Sectors of Indian Economy

Exercises Page No 35
1. Fill in the blanks using the correct option given in the bracket:

a. Employment in the service sector _________ increased to the same

extent as production. (has / has not)
b. Workers in the _________ sector do not produce goods. (tertiary /
agricultural)
c. Most of the workers in the _________ sector enjoy job security.
(organised / unorganised)
d. A _________ proportion of labourers in India are working in the
unorganised sector. (large / small)
e. Cotton is a _________ product and cloth is a _________ product.
[natural /manufactured]
f. The activities in primary, secondary and tertiary sectors are_________
[independent / interdependent]

Answer a: has not

Answer b: tertiary
Answer c: organised
Answer d: large
Answer e: natural and manufactured
Answer f: interdependent
2. Choose the most appropriate answer.
a. The sectors are classified into public and private sector on the
basis of:

1. employment conditions
2. the nature of economic activity
3. ownership of enterprises
4. number of workers employed in the enterprise

Answer: 3. ownership of enterprises

b. Production of a commodity, mostly through the natural
process, is an activity in _________ sector.

1. primary
2. secondary
3. tertiary
4. information technology

Answer: 1. primary
c. GDP is the total value of _________ produced during a particular
year.

1. all goods and services

2. all final goods and services
3. all intermediate goods and services
 4. all intermediate and final goods and services

Answer: 2. all final goods and services

d. In terms of GDP the share of tertiary sector in 2013-14 is
between _________ per cent.

1. 20 to 30
2. 30 to 40
3. 50 to 60
4. 60 to 70

Answer: 3. 50 to 60
3. Match the following:

Problems faced by farming sector Some possible measures

1. Unirrigated land (a) Setting up agro-based mills

2. Low prices for crops (b) Cooperative marketing

societies

3. Debt burden (c) Procurement of food grains

by government

4. No job in the off season (d) Construction of canals by

the government

5. Compelled to sell their grains to the local (e) Banks to provide credit with
traders soon after harvest low interest

Answer:

Problems faced by farming sector Some possible measures

1. Unirrigated land (d) Construction of canals by the

government

2. Low prices for crops (c) Procurement of food grains by

government
 3. Debt burden (e) Banks to provide credit with low
interest

4. No job in the off season (a) Setting up agro-based mills

5. Compelled to sell their grains to the local traders (b) Cooperative marketing societies
soon after harvest

4. Find the odd one out and say why.

(i) Tourist guide, dhobi, tailor, potter
Answer: Tourist Guide is the odd one out because he or she is appointed
by the Government Department but tailor, dhobi and potter own their
private work.
(ii) Teacher, doctor, vegetable vendor, lawyer
Answer: The Vegetable vendor is the odd one out because he works in
the primary sector, while jobs of teacher, lawyer and doctor come under
the tertiary sector.
(iii) Postman, cobbler, soldier, police constable
Answer: Cobbler is the odd one out because he works in the private
sector while the postman, soldier and police constable work for the public
sector or the organised sector.
(iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio
Answer: Jet Airways is the odd one out because it is owned by a private
company and MTNL, Indian Railways, Air India and All India Radio are
owned by the Government of India
5. A research scholar looked at the working people in the city of
Surat and found the following.

Place of Work Nature of Percentage of

Employment working People

In offices and factories registered Organised 15

with the government

Own shops, office, clinics in 15

marketplaces with formal license
 People working on the street, 20
construction workers, domestic
workers

Working in small workshops

usually not registered with the
government

Complete the table. What is the percentage of workers in the

unorganised sector in this city?
Answer:

Place of Work Nature of Percentage of working

Employment People

In offices and factories registered with the Organised 15

government

Own shops, office, clinics in marketplaces with Organised 15

formal license

People working on the street, construction Unorganised 20

workers, domestic workers

Working in small workshops usually not Unorganised 50

registered with the government

The percentage of workers in the unorganised sector are 70% (50+20)

6. Do you think the classification of economic activities into
primary, secondary and tertiary is useful? Explain how.
Answer: The classification of economic activities into primary, secondary
and tertiary is useful, as it helps to classify the different occupations that
are taken up by the people in the country and how much each sector
contributes to the growth of the country. It is also important because it
helps in asserting that which sector contributes the most in the GDP and
which sector has the scope to employ more people and increase the
National Income.
7. For each of the sectors that we came across in this chapter
why should one focus on employment and GDP? Could there be
other issues which should be examined? Discuss.
Answer: Employment and GDP are two of the most important factors in
the development of a country. Employment and GDP are used to calculate
the overall productivity and National income of a country. If a country has
a high employment rate, its GDP, National Income and per capita income
will automatically increase. Hence, these are the two things which have
been given major emphasis in this chapter. Other issues which should be
examined are as follows:

1. Health care facilities

2. Education
3. Poverty
4. Food Production
5. Nourishment

8. Make a long list of all kinds of work that you find adults around
you doing for a living. In what way can you classify them? Explain
your choice.
Answer: The activities performed by human beings for a living are
classified into three sectors: primary, secondary and tertiary. When we
see people around us, we can classify their employment sector in either of
the three classifications. Activities like cleaning, agriculture, selling
vegetables are examples of the primary sector. Manufacturing of goods is
an example of the secondary sector. Teaching, mining, banking,
transportation are all examples of the tertiary sector.
9. How is the tertiary sector different from other sectors?
Illustrate with a few examples.
Answer: The are activities that help in the development of the primary
and secondary sectors are called tertiary activities. These activities are
different from the primary and secondary sector activities. These
activities, by themselves, do not produce a good but they are an aid or
support for the production process. For example, goods that are produced
in the primary or secondary sector would need to be transported by trucks
or trains and then sold in wholesale and retail shops. These transportation
facilities and shopkeepers come under the tertiary sector. They do not
produce goods but play a very important role in selling and bringing those
goods to the market.
10. What do you understand by disguised unemployment? Explain
with an example each from the urban and rural areas.
Answer: The situation of underemployment, where people are apparently
working but all of them are made to work less than their potential is called
disguised unemployment. In this case, the person considers himself
employed but is actually not working. In rural areas, where agriculture is
the main source of income, this kind of unemployment can be seen often.
If a piece of land requires only three people to work on it and instead five
people are working on it, then the two extra people are said to be in a
situation of disguised unemployment. In urban areas, disguised
unemployment is seen when painters, plumbers, electricians are unable to
find work on a daily basis and work way less than their potential.
11. Distinguish between open unemployment and disguised
unemployment.
Answer: Open unemployment is when a person is willing to work, is
educated but is unable to get a job and work. This kind of unemployment
is visible. On the other hand, disguised unemployment is when a person is
apparently working but is made to work less than his or her potential. This
kind of employment is quite evident in villages where people working in
farms consider themselves employed but are actually working less than
their potential.
12.“Tertiary sector is not playing any significant role in the
development of Indian economy.” Do you agree? Give reasons in
support of your answer.
Answer: No, this is not correct. The tertiary sector is playing a significant
role in the development of the Indian Economy. In the year 2003, the
tertiary sector replaced the primary sector as the most producing sector
in the country. A few reasons to support this are given below:

1. The primary and secondary sectors can only flourish if the tertiary sector is
there to support them.
2. The tertiary sector adds up a lot to the National income of the country.
3. Education, which is the basis of everything, comes under the tertiary sector. A
person working as a teacher comes under the tertiary sector.
4. This sector provides the maximum employment opportunities to the people in
the country.

13. Service sector in India employs two different kinds of people.

Who are these?
Answer: Service sector in India employs two different types of people.
These people are:

1. Highly Skilled labour, which includes teachers, bankers, IT officials, etc. These
people are permanently employed.
2. Less Skilled Labour, which includes vendors, electricians, plumbers, etc. These
people are not permanently employed.

14. Workers are exploited in the unorganised sector. Do you

agree with this view? Give reasons in support of your answer.
Answer: The unorganised sector is characterised by small and scattered
units, which are largely outside the control of the government. There are
rules and regulations but these are not followed. Jobs here are low paid
and not regular. Hence, it is correct to say that workers are exploited in
the unorganised sector because more work is taken from them in
comparison to what they are paid. They have no provisions for extra pay
for overtime and no medical benefits. The biggest problem in working in
this sector is that there is no job security.
15. How are the activities in the economy classified on the basis
of employment conditions?
Answer: On the basis of the employment conditions, the economy can be
classified into two sectors:

1. Organised Sector: Enterprises registered under the Government of India, who

have an employee-friendly environment and are provided with various
facilities including high wages.
2. Unorganised Sector: Small and scattered units which are temporary. The
employees in this sector are paid less.

