Chapter 2: Sectors of the Indian Economy

Ans:

Ans: No, I don’t agree with this statement. The tertiary sector has contributed immensely in the last two decades in the Indian economy. The information technology field has grown, and the GDP share of the tertiary sector has grown from 40% in 1973 to 50% in 2003.

Ans: The service sector in India employs:

• The people who are there in this service may directly help in the production of goods. For example, people in transportation, storage, communication, finance etc.

• The people involved in these services are not directly helping in the production of goods. For example, teachers, doctors, barbers, cobblers, lawyers, etc. They are called ancillary workers which means that those who are giving their services to the primary sector providers.

Ans: Yes, I agree workers are exploited in the unorganised sector:

• Having no fixed number of working hours. The workers work 10-12 hours without paid overtime.

• They do not get extra allowances apart from the daily wages.

• Government rules and regulations for the protection of labourers are not followed.

• No job security.

• Jobs are low paid and the workers in this sector are illiterate, ignorant, and unorganised.

Ans: On the basis of employment conditions, the activities in the economy are classified into organised and unorganised sectors.

• Organised Sector: This sector covers those enterprises that are registered by the government and have to follow rules and regulations. Example: Reliance, GAIL etc.

• Unorganised Sector: It consists of small and scattered units which are not in control of the government. They do not follow any rules and regulations made by the government. Example: Casual workers in construction, shops etc. There is no job security.

Ans: Employment conditions in the organised and unorganised sectors are quite different.

• The organised sector consists of companies registered under government, so it offers job security, paid holidays, pension, health and other benefits, fixed working hours and extra pay for overtime work.

• Unorganised sector is a host of opportunities, there is no job security as well.

• No paid holidays or pensions or retirement, no benefits of provident fund or health insurance, no fixed work timings and no guarantee of a hygienic work environment.

Ans: The objectives of implementing NREGA 2005 are listed below:

a. To increase income and employment of people.

b. Every state will be able to develop tourism, regional craft, IT etc.

c. Central government made a law to implement, right to work in 200 districts.

d. NREGA aims to provide 100 days of employment.

Ans:

Public Sector: 

• Public welfare is the main objective.

• It is managed as well as controlled by the government.

• It provides education, health, food, and security to the people like Indian railways, Post office, etc.

Private Sector:

• Maximum profit in terms of earning is the main objective.

• It is managed and controlled by an individual or group of individuals.

• It provides consumer goods to the people; Reliance, TISCO.

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Ans:

• Public sector activities, that is, provision of water, electricity, and modes of transport. The government has taken up this because water and power are needed by everyone.

• If we leave the work of providing electricity and water to the private companies, then the latter may exploit this opportunity.

• They may sell these at higher rates which the masses cannot afford.

• To make sure that all the basic amenities such as water and electricity are available for all, the government supplies all these at low and affordable rates.