Sectors of indian economy-3 Flashcards
why is the tertiary sector so important
First, in any country several
services such as hospitals,
educational institutions, post and
telegraph services, police stations,
courts, village administrative offices,
municipal corporations, defence,
transport, banks, insurance
companies, etc. are required. These
can be considered as basic services.
In a developing country the
government has to take responsibility
for the provision of these services.
Second, the development of
agriculture and industry leads to the
development of services such as transport, trade, storage and the like,
as we have already seen. Greater the
development of the primary and
secondary sectors, more would be the
demand for such services
Third, as income levels rise, certain
sections of people start demanding
many more services like eating out,
tourism, shopping, private hospitals,
private schools, professional training
etc. You can see this change quite
sharply in cities, especially in big cities.
Fourth, over the past decade or so,
certain new services such as
those based on information and
communication technology have
become important and essential. The
production of these services has been
rising rapidly.
what are the drawbacks in the growth of the teritary sector
However, you must remember that
not all of the service sector is growing
equally well. Service sector in India
employs many different kinds of
people. At one end there are a limited
number of services that employ highly
skilled and educated workers. At the
other end, there are a very large
number of workers engaged in
services such as small shopkeepers,
repair persons, transport persons,
etc. 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
why wasnt thr a shift of employment despite the shift in prodcution
It is because not
enough jobs were created in the
secondary and tertiary sectors.Even though industrial output or the
production of goods went up by
more than nine times during the
period, employment in the industry
went up by around three times. The
same applies to the tertiary sector
as well. While production in the
service sector rose by 14 times,
employment in the service sector
rose around five times
where are most people employed
As a result, more than half of the
workers in the country are working
in the primary sector, mainly in
agriculture, producing only about
one sixth of the GDP. In contrast to
this, the secondary and tertiary
sectors produce the rest of the
produce whereas they employ less
about half the people.
what does this imply with agriculture
it means is that there
are more people in agriculture than
is necessary. So, even if you move
a few people out, production will
not be affected. In other words,
workers in the agricultural sector are
underemployed
describe the situation of underemplyment
the situation of
underemployment is one where people
are apparently working but all
of them are made to work less
than their potential. Each one is working, none is idle, but in actual fact their labour effor is getting divided. Everyone is doing some work but no one is fully emplyed. Most people engage in such activities becaus they dont have other work opportunities.This kind of underemployment is hidden in
contrast to someone who does not
have a job and is clearly visible as
unemployed. Hence, it is also
called disguised unemployment.
is this type of undremplyment confined to the primary sector
This underemployment can also
happen in other sectors. For
example there are thousands of
casual workers in the service
sector in urban areas who search
for daily employment. They are
employed as painters, plumbers,
repair persons and others doing
odd jobs. Many of them don’t find
work everyday. Similarly, we see
other people of the service sector
on the street pushing a cart or
selling something where they may
spend the whole day but earn
very little. They are doing this
work because they do not have
better opportunities.
how can employment be increased in agriculture
-The government can spend some
money or banks can provide a loan,
to construct a well for farmer families to
irrigate the land.
-damns and canals can be constructed to irrigate many farms which can lead to eployment generation in agriculture.
-if the govt invests some money in transportation and stoarage of crops and make better rural roads so mini trucks can reach everywhere, it will be easier to sell the crops. this will increase emplyment in agriculture and also in services like transport/trade.
-the local bank can provde credit to farmers at a reasonable rate of interest so they can buy agricultural equipment.
-identify,promote and locate industries and services in semi-rural areas where a large number of people may be employed.
-setting up dak mills can help procure and process pulse crops to be sold in cities.
-opening a cold storage could help farmers store potatoes/onions and sell them when price is good.
-in villages near forest areas, honey collection centres can be set up so farmers can sell their wild honey.
-indsutries that process vegetables and agricultural proudce can be set up, to help farmers sell these in outside markets.
how can work be instroduced in eduction and hospital institutioons
If more children are
to attend schools, we will require more
buildings, more teachers and other
staff. A study conducted by the
erstwhile Planning Commission (now
known as NITI Aayog) estimates that
nearly 20 lakh jobs can be created in
the education sector alone. Similarly,
if we are to improve the health
situation, we need many more doctors,
nurses, health workers etc. to work
in rural areas. These are some ways
by which jobs would be created and
we would also be able to address the
important aspects of development
how can jobs increase in tourism sector
Every state or region has potential
for increasing the income and
employment for people in that area.
It could be tourism, or regional craft
industry, or new services like IT. Some
of these would require proper
planning and support from the
government. For example, the same
study by the Planning Commission
says that if tourism as a sector is
improved, every year we can give
additional employment to more than
35 lakh people.
what is the mgnrega
We must realise that some of the
suggestions discussed above would
take a long time to implement. For the
short-term, we need some quick
measures. Recognising this, the
central government in India made a
law implementing the Right to Work in about 625 districts of India. It is
called Mahatma Gandhi National
Rural Employment Guarantee Act
2005 (MGNREGA 2005). Under
MGNREGA 2005, all those who are
able to, and are in need of, work in
rural areas are guaranteed 100 days
of employment in a year by the
government. If the government fails in
its duty to provide employment, it will
give unemployment allowances to the
people. The types of work that would
in future help to increase the
production from land will be given
preference under the Act.
