Sectors Of The Indian Economy: Class 10 Economics NCERT Chapter 2

Key Features of NCERT Material for Class 10 Economics Chapter 2 –  Sectors of the Indian Economy 

In the last chapter 1: Development, you learned about What Development Promises – Different Peoples, Different Goals. Various individuals can have specific developmental goals.

An economy is best understood when you study its components or sectors. In this Chapter 2 – Sectors of the Indian Economic, you will learn 3 types of economy classifications of economy i.e essential/secondary/tertiary, composed/unorganized, and public/private. To understand this part in a superior manner, attempt to relate the topics to your everyday life. In these notes, you will also get acclimated with a couple of basic concepts such as Gross Domestic Product, Employment, etc. 

(Sectors Of The Indian Economy: Class 10)

Sectors of Economic Activities 

Sector defines an enormous segment of the economy wherein businesses share the same or a related item or service. 

At the point when we produce a decent by extraction and assortment of regular resources, it is known as the essential sector. E.g., Farming, forestry, chasing, fishing, and mining. 

The secondary sector covers activities in which regular products are changed into different forms through ways of manufacturing. It is the subsequent stage after essential. Some manufacturing processes are required here. It is also called the industrial sector. For instance, using cotton fiber from the plant, we spin yarn and weave material. Using sugarcane as crude material, we make Sugar or Gur. 

Tertiary sector involves activities that help in the improvement of the essential and secondary sectors. These activities, without anyone else, don’t create a decent however they are a guide or support for the production process. It is also called the service sector. Model: Teachers, doctors, washermen, barbers, cobblers, lawyers, call centers, software companies and so on. 

(Sectors Of The Indian Economy: Class 10)

Fast revision notes 


  1. Numerous activities are attempted by legitimately using shared resources. 
  2. For instance, the development of cotton. It takes place inside a harvest season. 
  3. At the point when we produce a decent by misusing the shared resources, it is an activity of essential sector. 
  4. This is because it forms the base for every single other item that we subsequently make. 
  5. Since most of the characteristic products we get are from horticulture, dairy, fishing, forestry, this sector is also called farming and related industry. 
  6. The secondary sector covers activities in which regular products are changed into different forms through manufacturing methods that we associate with industrial action. It is the subsequent stage after the essential. 
  7. Secondary sector progressively becomes associated with the various types of industries that surfaced, it is called the industrial sector. 
  8. After essential and secondary, there is a third class of activities that fall under the tertiary industry and is unique in relation to the over two. These are activities that help in the advancement of the essential and the secondary sector. 
  9. Transport, storage, correspondence, banking, exchange are some examples of the tertiary sector. Since these activities produce services instead of goods, the tertiary sector is also called the service sector. 


  1. The various production activities in the essential, secondary and tertiary sectors produce an exceptionally enormous number of goods and services. 
  2. Also, the three sectors have countless individuals working in them to deliver these goods and services. 
  3. There is one safety measure one has to take. Few out of every odd great that is created and sold also needs to be tallied. 
  4. It makes sense just to conclusive goods and services. 
  5. For instance, a rancher who sells wheat to a flour plant for Rs. 8 for every Kg. The factory grinds the grain and sells the flour to a biscuit organization for Rs. 10 for each Kg. 
  6. Middle of the road goods are used up in creating last goods and services. The estimation of conclusive goods that are used in making the previous goods. 
  7. The estimation of definite goods and services created in every sector during a specific year provides the industry’s complete production for that year. 
  8. The sum of production in the three industries gives the nation’s Gross Domestic Product (GDP)
  9. It is the estimation of every last great and services created inside a country during a specific year. Gross domestic product shows how massive the economy is. 


1.From 40 years between 1971-72 and 2011-12, The production in all the three sectors has increased but it has shown a tremendous increase in the tertiary sector. 

  1. As a result, between the year 2011-2012, the tertiary industry has developed as the largest creating sector has risen as India’s largest delivering sector supplanting the essential endeavor. 
  2. There are numerous reasons as to why the tertiary sector is getting so significant in India. 

(I) First, several services such as hospitals, instructive institutions, post and transmit services, and so forth are required in any nation. These can be considered as essential services. In a creating country, the administration has to assume liability for the provision of these services. 

