SHORT QUESTIONS AND ANSWER
Question 1: What are the three main sectors of the Indian economy?
Answer:
The three main sectors are the primary sector, the secondary sector, and the tertiary sector.
Question 2: Define the primary sector.
Answer:
The primary sector includes activities related to agriculture, forestry, fishing, mining, and quarrying.
Question 3: What is the significance of the primary sector in India?
Answer:
The primary sector employs a significant portion of the Indian workforce and provides raw materials for industries.
Question 4: Give examples of activities in the secondary sector.
Answer:
Activities in the secondary sector include manufacturing, construction, and electricity generation.
Question 5: Why is the secondary sector important for economic development?
Answer:
The secondary sector adds value to raw materials and creates finished goods, contributing to industrialization and economic growth.
Question 6: What is the role of the tertiary sector?
Answer:
The tertiary sector includes services such as banking, education, healthcare, transportation, and tourism, facilitating economic activities.
Question 7: Why has the tertiary sector gained importance in India?
Answer:
The tertiary sector has grown due to urbanization, increasing income levels, and changing consumer preferences.
Question 8: What is meant by organized and unorganized sectors?
Answer:
The organized sector refers to registered businesses with formal employment contracts and social security benefits, while the unorganized sector consists of informal activities with no formal regulations.
Question 9: Give examples of organized sector activities.
Answer:
Examples include large-scale industries, corporate offices, government institutions, and organized retail chains.
Question 10: What are the characteristics of the unorganized sector?
Answer:
The unorganized sector is characterized by small-scale enterprises, self-employment, low wages, lack of job security, and limited access to social benefits.
Question 11: How does the unorganized sector contribute to the Indian economy?
Answer:
The unorganized sector provides livelihoods for a large number of people, especially in rural areas, and fulfills essential needs such as food and clothing.
Question 12: Explain the concept of disguised unemployment.
Answer:
Disguised unemployment occurs when more people are engaged in a task than necessary, leading to low productivity and underutilization of labor.
Question 13: What are the challenges faced by workers in the unorganized sector?
Answer:
Challenges include low wages, lack of social security, poor working conditions, and vulnerability to economic shocks.
Question 14: How can the government support workers in the unorganized sector?
Answer:
The government can provide skill development programs, access to credit, social security schemes, and better working conditions for workers in the unorganized sector.
Question 15: Why is it essential to address issues related to sectoral employment patterns in India?
Answer:
Addressing sectoral employment patterns is crucial for balanced economic development, poverty reduction, and ensuring social equity and stability in the Indian economy.
LONG QUESTIONS AND ANSWER
Question 1: Describe the importance of Primary sector in the Indian economy.
Answer:
- The Primary Sector is essential for fulfilling the fundamental requirements of the economy, such as food and mineral ores. It serves as a vital source of raw materials, including jute, cotton, and coal extracted from mines, which are utilized by the industrial sector.
- Even as of the year 2000, the Primary Sector remains the largest employer within the economy, primarily due to the insufficient job creation in the Secondary and Tertiary sectors. Within the Primary sector, the agricultural population constitutes a vast consumer market for the Secondary sector, purchasing finished products like clothing, daily necessities, and fertilizers.
Question 2: How can we create more employment in secondary and tertiary sectors in rural India?
Answer:
- Investment in basic agricultural infrastructure like dams and canals for irrigation fosters employment opportunities within the agricultural sector, addressing underemployment issues.
- Government funding towards crop storage and transportation, along with improving rural road infrastructure, facilitates year-round cultivation and sales, benefiting not only farmers but also those in related sectors like transport and trade.
- Provision of credit at reasonable interest rates enables farmers to purchase essential inputs such as seeds, fertilizers, and equipment, thereby stimulating employment growth in rural banking.
- Offering affordable loans to small-scale farmers for enhancing irrigation facilities, such as constructing wells, promotes multiple-crop cultivation, leading to increased employment within the agricultural domain.
- Promoting the establishment of industries and services in semi-rural areas creates job opportunities for local communities. Examples include setting up dal mills, cold storage facilities, and promoting activities like honey collection, fostering employment diversity and economic development.
Question 3: Explain reasons for the rising importance of the tertiary sector in India.
Answer:
- The Tertiary sector experiences increasing importance due to its significant role in catering to rising demands. Development in the Primary and Secondary sectors amplify the need for various services.
- In India, the Tertiary sector has emerged as the largest producer, encompassing essential services like healthcare, education, communication, law enforcement, banking, transportation, and insurance.
- Advancements in agriculture and industry stimulate the growth of complementary services such as transportation, trade, and storage. As incomes rise, there’s a surge in demand for services, evident in activities like dining out, tourism, shopping, education, and professional training.
