Notes of Sector of Indian Economy Class 10 | Economics CBSE

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Sector of Indian Economy Class 10 Notes

Introduction:- I know that you searching a complete notes of the Sector of Indian Economy. And that are very easy to learn, understand and also important question contains. So you visit the right place in this article we cover every topic from your NCERT Economics chapter 2: Sector of Indian Economy. So let’s start our Sector of Indian Economy chapter with a simple question- WHAT IS PRIMARY SECTOR?

What is Primary sector?

  • Its also known as the agriculture or allied service sector.
  • The primary sector produces goods and services by exploiting natural resources.
  • This sector is unorganized and uses traditional techniques.
  • This sector continues to be the largest employer in most developing countries like India.
  • Primary sector activities are:-
    • Agriculture,
    • Forestry/fishing,
    • Mining,
    • Animal husbandry.

What is Secondary sector?

  • Its also known as in the manufacturing sector.
  • This sector includes those activities in which natural products are changed into final goods.
  • Its organized sector and uses better techniques.
  • It includes manufacturing units at a small scale at large scale and MNC’S.
  • This sector too provides employment to the surplus worker of the primary sector.
  • Secondary sector activities are:-
    • Textile production,
    • Car manufacturing,
    • Handicraft,
    • Other manufacturing industries.
Sector of Indian Economy Class 10 Notes
Sector of Indian Economy Class 10 Notes

What is Tertiary sector?

  • Its also known as the service sector.
  • This sector provides useful service to the primary and secondary sector for the smooth functioning of their working.
  • Its an organized sector and use better techniques.
  • This sector sharing in employment is increasing. New services like the internet, ATM, software companies, etc.
  • Tertiary sector activities are:-
    • Banking,
    • Insurance,
    • Trade,
    • Communication,
    • Lawyer/Doctor

Important definition ➦

  1. Economic activities:- An activity that does give an income in return is called economic activity. For ex:- A teacher teaching in a school is performing economic activity.
  2. Non-economic activities:- An activity that does not give any income in return is called non-economic activity. For ex:- A father teaching his son is performing a non-economic activity.
  3. Primary sector:- This sector produces goods and services by exploiting natural resources. For ex:- Agriculture, mining, overgrazing, rearing of animals.
  4. Secondary sector:- This sector transforms one good into another by creating more utility from it. Forex:- Manufacturing
  5. Tertiary sector:- This sector provides support services to both primary and secondary sectors. For ex:- Banking, trade, communication.

Uses of the classification of economic activities into primary, secondary & tertiary sectors.

  • We can find how many workers are working in different sectors.
  • We can find out what in the share of each sector in GDP.
  • We can find out which sector is growing and which sector is lagging behind.
  • We can also find out the independence of each sector.

How sector interdependence to each other?

  • It’s through the primary sector that secondary and tertiary sectors come into being.
  • The secondary sector requires raw material from the primary sector and service from the tertiary sectors like finance, transportation, and communication.
  • The secondary sector produces goods like a machine that are used by the primary as well as the tertiary sector.
  • The tertiary sector provides support activities to the primary and secondary sectors in the form of expertise and advertisement etc.

State the process of calculation GDP?(imp.)

GDP(Gross Domestic Product) is the sum total of final goods and services produced in a country during an according to year.

  • We calculate GDP to count the value of goods and services produced.
  • Its the market value of final goods and services produced in a country in a year.
  • The final value of goods and services produced in a sector is calculated not the intermediate goods.
  • The final value of the product is taken to avoid a double country.
  • This is because the value of intermediate goods is already counted in final goods.
  • For example- Suppose a farmer sells wheat to a flour mill for 8.Rs. the mill grain it and sells into a baker for 10.Rs. and the baker after converting it into a bread sell to a consumer for 20.Rs.
  • Here the final price of bread is 20Rs. should be added to calculate in GDP, not Rs. 8+10+20=38.
  • Similarly, the final value of the product or service produced is calculated.
  • The sum total of all the final goods and service produced in all the sector are added and we get GDP.

Final goods VS Intermediate goods

Final goods

  • The good which is used either for final consumption or for capital formation.
  • The value of the final good is included in the national income. Ex- television, bread, etc

Intermediate goods

  • The good which is used up in producing the final good and services.
  • The value of intermediate goods is not included in the national income. Ex- flour, cotton, etc.

Historical changes in sector in the developed countries.

  • The history of developed countries indicates that an initial stage of development in the primary sector was the most important sector of economic activities.
  • As the method of farming changed agriculture sector began to prosper(improve). It produced much more food than before most people were also employed in this sector.
  • Over more than 100 years when new methods of manufacturing were introduced factories came up and started expanding.
  • In this secondary sector gradually became the most important in total production and employment.
  • In the past 100years, there has been a further shift from the secondary and tertiary sectors in developed countries.
  • The service sector has become the most important in terms of total production.
  • This is the general pattern observed in developed countries.