16. Compare the employment conditions prevailing in the

organised and unorganised sectors.
Answer: In the organised sector, the employees are given higher wages,
medical facilities, a healthy working environment and their jobs are
permanent. They are not liable to look for a new source of income each
day. In the unorganised sector, the wages are low, the employees are
exploited, no extra income for extra time is given, no medical facilities are
provided and the work environment is unhealthy.
17. Explain the objective of implementing the NREGA 2005.
Answer: The National Rural Employment Guarantee Act, 2005 was
introduced with an aim to ensure guaranteed 100 days of employment in
a year to all those who are in need of work. It also states that in the case
of employment not being provided under this act, employment wages will
be given to those left unemployed. Additional employment opportunities
need to be created for people in villages and smaller towns.
18. Using examples from your area, compare and contrast the
activities and functions of private and public sectors.
Answer: In the private sector, the assets and industries are owned by
individuals and in the public sector, industries and enterprises are owned
by the Government. Private sector works to earn profits and the public
sector works to provide facilities to the public and to earn profits. The
common examples of the public sector that we can see around us are
Government Banks, Post Offices, municipal hospitals and Indian railways.
The common examples of the private sector that we can see around us
are IT companies, malls and multiplexes, etc.
20. Give a few examples of public sector activities and explain
why the government has taken them up.
Answer: The public sector activities are set for the betterment of the
public itself. The reason the government has taken up the public sector is
so that proper facilities can be provided to the people of the country.
Banks, transport, irrigation, electricity, water and all the basic things that
are necessary for people, come under the public sector. Providing these
facilities to its citizens is the responsibility of the Government.
21. Explain how the public sector contributes to the economic
development of a nation.
Answer: The public sector is the sector that comes under the government
of India. The reason for the government to take responsibility for this
sector is because the basic necessities of people including water,
electricity, irrigation, all fall under this category. If these departments are
left unattended, it will result in the downfall of the economy of a country
because the growth of the country would stop. The economic
development of a country depends upon the development of the people
and if people are deprived of the basic necessities, the country’s
economic development would be affected. Government encourages small
and large industries to flourish and provides employment under this
section.
22. The workers in the unorganised sector need protection on the
following issues : wages, safety and health. Explain with
examples.
Answer: The unorganised sector is characterised by small and scattered
units, which are largely outside the control of the government. There are
rules and regulations but these are not followed. The workers in the
unorganised sector need protection:
Wages: The income of workers in the unorganised sector is not fixed and
they are barely able to meet the needs to lead a decent livelihood. Hence
proper and fixed wages should be given to these workers so that they can
grow and contribute to the growth of the country. For example – a painter
only gets paid the wages for the days he works and on the other days, he
is jobless and is able to earn nothing.
Safety: No safety is provided to the workers working in the unorganised
sector. There is no job security and anyone can be fired and removed from
their work as per the requirement of the labourers. For example – A labour
working in the construction of a building is left with no work once the
construction is complete and has no guarantee of getting work again.
Health: Health is a very important factor for the growth and development
of the country. The unorganised sector is given no medical security and if
any accident occurs while they are working, the employer is not
responsible for their health. For example – there is no sick leave for
labourers working on daily wages.
23. A study in Ahmedabad found that out of 15,00,000 workers in
the city, 11,00,000 worked in the unorganised sector. The total
income of the city in this year (1997-1998) was Rs 60,000 million.
Out of this Rs 32,000 million was generated in the organised
sector. Present this data as a table. What kind of ways should be
thought of for generating more employment in the city?
Answer:

Total Workers in Total Income Income generated Income generated

Workers Unorganised of City (1997- by organised by unorganised
Sector 1998) sector sector

15,00,000 11,00,000 60,000 million 32,000 million 28,000 million

The table clearly shows that the income generated in unorganised sector
is close to 50% of the total income of Ahmedabad. In order to increase
employment opportunities for the people more industries should be set
up, proper education must be provided to all and proper facilities under
the public sector must be provided to all.
24. The following table gives the GDP in Rupees (Crores) by the
three sectors:

Year Primary Secondary Tertiary

2000 52,000 48,500 1,33,500

2013 8,00,500 10,74,000 38,68,000

(i) Calculate the share of the three sectors in GDP for 2000 and
2013
(ii) Show the data as a bar diagram similar to Graph 2 in the
chapter.
(iii) What conclusions can we draw from the bar graph?
Answer:
(i) In 2000, primary sector = 22.22%, secondary sector = 20.73%, tertiary
sector = 57.04% And In 2013, primary sector = 13.94%, secondary sector
= 18.70%, tertiary sector = 67.36% (ii)

(iii) We can draw the conclusion that the share of the tertiary sector in the
GDP has increased by 10%, while that of the primary sector has almost
halved. The secondary sector has grown by about 2% in the last 13 years.