CBSE Notes Class 10 Economics Chapter 2 – Sectors of the Indian Economy

📚 Class 10 Economics – Chapter 2

🌐 Sectors of the Indian Economy

1) 🧭 Sectors of Economic Activities

  • Primary Sector (प्राथमिक) → Using natural resources directly.
    Farming, fishing, forestry, mining, animal rearing.

  • Secondary Sector (द्वितीयक / Industrial) → Turning raw materials into finished goods (manufacturing).
    Cotton → yarn → cloth; sugarcane → sugar/gur.

  • Tertiary Sector (तृतीयक / Services) → Services that support primary & secondary.
    Teachers, doctors, transport, banking, IT, call centres, software, lawyers, barbers, couriers.


2) 📊 Comparing the 3 Sectors (GDP)

  • GDP (सकल घरेलू उत्पाद) = Value of all final goods & services produced within a country in a year.

  • Sectoral GDP = Value of final output from each sector in that year.

  • India (2013–14): Tertiary became the largest producing sector.

🧠 Why the Tertiary Sector grew fast?

  • Basic services needed for all: hospitals, schools, post & telegraph, police, courts, administration, defence, transport, banks, insurance.

  • Growth of agriculture & industry → higher demand for transport, storage, trade.

  • Higher incomes → more demand for restaurants, tourism, shopping, private education/health, professional training.

  • ICT boom → new services (software, BPO, fintech, e-commerce).


3) 👷‍♂️ Where are Most People Employed?

  • Primary sector employs more than half (mainly agriculture) but contributes only ~¼ of GDPunderemployment.

  • Secondary + Tertiary employ less than half the workforce but produce ~⅘ of outputhigher productivity.


4) 🧩 How to Create More Employment?

  • Identify & grow local strengths in semi-rural areas:

    • Tourism circuits, regional crafts/handloom, food processing, cold storage, warehousing.

    • Services & IT hubs, rural BPOs, digital public services.

  • Education push: Planning Commission/NITI Aayog study—~20 lakh jobs possible in education alone (teachers, staff, infra).

  • Rural infrastructure: roads, irrigation, markets, electrification, internet → boosts private jobs.

🏛 MGNREGA 2005 (Right to Work)

  • Applicable in ~625 districts (rolled out nationwide).

  • Guarantee: up to 100 days of wage employment per year to any willing adult in rural households.

  • If work not provided, govt. must pay unemployment allowance.

  • Typical works: water conservation, pond desilting, land development, rural roads, check dams—creating durable assets.


📝 Quick Keywords (1-Markers)

  • Primary/Secondary/Tertiary – definitions + examples

  • GDP – value of final goods & services in a year

  • Per capita income – average income = total income ÷ population

  • Public facilities – health, education, transport, water, sanitation

  • Underemployment – more workers than needed, low productivity

  • MGNREGA – 100 days, unemployment allowance, rural assets


Exam Tips

  • Use examples for each sector.

  • Quote 2013–14: Tertiary largest → give reasons.

  • Contrast employment share vs GDP share to explain underemployment.

  • Remember MGNREGA features (100 days, allowance, rural focus).


Division of Sectors (विभाजन)


🏢 Organised Sector (संगठित क्षेत्र)

✅ Features:

  • Fixed & regular employment terms (निश्चित नौकरी की शर्तें)

  • Registered with the government, follow laws (Factories Act, Minimum Wages Act, etc.)

  • Regular working hours + Overtime payment

  • Security of job (नौकरी की सुरक्षा)

  • Benefits: Paid leave, provident fund, gratuity, medical facilities, pension after retirement

  • Examples: Government employees, registered factory workers, Anganwadi workers, Village health workers


🛠️ Unorganised Sector (असंगठित क्षेत्र)

❌ Features:

  • Small & scattered units, not registered with govt.

  • Laws exist but not followed properly

  • Jobs = low-paid, irregular (कम वेतन, अस्थिर नौकरी)

  • No job security, can be removed anytime

  • No overtime, paid leave, holidays, medical facilities

  • No pension after retirement

  • Examples: Shopkeeping, Farming, Domestic work, Labour, Rickshaw pulling


🛡️ How to Protect Workers in Unorganised Sector? (कैसे सुरक्षा करें?)

  • Fix minimum wage & working hours

  • Provide cheap loans to self-employed workers

  • Provide affordable education, healthcare & food facilities

  • Make laws for overtime, paid leave, sick leave, etc.


🏛️ Sectors in Terms of Ownership (स्वामित्व के आधार पर)

🔹 Public Sector (सार्वजनिक क्षेत्र)

  • Owned & controlled by the government

  • Purpose = Public welfare (जनहित), not profit

  • Examples: Railways, Post office

🔸 Private Sector (निजी क्षेत्र)

  • Owned by individuals/companies

  • Purpose = Profit making (लाभ कमाना)

  • Examples: Tata Steel, Reliance


🏗️ Responsibilities of Government (सरकार की जिम्मेदारियाँ)

  • Collect money via taxes for public services

  • Heavy spending on roads, railways, dams, electricity, irrigation

  • Support private sector through subsidies & policies

  • Buy food grains (like wheat & rice) at fair price → Sell cheaper to consumers (ration shops)

  • Provide education, health facilities, drinking water, housing for poor

  • Focus on human development (nutrition, healthcare, weakest regions)


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