Sectors of the Indian Economy
Sectors of Economic Activities
Nature of Activity
Activities related to agriculture like agriculture, forestry, fishing, mining,
Activities related to manufacturing and construction , like industrial units
Related to all services like transportation, banking, communication, call- centres, administrative, accounting etc.
Gross Domestic product (GDP)
The value of goods and services in the three Sectors are calculated.
GDP is the value of all final goods and services produced within a country during a particular year.
Comparing the Three sectors
- Primary sector was the most important sector of economic activities at initial stages, the secondary sector gradually became the most important but now 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.
- More than half of the workers are working in the primary sector that produces only a quarter of the GDP. In contrast to this, secondary and tertiary sectors produce four- fifths of the produce whereas they employ less than half of the people.
Disguised or Underemployment
- Workers in the agriculture sector are under-employed, which means more people working in the agriculture sector than is required.
- Underemployment or Disguised unemployment is the situation where people are working but all of them are made to work less than their potential.
- Underemployment can also happen in other sectors like in the service sector where casual workers, painters, plumbers spend the whole day but earn very little and do not find work everyday.
To create more employment
- Government can spend some money or banks can provide loan for disguised unemployment
- Give cheap agricultural credit to the farmer
- Promote and locate industries
Central government in India implemented
National Rural Employment Guarantee Act 2005 (NREGA 2005)
- 100 days guaranteed employment every year to every rural household.
- Unemployment allowance if the government failed to provide employment within 15 days.
- Enforces right to work
- Enforces equal wages for equal work
- Targets SCs, STs, and poor women
- One-third beneficiaries should be women
Sectors in term of Ownership
- Public sector
- Private sector
- Owned/ controlled by private individuals
- Motive to earn profits
- Provide wide range of services
eg. Bajaj ,TISCO etc.
- Owned /controlled by the government
- Welfare motive
- Provide basic services like railways, Post office, police, army,etc.
Working condition in Organised Sectors
- Regular employment
- Better wages
- Good working condition
- Job security
- Fixed working hours
- Leaves (medical, maternity)
- Paid holidays
Working condition in Unorganised Sectors
- Irregular employment
- Less wages
- Poor working conditions
- No job security
- Long working hours
- No leaves
- No paid holidays
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