SECTORS OF ECONOMIC ACTIVITIES
Primary sector
When we produce goods by exploiting natural resources, it is known as the primary sector. It is because it forms the base for all other products that we subsequently use. Eg: Farming, forestry, hunting, fishing and mining. This sector is also called agriculture and related sectors.
Secondary sector
The secondary sector covers activities in which natural products are changed
into other forms through ways of manufacturing. It is the next step after
primary sector.
Some manufacturing processes are required here.
It is also called the industrial sector. This could be in a factory or workshop at home.
For example, using cotton fibre from the plant, we spin yarn and weave cloth.
Using sugarcane as raw material, we make Sugar or Gur.
Tertiary sector
It includes activities that help in the development of the primary and secondary sectors.
These activities, by themselves, do not produce a good but they are an aid or support for the production process. It is also called the service sector. Example: Teachers, doctors, washermen, barbers, cobblers, lawyers, call centres, software companies .
In recent times certain new services based on information technology like internet cafe ,ATM Booths, call centres etc.have become very important.
COMPARING THE THREE SECTORS
The value of final goods and services produced in each sector during a particular year provides the
Total Production of the sector for that year.
The sum of production in the three sectors (primary+secondary+tertiary) gives the Gross Domestic Product (GDP) of a country .
GDP is the value of all final goods and services produced within a country during a particular year. It shows how big the economy is. In India, the task of measuring GDP is undertaken by the central government ministry.
GROWTH AND DEVELOPMENT OF DIFFERENT SECTORS IN INDIA
Closely observe the given graphs. The first graph shows the rupee-wise turnover of various sectors in 1973 and 2003.
The second graph shows the share of three sectors in the GDP during these 20 years.The second graph shows that share of agriculture decreased substantially and that of industry remained static and share of services grew. Particularly the growth of share of service sector was phenomenal from 35% to 55%.
The last graph shows the share in providing employment.
Service sector employees have many different kinds of workers. They are-
Skilled and unskilled workers.
RISING IMPORTANCE OF TERTIARY SECTOR
Why is the tertiary sector becoming so important in India? Some reasons are-
It provides with the basic services like hospitals, educational institutions, postal services, police stations, village administrative offices, municipal corporations,transport,banks,
insurance companies etc.
the development of agriculture and industry leads to the development of services such as transport , storage etc.
As the income level rises certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals etc.
Certain new services based on information technology and communication have become important and essential.
UNDEREMPLOYMENT
It means there are more people engaged in agriculture then is required. If we remove those few people out production will not be affected. Thus these few workers are under employed. It is also called disguised unemployment.This underemployment can happen in many other sectors for example there are thousands of casual workers in the service sector in urban areas who search for daily employment like painters, plumbers, repair persons and others doing odd jobs.They spend the whole day but earn very little.
Creating Employment
1.Employment can be given to people by identifying, promoting and locating industries and services
in semi-rural areas.
2. Every state or region has the potential for increasing the income and employment for people in that area.
3. It can be done by tourism, or regional craft industry, or new services like IT
4.Goverment investments on transportation and opening of cold storages can provide many
productive employment.
5. A study conducted by the Planning Commission (known as NITI Aayog) estimates that nearly 20 lakh jobs can be created in the education sector alone.
6. Similarly the health sector can be improved by creating employment for doctors,nurses and healthcare workers.
7.The central government in India made a law implementing the Right to Work in about 625 districts of India, which is called Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)2005
Under MGNREGA 2005, all those who are able to, and are in need of work in rural areas are guaranteed 100 days of employment in a year by the government. If the government fails in its duty to provide employment, it will give unemployment allowances to the people.
One third seats are reserved for women
Division of Sectors-
As Organised and Unorganised Organised Sector
ORGANISED SECTOR
Formal sector , controlled by the government
Assured employment
Follow rules and regulations like factory act, minimum wages act etc.
Must be registered
Job security
•Work only for fixed hours
Get paid leaves, payment during holidays, PF, gratuity etc
Get medical benefits
Get retirement benefits(pension).
UNORGANISED SECTOR
Small and scattered
No government control
Low paid and irregular jobs
Seasonal employment
No job security
No extra benefits given
Bonus , pensions are not given
No paid holidays
PROTECTING WORKERS OF UNORGANISED SECTOR
• In the 1990s many organized workers lost jobs.
• Organised shifted to unorganised to evade taxes with low salary.
• 80% rural households are small and marginal farmers.
• Casual workers in construction and trade
• Streets vendors,rag pickers
• Majority from SC/ST/OBC in unorganised sector.
• Providing social security.
SECTORS BY OWNERSHIP
• In the public sector, the government owns most of the assets and provides all the services.
Railways or post offices is an example of the public sector. The purpose of the public sector is not just to earn profits. Its main aim is public welfare.
• In the private sector, ownership of assets and delivery of services is in the hands of private individuals or companies. Companies like Tata Iron and Steel Company Limited (TISCO) or
Reliance Industries Limited (RIL) are privately owned companies. Activities in the private sector are guided by the motive to earn profits
.Responsibilities of Government• There are a large number of activities which are the primary responsibility of the
government. Government raises money through taxes and other ways to meet expenses on the services rendered by it.
• Governments have to undertake heavy spending such as the construction of roads, bridges, railways, harbours, generating electricity, providing irrigation through dams etc. Also, it has to ensure that these facilities are available for everyone.
• Running proper schools and providing quality education, health and education facilities for
all are some of the duties of the government.
• Government also needs to pay attention to aspects of human development such as
availability of safe drinking water, housing facilities for the poor and food and nutrition, taking care of the poorest and most ignored regions of the country.
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