- Emerging services like Information Technology and outsourcing play pivotal roles in modern trade and industry. Despite the sector’s rapid growth, employment generation hasn’t matched expectations, posing a challenge in optimizing its potential for job creation.
Question 4: How can employment be increased in both rural and urban areas? Explain.
Answer:
- Promote industries like dal mills, cold storage facilities, and honey collection in semi-rural areas to generate employment. Provide affordable loans to small farmers for establishing small-scale industries such as agro-processing units, enhancing agricultural employment.
- Enhance irrigation facilities by building dams and providing canal water, thereby boosting employment in agriculture. Invest in transportation and storage infrastructure to benefit small farmers and create job opportunities in logistics. Focus on tourism development to employ more youth and stimulate economic growth.
Question 5: Explain any three demerits of private sector.
Answer:
- Private sector’s profit-oriented approach impedes its ability to offer certain services at affordable rates. Infrastructure projects like roads, bridges, and railways demand massive investments surpassing private sector capabilities, resulting in high user charges.
- Private sector encounters difficulties in fee collection from numerous users of public services. Private sector activities often overlook regional balanced development, income equality, and the growth of vital industries. Government prioritizes service delivery in public facilities, ensuring fair pricing devoid of profit motives, unlike the private sector.
Question 6: Describe any five conditions or aspects that you would consider before accepting a job?
Answer:
- Apart from income, job seekers consider factors like family facilities, working environment, and learning opportunities. Some jobs may offer lower pay but provide regular employment, enhancing a sense of security. Conversely, other roles may offer high pay but lack job security and work-life balance.
- Employment terms adhere to government regulations. Enterprises offer additional benefits such as paid leave, provident fund, and gratuity. Employers provide medical benefits and ensure a safe working environment, which may encourage more women to pursue diverse job opportunities.
Question 7: ‘There has been a big change in the three sectors of economic activities, but a similar shift has not taken place in the share of employment.’ Explain the above statement on the basis of facts.
Answer:
- The structure of employment has not paralleled changes in GDP distribution across sectors. Agriculture, within the Primary sector, continues to be the largest employer, even in 2000. Insufficient job creation in the Secondary and Tertiary sectors contributes to the Primary sector’s dominance in employment.
- Despite employing over half the workforce, the Primary sector contributes only a quarter to GDP. In contrast, the Secondary and Tertiary sectors, with fewer employees, collectively contribute three-fourths to GDP. Over the past thirty years, job creation in the Secondary and Tertiary sectors has been inadequate despite substantial output growth.
- Consequently, over half of India’s workforce is engaged in the Primary sector, primarily agriculture, resulting in significant underemployment due to overcrowding. There is surplus labor in agriculture, with more workers than necessary for production. Removing a substantial portion of the workforce from agriculture would have minimal impact on sectoral production.
Question 8: Define tertiary sector. Describe about the different kinds of people employed in this sector in India.
Answer:
- The Tertiary sector encompasses activities that provide services rather than goods, supporting the Primary and Secondary sectors. Examples of Tertiary sector activities include administration, police, transportation, healthcare, education, banking, storage, trade, and communication.
- This sector is also referred to as the Service Sector. Highly skilled and educated individuals, such as doctors, lawyers, and accountants, provide specialized services in this sector, often earning substantial salaries.
- Additionally, a large number of workers in services like small shops, repair, and transportation struggle to make ends meet due to limited alternative employment opportunities. Therefore, only a portion of the Tertiary sector is experiencing significant growth and importance.
Question 9: State any five features each of public sector and private sector.
Answer:
Public Sector:
- Government ownership prevails over most assets. Services are predominantly provided by the government. The primary motive of the public sector is the welfare of the masses, guided by national interest.
- Employees typically experience job security, discipline, and regular work. Government funds are primarily sourced from taxes and other means. Examples include railways, post offices, and infrastructure projects like roads, bridges, and dams.
Private Sector:
- Ownership of assets lies with private individuals or companies. Services are provided by private entities. Profit-making is the primary motivation in the private sector, prioritizing owner interests over public welfare.
- Employee job security is lower, and employer decisions take precedence. Private sector services often come with high charges. Examples include Tata Iron and Steel Co. (TISCO), Reliance Industries, and various other private enterprises.
Question 10: Explain with suitable examples how public sector contributes to the economic development of the nation.
Answer:
- The government-owned public sector plays a crucial role in economic development. It promotes rapid economic growth by investing in infrastructure expansion. Public sector initiatives include constructing roads, bridges, railways, and irrigation systems through dams, requiring significant investment.
- Government responsibilities encompass providing essential services like education, healthcare, housing, and safe drinking water. Supportive activities include supplying electricity to small-scale industries at affordable rates and distributing food to the impoverished.
- The Public sector also fosters the growth of small, medium, and cottage industries. It ensures the availability of goods and services at reasonable prices while contributing to community development through infrastructure expansion.
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