SECTORS OF THE INDIAN ECONOMY || Economics || Class 10 || Chapter 2 || Part 10 [ LET’S RECALL ]

 LET’S RECALL

With so many activities taking place around us, one needs to use the process of classification to think in a useful manner. The criterion for classification could be many depending on what we desire to find out. The process of classification helps to analyse a situation. In dividing the economic activities into three sectors — primary, secondary, tertiary — the criterion used was the ‘nature of activity’. On the basis of this classification, we were able to analyse the pattern of total production and employment in India. Similarly, we divided the economic activities into organised and unorganised and used the classification to look at employment in the two sectors. What was the most important conclusion that was derived from the classification exercises? What were the problems and solutions that were indicated? Can you summarise the information in the following table?

Table 2.4: Classifying Economic Activities

Sector	Criteria Used	Most Important Conclusion	Problems Indicated and How They Can Be Tackled
Primary, Secondary, Tertiary	Nature of activity	Majority of people are engaged in the primary sector, but it contributes the least to GDP.	- Problem: Low productivity in agriculture. - Solution: Improve technology, irrigation, and provide better seeds, fertilizers, and credit to farmers.
Organised, Unorganised	Structure of employment	Most workers are in the unorganised sector with poor working conditions.	- Problem: Lack of job security, low wages, and no benefits in the unorganised sector. - Solution: Government support through laws, social security, and better enforcement.

Explanation:

1. Primary, Secondary, Tertiary Sectors:

   • The classification shows that while most people work in the primary (agricultural) sector, it has the lowest contribution to the country's income (GDP).
   • This indicates a need to shift more people to secondary (industrial) and tertiary (service) sectors to balance employment and income.
   • Problems like low agricultural productivity need to be tackled by better infrastructure, education, and government policies.

2. Organised and Unorganised Sectors:

   • The classification reveals that the majority of workers are employed in the unorganised sector, where they face poor working conditions, lack of benefits, and job insecurity.
   • To tackle these problems, policies like minimum wage laws, social security schemes, and better implementation of labour laws are needed to protect workers' rights.

Difficult Words:

1. Criterion (मानदंड): A standard or rule used for judgment.
2. Productivity (उत्पादकता): The efficiency of production.
3. Irrigation (सिंचाई): The supply of water to crops.
4. Social Security (सामाजिक सुरक्षा): Government protection for workers, such as pensions and health care.