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UNIT 2, , SECTORS OF THE INDIAN ECONOMY, ECONIMIC ACTIVITIES, , © People are engaged in various economic activities, © Some of them producing goods, © Some others are producing services., © To understand them, they are classified as below, o ON THE BASIS OF THE NATURE OF THE ACTIVITIES., © ON THE BASIS OF TERMS OF EMPLOYMENT, o ON THE BASIS OF OWNERSHIP, , ON THE BASIS OF THE NATURE OF THE ACTIVITIES, , , , , , PRIMARY SECTOR SECONDARY TERTIARY SECTOR, SECTOR, , © Depend mainly, but not ® Natural products are [© Activities that help in the, entirely on natural factors changed into other development of the, like rainfall, sunshine and forms through ways of | primary and secondary, climate manufacturing sectors, , it forms the base for all * Next step after © Do not produce a good, other products primary © Transport, storage,, , © Agriculture, dairy, fishing, | ¢ Industrial sector communication, banking,, forestry, minerals and ores trade, , * Agriculture and related * Service sector, sector, , , , , , , , , , , , COMPARING THE THREE SECTORS,, , How do we count the total production?, , + The value of goods and services in the three sectors are calculated, and then added up, + Only value of the final goods and services is to be included, * Gross domestic product (GDP), , + Mvavalugg Go) Wrahuords.an byer anna gov NeARIR AeA deine 9, Historical Change in Sectors, , + In Developed countries 2/4, + Primary sector was the most important sector for long time, + Because new methods of manufacturing, Secondary sector gradually became the, most important in total production and employment, , , , * Inthe past 100 years, The service sector has become the most important sector, , + InIndia, , In Terms of Production, , + Tertiary sector has emerged as the largest producing sector in India replacing the, primary sector over the years. Unlike in developed countries, the shift surpassed, directly to Tertiary sector, , + Reasons, Ls, , , , , , institutions, post and telegraph services, police stations, courts, village, administrative offices, municipal corporations, defence, transport, banks,, insurance companies, etc., 2. The development of agriculture and industry leads to the development of, services such as transport, trade, storage, etc, 3. As income levels rise- demanding many more services like eating out, tourism,, shopping, private hospitals, private schools, professional training, etc., 4, New services such as those based on information and communication, technology have become important and essential, + Not all the service sector is growing equally well, , , , , , , , , , , , Shift has not taken place in employment, * As aresult, more than half of the workers in the country are working in the primary, sector, + Not enough jobs were created in the secondary and tertiary sectors, + Underemployment, f you move a few people out, production will not be affected, led as Disguised Unemployment, + Happen in all the three sectors but mainly in Primary Sector, + How to Create More Employme:, + Development of irrigation, + Development of rural infrastructure, + Provide cheap agricultural credit, + Decentralisation of industries, + Development of education and health infrastructure, + Area wise planning, + Right to work- Mahatma Gandhi National Rural Employment Guarantee Act 2005, (MGNREGA 2005)- rural areas - guaranteed 100 days of employment in a year, , , , , , , , , , ON THE BASIS OF TERMS OF EMPLOYMENT, , , , , , ORGANISED SECTOR UNORGANISED SECTOR, + Terms of employment are regular hence + Small and scattered units which, people have assured work are outside the control of the, , + Registered by the government and have to government, follow its rules and regulations + Low-paid and often not regular, , + Ithas some formal processes and procedures | + Employment is not secure, + Employees enjoy several benefits like security | + No such benefits like organised, of employment, fixed working hours, paid sector employees, overtime, paid leave, payment during holidays, | + A lot also depends on the whims, provident fund, gratuity medical benefits, of the employer, working environment, pensions, etc.,, , , , , , , , , , , , , , How to Protect Workers in the Unorganised Sector? 3/4, , + Exploited and not paid a fair wage, + Need for more work, + Need for protection and support of the workers, + Rural areas, + Landless agricultural labourers, small and marginal farmers,, artisans, + Adequate facility for timely delivery of seeds, agricultural inputs, credit, storage, facilities and marketing outlets, + Urban areas, * Workers in small-scale industry, casual workers, street vendors, head load workers,, garment makers, rag pickers, + Government's support, + Majority of unorganised sector workers from scheduled castes, tribes and backward, communities, + They face Social discrimination also, + Hence both economic and social development are necessary, , , , harecroppers and