security and social security for workers and the importance of public distribution systems.
Takeaways
- 🌱 The economy is traditionally divided into three sectors: primary (agriculture, mining), secondary (manufacturing, construction), and tertiary (services).
- 📚 More recent classifications include the quaternary sector (knowledge-based services like research and education) and the quinary sector (high-level decision-making roles).
- 🏭 The secondary sector involves transforming natural resources into products, such as turning raw materials into finished goods.
- 🚚 Tertiary sector activities provide support to the primary and secondary sectors, including transportation, communication, banking, and trade.
- 🧠 The quaternary sector is characterized by intellectual activities, including research and development, consultancy, and higher-order services.
- 💼 The quinary sector comprises top executives and officials, focusing on decision-making roles within organizations.
- 📊 GDP (Gross Domestic Product) is calculated by summing the value of final goods and services produced in an economy, avoiding double counting.
- 🌐 There's a shift in India's economy from primary sector activities to tertiary sector activities, yet employment in the primary sector remains high.
- 🏡 The tertiary sector is the largest contributor to India's GDP, with services like healthcare, education, and banking expanding into rural areas.
- 🔄 Despite industrial output increasing significantly, employment growth in the industrial and service sectors has not kept pace, indicating underemployment and disguised unemployment.
- 🏛️ The government plays a crucial role in supporting various sectors, especially agriculture, through minimum support prices, subsidized food grains, and public distribution systems.
Q & A
What are the three primary sectors of the economy according to the NCRT textbook?
-The three primary sectors of the economy are the primary sector, secondary sector, and tertiary sector.
What activities are included in the primary sector?
-The primary sector includes activities that are directly dependent on natural resources, such as agriculture, dairy, mining, fishery, and forestry.
How does the secondary sector transform natural products?
-The secondary sector changes the form of natural products, such as transforming bricks from the earth into buildings, in industries or factories.
What is the tertiary sector and what are its main activities?
-The tertiary sector provides support services to the primary and secondary sectors, including transportation, communication, banking, storage, and trade.
What are the quaternary and quinary sectors, and how do they differ from the traditional three sectors?
-The quaternary sector involves intellectual activities like research, education, and consultancy, while the quinary sector includes top-level decision-making roles. They are recent classifications that extend beyond the traditional three-sector model.
Why is it important to avoid double counting when calculating goods and services?
-Avoiding double counting ensures that the product is added only once, preventing the overestimation of the value of goods and services in economic calculations.
What is GDP and how is it calculated?
-GDP, or Gross Domestic Product, is the summation of the production from primary, secondary, and tertiary activities. It represents the total value of final goods and services produced within a country.
How does the shift from the primary sector to the tertiary sector affect employment and GDP in India?
-Despite a shift towards the tertiary sector, employment in the primary sector remains high due to disguised unemployment. However, the tertiary sector contributes the most to GDP, indicating a disparity between employment and economic value.
What are the organized and unorganized sectors, and how do they differ?
-The organized sector is formal, with assured employment, regulations, job security, and benefits. The unorganized sector is small, scattered, with irregular employment and lower pay, often lacking job security and benefits.
How does the Indian government support the unorganized sector?
-The Indian government supports the unorganized sector through social security projects, job security measures, land consolidation acts, and by focusing on sectors with a high percentage of SC/ST and OBC populations.
What role does the government play in supporting the agricultural sector and farmers?
-The government supports farmers by providing minimum support prices, subsidized food grains through public distribution systems, and other facilities like education, health, and banking.
Outlines
🌱 Understanding Economic Sectors
This paragraph introduces the classification of economic sectors as per the NCRT textbook, which traditionally includes the primary, secondary, and tertiary sectors. It then expands on this by discussing the quaternary and quinary sectors. The primary sector is associated with direct natural activities such as agriculture, dairy, mining, fishery, and forestry, which are solely dependent on natural resources. The secondary sector involves transforming natural products, typically in industries and factories, and includes both small-scale and large-scale setups. The tertiary sector provides support to the primary and secondary sectors through services like transportation, communication, banking, storage, and trade. The quaternary sector encompasses intellectual activities like research, education, and consultancy, while the quinary sector involves top-level decision-making by executives and officials.