Give five reasons for the rising importance of the Tertiary Sector in production? [CBSE 2010, 2020]

  • Tertiary sector:- Its the service sector that provides support to the primary sector & secondary sector.
  • Over the 40years between 1973-74 & 2013-14 while production in all the 3 sectors has increased. It has increased the most in the tertiary sector.
  • The following factor make the tertiary sector important in India:-
  1. Basic service:- services like a hospital, educational institution, post and telegraph service, police station, court, municipal corporation, defense, transport, bank, and insurance are the basic service. In developing countries like India, all these activities are provided by the government.
  2. Development of primary & secondary sector:- The development of primary & service sector lender to the development of services like transport, trade, and storage. The greater development of primary, secondary sector leads to more demand for the service sector.
  3. Rise in the income level:- As per capita income is rising in our country people start demanding many services like eating out, tourism, shopping, private school & hospital, professional training center. We see this change mainly in cities or big towns.
  4. Rise in information technology:- With modernization, some new service based on information & technology has become important & essential like a cyber cafe, call center, etc.
  5. Globalization:- Due to globalization people have become aware of new service, activities & communication because of which the tertiary sector has gained importance.

Name the sector that is the largest employer in India? Why does this sector produce only a quarter of GDP?

  • The primary sector is the largest employer because in India agriculture is our primary work.
  • This sector produces only a quarter of the GDP because of the following reason:-
  1. Productivity in the primary sector is very low because of the use of outdated means of production.
  2. The land holiday is very small
  3. The primary sector lacks modern irrigation facilities dependence on monsoon in the problems.
  4. The government has not been able to provide an effective system of financing & transportation.
  5. Deficiency in accessing the marketing facilities.
  6. Absence of alternative employment in rural areas.
three-sector of economic activities
Three-Sector of Economic Activities

‘There has been a big change in the three-sector of economic activities in India but a similar shift has not taken place in the share of employment’ Explain.

  • In the agriculture sector, the method of farming has changed by the use of chemical fertilizer & pesticides increased the production of cash crops.
  • The use of modern equipment increased irrigation facilities are some important changes.
  • Still more than half(50%) of the worker in the country are working in the primary sector.
  • But they produce only one-quarter 1/4th of the goods.
  • Industrial output increased by 8 times from 1973 to 2003 but employment in the sector increased only 3 times.
  • In the tertiary sector, the production increased by more than 14 times from 1973 to 2003 but employment in the service rose only around 5 times.
  • The secondary & tertiary sectors produce 3/4th of the product were as they employ half of the country worker.
  • The Indian agriculture sector has disguised employment whereas workers in the secondary & tertiary sectors work overtime.
  • Causes of rural employment in India
    • Lack of education & skill
    • Less scope for industrialization
    • Stress on family occupation(disguised employment)
    • No access to opportunities
    • Lack of infrastructure(road, electricity, etc.)


Open employment

  • Under this, the worker is ready to work but is unable to find any work. It can occur in any sector.

Disguised unemployment

  • Under this, the worker is working but if he is removal the production does not fall. It occurs mainly in agriculture.

Under employment

  • This is a situation of underemployment where people are working but all of them are work less than their potential.

What is Disguised Unemployment? Explain. (imp.)

  • Disguised employment:- It’s a situation in which more worker is working inactivity than required.
  • The people who are actually engaged in such activity appear to be employed but are not fully employed.
  • For ex:- if for the cultivation of 1-hectare land 10 workers 15 workers are working in this case 15 workers are disguised as unemployed.
  • In such cases even if the surplus worker is removed the production will not suffer.
  • This type of unemployment is basically found in the agriculture sector.

How to create more employment in Rural reas? Explain with an example. (V.imp.)

  1. The loan should be provided to the small farmers by the government or bank to have more irrigation facilities like well & tube well in order to enable them to grow the second crop.
  2. A new dam & canal should be constructed. This will lead to more employment in the agriculture sector.
  3. Transportation and storage facilities must be improved by the government to provide help to a farmer for farming in the field for transportation and storage.
  4. Banks should provide agriculture credit to a farmer for farming like to buy seeds, fertilizer, agriculture equipment. The bank help in creating employment also.
  5. Industries like Dal mills, cold storage, honey collection center & processing of vegetables should set up in the rural or semi-rural area, such industries will create more employment opportunities for the rural people.
  6. More schools should be opened in rural areas. This will provide jobs to about 20lakh people in the educational sector.
  7. Health service should be improved by opening dispensaries & hospital. This will create a job for doctors, nurses & other staff.
  8. Tourism regional craft industry & information technology(IT) should be encouraged by the government to create more employment opportunities.
NREGA- 2005
NREGA- 2005

Explain the objective of explementary the NREGA-2005?

  • The full form of NREGA is the National Rural Employment Guarantee Act.
  • Its low implement by the government under the right to work.
  • This scheme target Scheduled Caste(SC), Scheduled Tribes(ST) & poor women, who suffer from poverty.
  • To provide a livelihood to the people below the poverty line.
  • This scheme guarantees 100days of wage employment in a year to every rural household in the country.
  • Under this scheme to gram panchayat after proper verification will register households and issue job cards to registered households.
  • The job card is the legal document that entitles a person to ask for work under the act & to get work within 15days of the demanded work.
  • If employment is not provided than allowance would be payable.
  • At the initial stage, it was implemented in 200 districts of India then extended to an additional 130 districts.
  • The remaining district in a rural area was brought under the Act with effect from 1st April 2008.
  • The name changed from NREGA to MNREGA.

