Sectors of Indian Economy Flashcards
(16 cards)
Determine how the tertiary sector is rising importance.
- Every country has to have certain basic services like schools, hospitals, police stations, banking, etc which is the primary responsibility of the government.
- Since all three sectors are associated with each other, the development of one could lead to the development of the other. e.g. both primary and secondary sectors need services from the tertiary sector like transport, communication, banking, storage facilities, etc.
- When income levels rise, people look for more exclusive services like private schools, private hospitals, shopping malls, restaurants, tourism, etc.
- New services like IT have not only become important but essential as well. So production and demand for these have risen up.
- It is estimated that nearly 20 lakh jobs can be created by the education sector alone. The same holds true in the health sector as well.
“Primary sector was the most important sector of economic activity at initial stages of development.” Evaluate the statement.
The general pattern that has been observed in developed countries is as follows:
(i) The history of developed countries indicates that during the initial stage of development, the primary sector was the most important sector of the economy. As the methods of farming changed and agricultural sector began to prosper, it produced more food than required. At this time, most of the people were employed in this sector.
(ii) Gradually, when new methods of manufacturing were being introduced, factories came up and pro-duction started expanding. In this way, the secondary sector gradually became the most important in production as it also generated employment in factories.
(iii) Over the past century, there has been a further shift from secondary to the tertiary sectors in developed countries. The service sector has become the most important sector.
“Efficient means of transport are prerequisites for fast development of the country.” Support the statement with examples.
(i) They not only help to move the raw material to the factories faster but also help in distribution of the finished goods far and wide to their demand locations.
(ii) Transportation of crude oil and natural gas too is facilitated through pipelines from factories and refineries.
(iii) Mobility of labor force also increases.
Examine the importance of Public sector.
(i) There are many services in society which cannot be provided by the private sector at a reasonable cost.
(ii) Some of the services require huge investments beyond the capacity of private sector. e.g. Electricity generation, construction of railways, dams, bridges, etc.
(iii) Some activities need to be supported by the government. Government encourages the private sector to provide the public with certain services like electricity at affordable prices to people.
(iv) The government has to undergo some losses like:
A. The government has to suffer loss for small-scale manufacturing units otherwise they would shut down.
B. The govt. of India purchases crops from farmers at a fair price and sells them at ration shops at a fair price. This way, the govt. supports both farmers and producers.
(v) There are many activities which are the primary responsibility of the govt. like education, healthcare, etc.
(vi) Govt. has to pay attention to different aspects of human development like provision of safe drinking water, nutritious food, housing, etc to the poor, reduce IMR, and develop the most neglected regions of the country.
What is GDP? How is it calculated?
GDP stands for Gross Domestic Product. It is the final value of goods and services produced in all three sectors of a country during a certain year.
The calculation of GDP is undertaken by the central government ministry.
The calculation of GDP of all three sectors is taken up by different govt. departments.
Only the value of final goods and services are included in the calculation of GDP as it includes the prices of all intermediate goods used in making the final product.
Suggest any three measures through which under employment in agriculture sector can be minimized.
Underemployment occurs when people are working less than what they are capable of. It can be minimized by:
(i) Some members of the family can take part in employment set up by the govt. e.g. MGNREGA provides 100 days of wage employment.
(ii) Small-scale industries can be set up in semi-rural areas . Cold storages, honey collection centers, and industries processing vegetables can be set up.
(iii) Even if some members of the family move out, production will not be affected. Thus, these members of the family can take a loan from cooperative societies and buy land and start cultivation there. They can get help from their family and relatives when needed.
(iv) This way, all the members of the family will be fully employed and the income of the family will be increased. Labor effort will not be divided.
Highlight the difference between primary, secondary and tertiary sectors.
(i) When we produce goods by utilizing natural resources, it is an activity of primary sector, also called agriculture related sector. As it forms the base for all other sectors and satisfies our basic needs, it is called primary sector. e.g. agriculture, poultry, fishing, animal rearing, forestry, gardening, mining, etc.
(ii) The secondary sector, also called industrial or manufacturing sector refers to where natural products are changed to other forms through manufacturing. e.g. sugar mills, biscuit factories, black marketing, etc.
(iii) Activities that help or support development of primary and tertiary sector fall under the tertiary sector/ service sector. This sector produces goods and services that help in production and distribution. e.g. healthcare, banking, education, insurance, administration, transport, etc.
Disadvantages of Unorganized sector?
Non-institutional source of employment is known as unorganized sector which is generally not implemented the rules and regulations that are laid down by the Government regarding employment, wage and working conditions. Unorganized workers have to face the following problems:
(i) Unorganized workers do not get regular employment. Their wages are also not fixed. Wages are generally depends on demand and supply of workers.
(ii) Generally, the health, insurance and social security of the unorganized worker are not taken care by the employer.
(iii) Many rules are made by the Ministry of Labor and various government departments in the interest of workers, but they are ignored in the unorganized sector.
Why is agriculture called the backbone of Indian economy? Explain.
(i) In India, about 52% people were engaged in agriculture sector in 2010-2011.
(ii) It provides raw materials to industries.
(iii) It helps earn foreign exchange for the country through export of agricultural produce.
(iv) The agricultural sector contributes almost one- third of our GDP.
(v) The sector also provides food for our teeming population.
Advantages of organized sector?
(i) People enjoy security of employment.
(ii) Work for fixed hours. (iii) If they work more, they get overtime allowances. (iv) Paid leaves, payment during holidays, medical benefits, safe working environment and pension after retirement.
In what ways can the govt. increase employment in the rural sector?
(ii) Small-scale industries can be set up in semi-rural areas . Cold storages, honey collection centers, and industries processing vegetables can be set up.
(ii) By introducing mega projects like new dams should be constructed and canals should be made
(iii) To identify, promote and locate new industries and services in semi-rural areas.
(iv) Promoting tourism, regional craft industry or new services like IT should be introduced.
(v) Tertiary services should be introduced.
Not all of the service sector is growing equally well. Justify.
Not all the service sector is growing equally well.
(i) Service sector in India employs many different kinds of people.
(ii) At one end there are limited number of services that employ highly skilled and educated workers.
(iii) At the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair persons, transport persons, etc.
(iv) These people barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available to them.
Hence, only a part of this sector is growing in importance.
What is the difference between organized and unorganized sector?
check nb
How can the workers in the unorganized sector be protected? Explain.
(i) Farmers need to be supported through adequate facility for timely delivery of seeds, agricultural inputs, credit, storage and marketing outlets.
(ii) In urban areas, casual workers need government support for procuring raw material.
(iii) Small scale industries also need support for procuring raw material and marketing of the goods.
Who are vulnerable people?
Vulnerable people are those who are likely to get affected during crisis. [examples in nb]
Difference between public and private sectors?
Public sector:
- all assets owned by government
- main motive is welfare of the people
- e.g. airlines, post and telegraph, transport, etc.
Private sector:
- owned by individuals and private organizations
- main motive is to gain profit
- e.g. Tata motors, Mahindra group, reliance industries, Sahara India.