📊 GDP Calculation and Sector Analysis
The paragraph delves into the concept of Gross Domestic Product (GDP), which is the sum of the production from primary, secondary, and tertiary sectors. It explains the importance of counting goods and services to avoid double counting, using the example of a wheat supply chain that ends with the production of biscuits. The discussion then moves to the classification of GDP based on the sectors' contributions to the economy, highlighting the shift from primary to tertiary sector activities in India. It points out the disparity between employment in the primary sector and its contribution to GDP, indicating a presence of disguised unemployment. The tertiary sector is noted as the largest producing sector in India since 2000, with a growing emphasis on services in both rural and urban areas.
🏭 Changes in Sector Dynamics and Employment
This paragraph discusses the transformation of economic activities in rural areas, with a shift from agriculture to service sector activities like healthcare, education, and banking. It also addresses the decentralization of industrial setups, leading to the growth of the secondary sector in rural areas. The development of agriculture has spurred the need for better transport and storage facilities, further boosting the tertiary sector. The paragraph also notes the increase in tertiary sector activities like tourism and restaurants with rising incomes. It points out the discrepancy between industrial output and employment growth, suggesting a need for more employment opportunities. Various measures to increase employment in different sectors are suggested, including irrigation, transportation, banking, education, and tourism. The paragraph also touches on the National Rural Employment Guarantee Act, which ensures a minimum of 100 days of employment per year in rural areas.
🏗️ Sector Classification and Government Support
The final paragraph focuses on the classification of sectors based on the formal structure, distinguishing between the organized and unorganized sectors. The organized sector is characterized by formal employment, job security, and benefits, while the unorganized sector is marked by small-scale, scattered employment with irregular job patterns and lower pay. The paragraph emphasizes the need for social security for workers in the unorganized sector and discusses government efforts to provide support, such as land consolidation acts and employment guarantees. It also covers the public and private sector classifications, with public sector activities being government-controlled and funded through taxes. The government's role in supporting farmers, providing education, health facilities, and subsidized goods is highlighted. The paragraph concludes with a summary of the topics covered in the economics class and an invitation to explore further topics in upcoming sessions.
Mindmap
Keywords
💡Primary Sector
💡Secondary Sector
💡Tertiary Sector
💡Quaternary Sector
💡Quinary Sector
💡Gross Domestic Product (GDP)
💡Disguised Unemployment
💡Organized Sector
💡Unorganized Sector
💡Public Sector
💡Private Sector
Highlights
Introduction to the NCRT class 10th Economics chapter 2 on sectors of the economy.
Explanation of the primary sector and its dependence on natural resources.
Description of the secondary sector focusing on the transformation of natural products.
Tertiary sector's role in providing support services to primary and secondary sectors.
Introduction of the quaternary sector involving intellectual activities like research and education.
Quinary sector as the topmost level of services involving decision-making roles.
Importance of avoiding double counting when measuring goods and services.
Example of how to count the value of goods and services in the production chain.
Definition and calculation of Gross Domestic Product (GDP).
Difference between Gross Domestic Product (GDP) and Net Domestic Product (NDP).
Sector-wise classification of GDP and its significance in understanding the economy's size.
Shift from primary to tertiary sector activities in India's economy.
Disguised unemployment and underemployment issues in the primary sector.
Growth of the tertiary sector in India and its contribution to GDP.
Ways to create more employment opportunities in various sectors.
Classification of sectors based on formal structure into organized and unorganized sectors.
Differences between organized and unorganized sectors in terms of job security and benefits.
Government's role in supporting the unorganized sector and providing social security.
Public and private sector activities based on ownership.
Government support to farmers through minimum support prices and public distribution system.
Government's role in providing essential services like education, health, and safe drinking water.