In how many part sector divided?

Sector is divided into 2 part:-

  1. Organized sector
  2. Unorganized sector
  1. Organized sector:-
  • The sector is registered by the government.
  • The term of employment is regular work.
  • The sector follows rules, regulations & governed by various laws such as the factories act, minimum wage act, establishment act, etc.
  • A worker in their sector enjoys security.
  • They work only a fixed number of hours. If the worker works more they have to be paid overtime by the employer.
  • Worker gets many benefits from an employer like paid leave, payment during the holiday, provident fund, and pension.
  • The worker gets several other benefits from the employer like safe drinking water facilities and safe working conditions. Ex- banks, hospitals, schools, etc.

2. Unorganized sector:- [CBSE 2020]

  • This sector does not register by the government.
  • The term of employment is not regular.
  • This sector is not governed by any act.
  • Employment is the subject to a high degree of insecurity people can be asked to leave without any reason.
  • There is no provision for overtime.
  • There is no provision for paid leave, sick leave, etc.
  • This type of facility is not provided in the unorganized sector.
  • This sector includes a large number of people who are employed on their own doing a small job etc.

How to protect worker in Unorganized Sector?

As the worker in the organized sector is low paid, not regular, and exploited in different ways, there is a need for their protection. Some following step was taken for this:-

  1. Minimum wage act:- Provision should be made so that the minimum ways act should be passed and implemented strictly.
  2. Labour laws:- Government should pass strict labor laws and ensuring that these laws should be properly implemented.
  3. Checking social discrimination:- The government should take strict action against this employer whose discrimination account of caste, gender & geed.
  4. Basic facilities:- Government should provide affordable health, education, housing & food facilities, better working condition, etc.
  5. Limited working hours:- The government should ensure the regulation of working hours (8hours) & grantee medical facilities.
  6. Help to small scale industries:- In urban area government should help small scale industry in producing raw material & marketing of goods.
  7. Support to the vulnerable group:- The vulnerable people like landless agriculture workers, small & marginal farmers, carpenter, etc. They should be given support by the government.
    1. For example:- A small farmer comprises 80% of the rural household. They should be provided support in procuring seeds, agricultural inputs, credit, shortage facilities, and marketing facilities.

Public sector VS Private sector [CBSE 2012, 19, 20]

Public sector

  • It’s controlled and managed by the government.
  • The main aim of the sector in public welfare or social welfare.
  • This sector provides basic facilities like education, health, food & security of the people. For ex- the Indian railway, post office & BSNL.

Private sector

  • It’s controlled and managed by and individual or group of individuals.
  • The main aim of the sector is to earn maximum profit.
  • The sector provides consumer good to the people. For ex- Reliance, TATA, etc.
role of government in public sector
Role of Government in Public Sector

What is the role of government in Public Sector?

  1. The welfare of the people:-
  • The modern government is a welfare government that looks at the benefit of the citizen.
  • people pay a different type of taxes and government to provide them the facilities like railway, post & telegraph.

2. Large expenditure:-

  • Some activities like the construction of roads need a large sum of expenditure that can not be borne by the private sector.
  • So the government takes up such activities in the interest of people like making roads, bridges, dams harbor, generating electricity, providing irrigation facilities through dams.

3. Support of the government:-

  • There are some economic activities that need the support of the government in the form of subsidy such as the provision of food grain for the poor through ration shops the government buys wheat, paddy, pulse, etc. at a(fair price) higher price from farmer and scale at a lower price at ration shops.

4. Duties of the government:-

  • Its the duty of the government to raise the living standard of the people.
  • It should make arrangements for Quality education and Health Service.
  • In order to take care of the poorest of the country.

5. Other duties of the government:-

  • Pay attention to higher IMR in Odisha(57) & M.P.(59).
  • Availability of safe drinking water.
  • Availability of housing facilities.
  • Food & nutrition for the poor.

What contributes to the Public sector to the economic development of the nation?

  • The public sector promotes rapid economic development through the creation and expansion of infrastructure(road, railway, electricity).
  • It creates employment opportunities.
  • It generates a financial resource for development.
  • The public sector ensures equality of income wealth and there is balanced regional development.
  • It encourages the development of small, medium, and cotton industries.
  • It ensures the easy availability of goods at moderate rates.
  • The public sector contributes to community development e.g. to HDI(Human Development Index) through health & educational service.

About- Sector of Indian Economy class 10 notes

In Sector of Indian Economy class 10 notes we cover so many topics like Public, Private sector, How to calculate GDP, What is GDP and so many other topics we read in Sector of Indian Economy class 10 notes. So if you like Sector of Indian Economy class 10 notes then please give your valuable feedback in the comment box(below).

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