Sectors on the basis of Working conditions

Sectors on the basis of Working conditions
Organised
1. The organised sector covers those places of work where the terms of
employment are regular and therefore, people have assured work
2. Registered under the government and works under its supervision.
3. Follow rules and regulations and laws such as the factories act, minimum
wages act.
4. Working hours are fixed.
5. Workers get paid leaves, paid for overtime pensions on retirement.
Unorganised
1. The unorganized sector is characterized by small and scattered units.

Employment is not secure.
2. Largely outside the control of the government.
3. Rules and regulations are not followed.
4. Working hours are not fixed.
5. No paid leaves, no provisions of overtime, paid leaves etc.
--> How to protect workers in unorganised sector?
*Rural area (Landless agriculture labourers, small and marginal farmers etc)
Protection through:Timely delivery of seeds, agricultural inputs, credits,
storage facility
*Urban area (workers in small scale industries, casual workers etc)

Protection through:Procuring of raw material and marketing output, economic
and social protection.
Ques) Which one of the following is an example of organized sector
activities?
CBSE Board Paper 2024-Set [32/1/1]
a. A farmer irrigating his field.
b. A handloom weaver working in her house.
c. A headload worker carrying cement.
d. A teacher taking classes in a government school.

Sectors of Indian Economy
Public sector
1. The government owns most of the assets and provides all the services
2. Eg. Railways
3. Service Motive
Private sector
1. Ownership of assets and delivery of services is in the hands of the private
individuals or companies.
2. Eg. TISCO
3. Profit motive
Importance of Public Sector?
1. Certain important services cannot be provided by private sector at a

reasonable cost.
2. Certain activities require government support (cost bearing) E.g. PDS
3. Responsibility of the government to spend on some services E.g.
Health and education.
Key words
Primary Sector: When we produce goods by utilizing natural resources, it is

an activity of the primary sector, such as agriculture, dairy farming, fishing,
forestry.
Secondary Sector: The secondary sector includes activities in which

natural products are changed into other useful forms through machines.
Tertiary sector: The sector in which services are produced rather than
goods is called Tertiary sector. Tertiary sector helps in the development of
Primary and Secondary sectors.
Intermediate Goods: Intermediate goods are those goods which are used
in the as a raw material or intermediate product in the production process of
the final goods. Example: Cotton is an intermediate good while producing the
Cotton shirt.
GDP: GDP is the calculation of total production in a country within a time

period, normally a year. It is. the calculation of values of all final goods and
services within a year.
Unemployment: Unemployment is also known as disguised unemployment.

It is a type of unemployment which is hidden in nature where a person is
seem to be working but he or she is not working upto his or her full potential.
Disguised Unemployment: A situation in which an individual is seen to be

working but in reality he/she is working much below his potential. For Eg: A
family of 5 members owned 2 hectares of land and all of them worked on the
same land and produced some crops. But if you move out two of them,
production will not be affected. This situation is known as disguised
unemployment.
MGNREGA: The Mahatma Gandhi National Rural Employment Guarantee

Act, 2005 (MGNREGA) was a law implementing the Right to work. The
objective of the act is to provide at least 100 days of guaranteed wage
employment in a financial year to every rural household whose is willing and
able to work.
Private Sector: Private sector is the sector that is owned by a private

individual or a group of people and whose primary motive is to earn profit.
Public Sector: In the public sector, the government is the owner of the
assets and provides all the goods and services to the people. The aim of the
public sector is to provide basic facilities to the people at the minimum cost.
Organised Sector: Organised sector covers those enterprises or places of
work which is under government supervision, where the terms of
employment are regular and therefore, people have assured work.
Unorganized Sector: Unorganized sector is a sector which has small and

scattered units largely outside the control of the government.
NITI Aayog: NITI Aayog is a government body in India that replaced the
Planning Commission. It helps the country make long-term plans for
development and works to improve the lives of people, especially by
supporting states in solving local problems. One of the goals of NITI Aayog
is to create jobs.
MUST KNOW QUESTIONS
Ques) On the basis of production, what are the different sectors of the
economy? How are Interdependent, explain with an example.
On the basis of production, sectors of the economy are divided into three
main sectors.
Primary sector is the sector involving the extraction and harvesting of natural
resources. It includes activities such as agriculture, mining, forestry, and
fishing and is also known as the agricultural sector.
Secondary sector involves processing and manufacturing of raw materials