Transcripts
again we'll be discussing the ncrt class
10th Economics chapter 2 that is sectors
of economy when we classify the sectors
we predominantly say there are three
sectors the primary secondary and the
tertiary sector so that is as per uh
when we follow the ncrt textbooks
however under this session we would be
discussing two more important sectors of
recent you those are the quaternary
sector and the quinary sector now let's
first start with the primary sector so
as the name suggests it is related to
primary activities
so everything that relates directly to
nature would come under primary sector
so it's dependent
predominantly or I would say solely on
the natural factors for example
agriculture Dairy mining fishery and
Forestry so all these are directly
dependent on the natural resources and
therefore they are classified under
primary sector the next is the secondary
sector under secondary sector what we
are doing is we are changing the form of
the natural product that we have so it
could be either in the industries in the
factories now these could be either
home-based Industries or big industrial
setups so it could be workshops small
factories big factories or home-based
Artisan workshops we can say so all
these are classified under industrial
sector so we also call secondary sector
as industrial sector for example from
the earth we get bricks
and we transform these breaks or use
these breaks to make the building and
therefore what we are trying to explain
here is from the natural resource that
we are getting we are changing it to
some other form to use it or to utilize
it and this is not a direct product from
the nature so from the nature you direct
you don't directly get the buildings as
such the next is the tertiary sector
under the tertiary sector what we do is
we try to explain any kind of support
that is given to primary or secondary
sector so any support that we provide to
primary or secondary sector would be
classified as tertiary sector so for
example
I have an agricultural produce on my
piece of land and this agricultural
produce that is extra on my piece of
land I want to transport it to some
other region so some other set of land I
want to transport this extra
agricultural produce so what we do is
we'll try to use transportation and this
Transportation would be a tertiary
sector because we are providing a
Support Facility to The primary sector
so again Transportation communication
banking storage trade all these are kind
of tertiary sector activities now
of recent what we have done is we have
further classified tertiary sector under
different hands so whatever services are
generated are called as tertiary sector
therefore we also call this sector as
service sector similar to the secondary
sector which is also known as industrial
sector now when we extend the dimension
of tertiary sector we can
go as quaternary sector and queenery
sector quaternary sector involves
intellectual activity so all research
and education research and development
IIT related jobs consultancy jobs all
these would fall under ordinary services
or quaternary sector because we are
adding something
to the services so all kind of better
off services or higher order services
that would be a good work to you so all
kind of higher order Services would be
classified under quaternary sector
further the topmost level of services
which is or which involves decision
making would be part of quinnary sector
and this predominantly includes the top
Executives and the top officials so
these are the five sectors that we talk
about however under ncrt we have broadly
classified these under three sectors so
for the remaining lecture we will work
around with those three sectors as the
predominant basis
now how do we count goods and services
now this is a very very important
concept to understand to avoid any kind
of double counting what we need to do is
we need to make sure that the product
that we are adding is added only once so
there is a single edition of the product
so let's take an example the farmer
Supplies Wheat to the floor Mill at a
rate of rupees 8 per kg the floor meal
grinds the wheat and provides it to the
biscuit Factory at the rate of 10 Rupees
per kg and finally this biscuit Factory
uses flour sugar Etc and packaging and
finally provides the pack biscuits at a
rate of rupees 20 per packet what does
this mean now this Fat Biscuit would
have the ingredient of wheat
the biscuit Factory would again have
ingredient as wheat flour mill would
again have ingredient as wheat and the
farmer is definitely supplying wheat so
this wheat is added at all the four
steps now if I take
wheat at this stage
that won't be the correct way to add it
because this wheat is again
our ingredient here therefore whenever
we are counting goods and services it's
very important that we go on for the
final value that is counted and final
value that is the pack biscuit would
automatically include all the
intermediate stages so all the
intermediate stages which will be using
wheat would automatically be included in
the final product so whenever we are
counting goods and services we go for
the final product and not for the
intermediate product that's a very very
important concept to understand now
let's talk about what is GDP or gross
domestic product
now gross domestic product is the
summation of the production that is done