(ii) Second, the advancement of farming and industry leads to the improvement of services such as transport, exchange, storage and so forth, as we have just seen. 

(iii) Third, as pay levels rise, certain sections of individuals start requesting a lot more services like eating out, tourism, shopping, private hospital, private school. 

(iv) Fourth, over the past decade or somewhere in the vicinity, certain new services such as those based on data and correspondence technology have gotten significant and essential. 

  1. A momentous fact about India is that while there has been an adjustment in the share of the three sectors in GDP, a similar shift has not occurred in business. 
  2. The essential sector continues to be the largest manager even at this point. 
  3. The greater part of the nation’s workers are working in the country and are working in the essential sector, fundamentally in farming, delivering just a fourth of the GDP. 
  4. Both the secondary and tertiary sectors produce three-fourth of the total production whereas they utilize less than a large portion of the individuals. 
  5. It means that there are a more significant number of individuals in farming than is necessary. So, regardless of whether you move a couple of individuals out, production won’t be influenced. As such, workers in the horticultural sector are under-utilized. 
  6. The underemployment is covered up in contrast to someone who does not have an occupation and is unmistakably visible as jobless. Consequently, it is also called disguised joblessness. 
  7. We see others of the service sector on the street pushing a truck or selling something where they may spend the entire day however win practically nothing. 
  8. They are accomplishing this work because they don’t have better opportunities

How to Create More Employment? 

  1. We can handle this issue to recognize, to advance, and to find industries, and countless individuals might be utilized. 
  2. A study led by the Planning Commission estimates that about 20 lakh jobs can be done in the instruction sector alone. 
  3. Each state or district has the potential to increase the salary and work for individuals here. 
  4. The study by the Planning Commission says that if tourism as a sector is improved, we can give extra work to more than 5 lakh individuals each year. 
  5. We must understand that some of the suggestions discussed above would set aside an extended effort to execute. 
  6. Perceiving this, the focal government in India made a law enforcing law “Right to work”. 
  7. MGNREGA 2005 
  8. Under MGNREGA 2005, each one of those who can and need work is ensured 100 days of work in a year by the administration. 
  9. On the off chance that the administration fails in its obligation to give volume, it will provide joblessness allowances to the individuals. 

DIVISION OF SECTORS AS Organized AND Unorganized: 

  1. The sorted out sector covers those enterprises or places of work where the terms of business are ordinary, and subsequently, individuals have assured work. 
  2. It is called sorted out because it has some conventional processes. 
  3. The Whole unorganized sector is characterized by small units, which are, to a great extent, outside the administration’s control. 
  4. Jobs here are low-paid and frequently, not ordinary. The business is not secure. 
  5. This sector includes countless individuals who are utilized on their own doing small jobs such as selling on the street or accomplishing fix work. 

Ways to Protect Workers in the Unorganized Sector? 

  1. The sorted out sector offers jobs that are the most sought-after. 
  2. It is also regular to discover many composed sector enterprises in the unorganized sector. 
  3. Since the 1990s, it is likewise familiar to see many workers losing their jobs in the sorted out sector. 
  4. In the country areas, the unorganized sector mostly comprises landless horticulture laborers, small and minor farmers, sharecroppers, and artisans. 
  5. About 80% of provincial households in India are in remote and insignificant rancher classification. 
  6. In the urban areas, the unorganized sector in Urban Areas comprises predominantly of workers in the small-scale industry, casual workers in the construction, exchange, and transport, and so on. Those who function as street vendors, head load workers, pieces of clothing makers, cloth pickers, and so forth. 

(Sectors Of The Indian Economy: Class 10)


1.The legislature own most of the assets and offer a wide range of assistance in Public Sector

  1. Followed by the public sector, now comes private sector, ownership of assets and conveyance of services is in the hands of private individuals or companies. 
  2. Activities in the private sector are primarily focused on the intention to gain leads and profits. 
  3. The motive of the public sector is not just to achieve profits. 
  4. Governments raise money through taxes and different ways to meet expenses on the services delivered by it. 
  5. There are several things required by the society in general however which the private sector won’t give at are.
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