Sectors of the Indian Economy

When we produce a good by exploiting natural resources (Agriculture, Dairy, Fishing, Forestry). It is the base for all other products.

Natural products are changed into other forms through ways of manufacturing (Industrial activity). e.g., Cotton to Cloth, Sugarcane to Sugar.

Activities that help in the development of Primary and Secondary sectors. They do not produce a good but provide a service (Transport, Banking, Storage, Trade). Also called Service Sector.

The value of all final goods and services produced within a country during a particular year. It shows the size of the economy.

Intermediate goods (like flour used for biscuit) are already included in the value of the final good (biscuit). Counting them separately would be double counting.

Initially Primary is most important. Then with factories, Secondary becomes important. In developed countries, a shift to Tertiary sector is observed.

1. Basic services (Hospitals/Schools) required. 2. Agriculture/Industry development needs transport/trade. 3. Income rise leads to demand for tourism/shopping. 4. New services (IT).

In the Primary Sector (>50%). However, it produces only 1/6th of GDP. This indicates Disguised Unemployment.

Situation where people are apparently working but all of them are made to work less than their potential. If some are removed, production doesn't drop.

1. Irrigation (Dams/Canals). 2. Cheap Credit. 3. Transport/Storage. 4. Local Industries (Dal mills/Honey). 5. Education/Health sector expansion.

Right to Work. Guarantees 100 days of wage employment to rural households. Focus on work that increases land productivity.

Enterprises where terms of employment are regular. Registered by govt. Follow rules (Factories Act). Workers get job security, paid leave, PF, medical.

Small and scattered units outside govt control. No rules followed. Low pay, no job security, no benefits. (e.g., Street vendors, landless labourers).

Checking exploitation, providing safety gear, minimum wages, and social security (pension/insurance).

Government owns most of the assets and provides all the services. Motive is public welfare, not just profit. (Railways, Post Office).

Ownership of assets and delivery of services is in the hands of private individuals or companies. Motive is profit. (TISCO, Reliance).

1. To provide heavy infrastructure (huge cost). 2. To ensure reasonable rates. 3. To support farmers (buying grain). 4. To provide health/education to all.

Goods used up in producing final goods.

Employment only during specific seasons (Harvesting).

Central Statistics Office (CSO).

Primary sector provides raw materials.

Tertiary sector is largest producer in India (in value).

Primary sector is largest employer in India.

Disguised unemployment is hidden.

Open unemployment is visible.

Planning Commission (NITI Aayog) says 20 lakh jobs can be created in Education.

Tourism can employ 35 lakh people.

50-60% people depend on agriculture.

Organized sector employs only a small %.

Unorganized sector employs the vast majority.

Unorganized workers are vulnerable.

SC/ST/OBCs are majority in unorganized sector.

Public sector provides reasonable cost.

Private sector is profit driven.

TISCO is private.

Railways is public.

Government spends on Health/Education.

Safe drinking water is government responsibility.

Government buys wheat/rice at MSP.

Ration shops provide subsidized food.

MGNREGA passed