Sectors of Indian economy Flashcards
How is the Indian economy classified?
On the basis of economic activities:
Public, Private, Joint.
On the basis of employment conditions:
Organized, Unorganized.
On the basis of ownership:
Public, Private, Joint.
Primary Sector?
Agricultural sector.
Forms base for all other sectors.
Eg: Agriculture, mining, forestry, fishing, etc.
Secondary Sector?
Manufacturing sector.
Natural products are changed into other forms through manufacturing. Eg: Factories, textile industries.
Tertiary Sector?
Service sector.
Essential for development of primary and secondary sector.
Eg: Transport, trade, communication, banking.
GDP?
Sum of values of final goods and services produced in all sectors in a particular year provides the total production of a country. This is known as GDP. (Shows economy size.)
Historical changes in primary sector?
- Changing nature of farming (new machineries)
- Excess production
- Emergence of services (storage houses)
Historical changes in secondary sector?
- Migration of people from primary to secondary sector
- As production of goods increased, employment increased.
Historical changes in tertiary sector?
- Has become the most important sector in terms of total production.
- Most working people are employed here. (Observed in developed countries.)
Importance of tertiary sector?
- Development in agriculture and industries leads to development in services.
- Has basic amenities like hospitals, courts, municipalities, transport, education, police, etc.
- Rise in income level of people has increased the demand of eating out, shopping, movies, tourism, etc which are all part of tertiary sector.
- New services based on information and communication technology has become essential and important.
Types of employment?
Unemployment, Underemployment, Disguised unemployment.
Unemplyoment?
Refers to joblessness.
It is a state where a person seeking employment is unable to find it.
Caused due to inflation, drastic changes in working atmosphere.
Visible underemployment?
Refers to when a person who could willingly do full time job is employed part time.
Underemployment?
Occurs when there is a mismatch in availability of job opportunities and availability of job skills required. Types:
Visible, Invisible.
Invisible underemployment?
Occurs when employees in full time jobs dont use their skills.
Disguised unemployment?
When more people are working then it is needed. Eg: In rural areas, all family members work in same field.