through the primary activity secondary
activities as well as the tertiary
activities so the value of all these
final goods from all these three sector
would come towards the gross domestic
product
and when we talk about the gross net
product the net domestic product sorry
the net domestic product would remove
any kind of depreciation from this gross
amount and that would give you the net
product so you have the GDP minus
depreciation
that would give you NDP that's the net
domestic product so any kind of losses
that you are incurring in the process
would be subtracted from the final value
of goods and services and that would
lead you to the net domestic product and
this GDP helps us understand how big the
economy is now we will understand the
classification of GDP based on various
sectors like if we broadly talk about
the various countries India is
predominantly an agricultural land so
most of the people here are employed in
agricultural sector
so primary sector becomes important for
China its manufacturing that is
important however if we take example of
United States it would be the service
sector that would have a predominant
position however in India the the trend
is changing and there is a shift from
The primary sector activities to
tertiary sector activities now the most
important thing to note here is however
there is a shift from primary sector
activities to tertiary sector activities
the employment in terms of employment we
still have the highest employment for
primary sector activities
however if we talk about the value of
the goods and services that we are uh
producing so you have the GDP in terms
of GDP you have tertiary sector that
contributes the highest however despite
of the fact that most of the people are
employed in primary sector that means
the employment in primary sector is
extra so there are extra people engaged
in primary sector activities even that
means even if I remove those people or I
take those people away from The primary
sector activity
my net output would not change so there
would be no impact on my output even if
I remove a set of people from that
complete
uh primary sector activity that means
you have a kind of disguised
unemployment
that is present or prevalent in The
primary sector so we will see further
more about it now
the tertiary sector is the largest
producing sector in India since 2000
what is happening is in villages it was
predominantly an agricultural base till
now however with changing 10 Trends
there are more services that are moving
into Villages these services are in form
of healthcare
these are a form of Education these are
in form of banking and all these
activities are directly or indirectly I
would say these are kind of service
sector activities again with the
changing trends you have kind of
decentralization of industrial setup
that is taking place and smaller
Industries are being located to semi
herbal and Rural Hinterlands therefore
you have numerous industrial sector or
secondary sector that is growing up in
the nearby Villages again with the
development of Agriculture there is a
need to increase the transport because
whatever is produced must be transported
and stored so you have agriculture
development that would again lead to
development of the tertiary sector
again with increasing income more people
are moving towards tourism restaurants
so all these are tertiary sector
activities so again we can say the idea
of tertion sector activity is nowadays
increasing in India and whatever new
services are coming up specifically in
the hubs like Bangalore you have the uh
the information Technology Centers so
those are again the tertiary sector
activities that are crop booming up now
what is important to think around here
is
our industrial output has increased
eight times since the past decades
however the employment has risen by only
0.2.5 times that means we are producing
more but the employment for industrial
sector is not matching it again service
sector production has increased 11 times
but employment has increased by less
than one percent when it comes to
agriculture we have more than 50 percent
of the population that is engaged in
agriculture which is contributing to
less than 25 percent of the net GDP of
the nation that means as we talk there
is the problem of underemployment or
disguise and unemployment that is seen
and because of this you have extra
workers that are present on the field
even if I remove those worker there
would be no impact on the final outcome
or the final output so what should be
the ways by which we can create more
employment
by providing irrigation facilities so
more people would be involved in the
task of irrigating and channelizing or
Channel diversions then you would have
investments in transport sector so more
people getting involved in
transportation banking sector Health
sector education sector moving of
industries from core urban areas to
semi-urban and Rural vicinities opening
up cold storage facilities for
agricultural produce and the kind of
perishable produce that we have
as the statistics show only two-thirds
of the children attend school so there
is a need for more education
and therefore opening up of schools
would require more staff so again there
would be increase in the tertiary sector
and employment
there would be Improvement in tourism
and there is
a scope for an extra 35 lakhs jobs that