and transforms them into finished products. It includes industries such as
construction, automotive manufacturing, and textile production and is also
known as the industry sector.
Tertiary sector provides services and also supports the other two sectors by
offering services to them that facilitate their production and consumption. It
includes transportation, retail, entertainment, healthcare, finance, and
education and is also known as the service sector.
The primary sector provides raw materials, the secondary sector turns them
into products, and the tertiary sector handles their distribution and services.
Each sector relies on the others to complete the economic process, shows
the interconnected nature of economic activities
For example, farmers grow pulses and sugarcane (primary sector), which are
processed into dal and (secondary sector), and then sold through shops and
transport (tertiary sector).
Ques) "Primary sector was the most important sector of economic activity
at initial stages of development." Evaluate the statement.
First, primary sectors predominantly contributed to GDP and held most of the
employment. Then when agricultural activities increased, there was need for
industrialisation and gradually industrial sectors dominated the economy.
Much of the workers shifted to industrial sector, but agriculture productivity

did not hamper as industrial sector produced farm equipments, fertilisers etc
that increased the productivity.
The service sector has now become the most important sector in terms of
total production and employment generation.
So, it is seen that the economic structure had been shifting from primary to
secondary and finally to tertiary sector in developed countries.
Ques) Why is the tertiary sector becoming more important in India? Explain.
Ans) Several services such as hospitals, educational institutions, post and

telegraph services, police stations, courts, village administrative offices,
municipal corporations, defense, transport, banks, insurance companies, etc.
which are considered as basic services are ensured by the government.
The more the development of the primary and secondary sectors, the more
would be the demand for such services.
Rise in income has led to a rise in the living standards of people, which
automatically makes them demand services such as restaurants, hotels,
gyms, shopping centres, private schools, colleges and hospitals.
New services based on information and communication technology have

become important and essential in a global world with technological
advancement.
Ques) Underemployment continues to be rampant in rural areas. Suggest

and explain any three ways through which employment for rural people can
be generated.
Ans) People can be employed in projects like construction of

dam/canal/roads in the village.
Government invests and employ people in providing transportation and

storage services.
People can be employed in services like banking, trade, etc.

Government can identify, promote industries and services in semi-rural areas
to enhance employment.
Government can open centers to give them training and financial assistance
to help them become self-employed.
Ques) How far is it correct to say that several services which cannot be
provided by private sector can be provided by the public sector? Explain.
Ans) Only the government can invest large sums of money on projects with
a long gestation period such as the railways.
Public sector provide electricity at a lower cost rate to protect and encourage
the small scale industries, e.g. NTPC. Private sector cannot provide electricity
at reasonable rate.
Only the public sector provides quality health services at economical rates,
as it works for the welfare of the people, e.g. AIIMS.
Ques) How is Public sector different from Private Sector?
Ans) Public Sector
a. The main aim of this sector is public welfare.
b. It is controlled and managed by the government.
c. e.g. the Indian Railways, the Post Office and the BSNL.
Private Sector
a. The main aim of this sector is to earn maximum profit.
b. It is controlled and managed by an individual or a group of individuals.
c. e.g. the Reliance, TISCO.

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Sectors on the basis of Working conditions

1. The unorganized sector is characterized by small and scattered units.

--> How to protect workers in unorganised sector?

*Urban area (workers in small scale industries, casual workers etc)

CBSE Board Paper 2024-Set [32/1/1]

a. A farmer irrigating his field.

b. A handloom weaver working in her house.

c. A headload worker carrying cement.

d. A teacher taking classes in a government school.

Importance of Public Sector?

1. Certain important services cannot be provided by private sector at a

Primary Sector: When we produce goods by utilizing natural resources, it is

Secondary Sector: The secondary sector includes activities in which

GDP: GDP is the calculation of total production in a country within a time

Unemployment: Unemployment is also known as disguised unemployment.

Disguised Unemployment: A situation in which an individual is seen to be

MGNREGA: The Mahatma Gandhi National Rural Employment Guarantee

Private Sector: Private sector is the sector that is owned by a private

Unorganized Sector: Unorganized sector is a sector which has small and

MUST KNOW QUESTIONS

Secondary sector involves processing and manufacturing of raw materials

Much of the workers shifted to industrial sector, but agriculture productivity

Ans) Several services such as hospitals, educational institutions, post and

New services based on information and communication technology have

Ques) Underemployment continues to be rampant in rural areas. Suggest

Ans) People can be employed in projects like construction of

Government invests and employ people in providing transportation and

People can be employed in services like banking, trade, etc.

Ques) How is Public sector different from Private Sector?

Ans) Public Sector

a. The main aim of this sector is public welfare.

b. It is controlled and managed by the government.

a. The main aim of this sector is to earn maximum profit.

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

c. e.g. the Reliance, TISCO.

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