Sectors of the Indian Economy

• Introduction to Economic Activities
  • Primary activities (using natural resources)
  • Secondary activities (manufacturing/processing)
  • Tertiary activities (support services)
• Comparing the Three Sectors
  • Calculating Gross Domestic Product (GDP)
    • Total value of final goods and services
    • Produced within a country during a year
    • Measured by central government ministry
  • Historical Shift in Sectors
    • Initial dominance of primary sector
    • Shift to secondary sector (Industrialisation)
    • Current dominance of tertiary sector in GDP
  • Importance of the Tertiary Sector
    • Basic services (hospitals, education, transport)
    • Rise of information technology (IT)
• Where are most people employed?
  • Primary sector employs the maximum workforce
  • Discrepancy: High employment, low share in GDP
  • Concept of Underemployment / Disguised Unemployment
    • More people working than necessary
    • Marginal productivity is zero
  • How to create more employment?
    • Promote irrigation and agriculture
    • Invest in local transport and storage
    • Promote small-scale industries and tourism
    • Improve education and health services
    • Implement government schemes like MGNREGA 2005 (Right to Work)
• Division of Sectors: Organised vs Unorganised
  • Organised Sector
    • Registered by government
    • Job security, fixed working hours
    • Paid leaves, provident fund, medical benefits
  • Unorganised Sector
    • Outside government control
    • Low-paid, irregular jobs, no benefits
    • Vulnerable to exploitation
    • Need for protection of workers
• Sectors in terms of Ownership: Public vs Private
  • Public Sector
    • Owned and controlled by the government
    • Main aim: Public welfare and social security
    • Examples: Railways, Post Office
  • Private Sector
    • Owned and controlled by individuals or private companies
    • Main aim: Earning high profits
    • Examples: TISCO, Reliance