could be generated by tourism
again one of the missions that is
National rural employment guarantee at
2005 State a guarantee of minimum of 100
days of employment per year that means
if
government is unable to fulfill these
hundred days of an employee employment
the government would have to pay the
compensation in lieu of these hundred
days
so this is a kind of employment
guarantee that is being provided in the
rural areas so all these efforts would
help definitely increase the employment
opportunities for those who are
predominantly struck up in the areas of
underemployment or disguised
unemployment now when we classify
sectors we can we already classified one
way where we talked about the primary
secondary and the tertiary sector based
on the type of activities then based on
the formal structure or the structure we
have two types of sectors that is the
organized sector and the unorganized
sector organized sector is much more
formal so there is assured employment it
comes under the regulations of factory
act minimum wages act the organization
must be registered again since it's a
kind of set organization you would have
more job security you would have to work
for fixed hours there would be a paid
leaves holidays vacations and all the
benefits that would be given to the
employee medical benefits and retirement
benefits are also part of organized
sector
however when it comes to unorganized
sector it is more small and Scattered
you do not have a whole day guarantee or
a full day employment again if you have
a full day employment there is no
guarantee that you would have the
employment every day every next day so
it's kind of very seasonal or
fluctuating employment that one has so
there are irregularities in the job
structure and the unorganized sector is
paid very less as compared to the
organized sector again they are devoting
less as to work and there is kind of
seasonal employment that is seen
the important thing to note here is the
concept of social security that was
recent that is being recently in news so
the unorganized sector is the basic
Focus for the Social Security projects
that are moving forward in India so for
this you must refer the complete class
on Social Security in India where we
have covered the various schemes of
Social Security
specifically which would help the
unorganized sector move forward now how
can you protect the workers of
unorganized sector
first of all the most important thing is
they should not have the fear of losing
the job so there is job security that is
essential element for protecting the
unorganized sector again some of the
organized sectors are shifting towards
unorganized sectors in order to evade
tax and that should be controlled or
curved
80 percent of the farmers are small and
marginal Farmers so you have kind of a
huge number of landless laborers that
are employed in the on those patches of
land so there should be a kind of land
consolidation acts that should move
forward that would help in kind of
proper organization or cooperative
farming that could be again a solution
for getting a more organized framework
for agricultural laborers Street vendors
red Pickers casual workers in
construction and trade are all part of
unorganized sectors again majority of
the people from uh scst and obesities
are part of an organized sector
all these could be curved only by
government efforts because government is
the sole motive or the Mover of changes
specifically for the unorganized sector
the final classification of sectors is
based on ownership based on ownership we
can say there can be either public
sector activities or private sector
activities private sector activities are
controlled by private companies like
Tata Reliance Etc however when it comes
to public sector companies they are
under the government influence so all
the companies like sale the steel
Authority then you have the post offices
Railways are part of the public system
and you have the only way the money is
generated is through taxes so government
finally is getting money from the taxes
and it is using the same money for the
overall development of the nation now
how does the government support the
farmers we have already covered this in
in class 9 chapter we have talked about
the public distribution system the
buffer stocks just a quick recap of
those government can support
for cheap education or free education
for health facilities for banking
facilities for subsidized electricity to
Industrial setups besides this
government supports the agricultural
laborers by providing uh the minimum
support price for their crop even if
there is a kind of drought of a mean
situation that occurs the farmer would
get a minimum base price and that would
be the minimum support price that the
FCI provides to the farmers again the
people
who are living below poverty lying are
provided subsidized food grains and
these subsidized food grains are
provided through the various fare shops
or we call as the the fair price shops
or the Russian shops and this occurs by
means of the public distribution system
that we have again government has an
important role in providing Safe
Drinking Water housing and nutrition
facilities so with this we cover the
class 2 sorry the class 10 chapter 2 for
economics will be covering further
Topics in economics in the coming
sessions have a good day
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