Sectors of the Indian Economy Class 10 Notes and NCERT Solutions

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Sectors of the Indian Economy Class 10 Notes

Studying an economy’s sectors or subsystems will help you better understand it. Therefore, you will learn three types of classifications of the economy, including primary/secondary/tertiary, organized/unorganized, and public/private, in CBSE Notes Class 10 Economics. Try to make connections between the issues in this chapter and your everyday life to better understand it. You will also become familiar with a few basic terms in these notes, such as gross domestic product, employment, etc. Look over these notes to gain a general idea of everything covered in the chapter. To review for exams, you may also get CBSE Notes Class 10. Class 10 economics is a scoring subject if students put in the right amount of effort and prepare for it well enough. In this blog, we shall discuss the sectors of Indian Economy class 10 notes in length. It is an important chapter of CBSE Social Science class 10 syllabus. We dwell on it in a précised manner to serve as an easy reference or note for students. Read on! 

3 Sectors Of Economy 

  • Primary Sector: Activities under the primary sector are defined as those that ensure goods productivity by the exploitation of natural resources.
  • Secondary Sector: Activities under the secondary sector involve those in which natural goods are changed into manufactured products. It is popularly known as the industrial sector.
  • Tertiary Sector: Activities under the tertiary sector include those that support the development of the primary and secondary sectors. It does not involve the production of goods but is an aid to the produced goods.

Must Read: How to Study in Class 10

Comparing the 3 Sectors of the Indian Economy

In 2013-14, the tertiary sector surpassed the primary sector as India’s largest producing sector. The tertiary sector has grown in importance in India for the following reasons:

  1. Hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transportation, banks, insurance firms, and so on are regarded as essential services for all people.
  2. The growth of agriculture and industry leads to the growth of services such as transportation, commerce, storage, and so on.
  3. People’s incomes grow, and they begin to demand additional amenities such as dining out, tourism, shopping, private hospitals, private schools, professional training, and so on.
  4. Certain new services based on information and communication technology have grown significant and necessary during the last decade.

The tertiary industry replaced the primary sector as India’s largest producing sector in 2013–2014. The following are some of the reasons why India’s tertiary sector has grown in importance:

  • Services including hospitals, schools, post offices and telegraphs, police stations, courts, village administrative offices, municipal corporations, transportation, defence, and banking are regarded as basic services and are required for everyone.
  • Services like transportation, trading, storage, and other industries grow as a result of the expansion of agriculture and industry.
  • People begin to expect additional services as their money rises, including dining out, travel, shopping, private hospitals, private schools, professional training, etc.
  • Over the past ten years, a few brand-new information and communication technology-based services have grown in significance and necessity.

What is GDP?

According to sectors of the Indian economy class 10 notes, GDP or Gross Domestic Product is the value of final goods and services produced in a country during a particular year. In simple terms, the value of final goods and services produced in each sector during a particular year provides the sector’s total production for that year. And the sum of production in three sectors gives the Gross Domestic Product—GDP of the country.

Where are Most People Employed?

Primary Sector More than half of Indian workers are employed in the primary sector, primarily in agriculture. It accounts for only a quarter of the GDP of the nation.
Secondary and Tertiary SectorWhen compared to the primary sector, these sectors employ fewer than half as many people as in the primary sector but produce four-fifths of the product that adds up in the GDP of the country. 


Sectors of Indian economy class 10 notes talk about underemployment. A situation in which although people are employed, they work less than what is in their potential is known as underemployment. This kind of underemployment is hidden in contrast to someone who does not have a job. Hence, it is also called disguised unemployment. It causes problems on the road to development. Example – Too many people are employed in agriculture than required.

Mahatma Gandhi National Rural Employment Guarantee Act 2005, (MNREGA 2005):

  • Under NREGA 2005, all those who are able to, and are in need of, work 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.

Organized Sector vs Unorganized Sector 

Organized Sector Unorganized sector 
It is a sector in which the job terms are set and consistent, and the employees are guaranteed work.The unorganized sector is distinguished by tiny and dispersed units that operate primarily outside of government oversight.
They are registered with the government and must obey the norms and restrictions outlined in different laws such as the Factories Act, Minimum Wage Act, Payment of Gratuity Act, Shops and Establishments Act, and so on.Rules and regulations exist, but they are not observed since they are not registered with the government.
The employment is consistent and has set working hours. If employees work additional hours, the company compensates them for the extra hours worked.Jobs are generally low-paying and irregular.
Workers benefit from job security.Employment is not guaranteed. People might be asked to leave for no apparent reason.
Employees in the organized sector get a variety of additional benefits from their employers, including paid leave, holiday pay, a provident fund, a gratuity, and so on.There is no provision for overtime, paid leave, holidays, or sick leave, among other things.
People are entitled to medical care. The factory manager is responsible for providing amenities such as drinking water and a safe working environment. When they retire, these employees will also receive pensions.In the unorganized sector, there are no such amenities.
Government employees, registered industrial workers, Anganwadi workers, village health workers, and others are examples of organized sectors.Shopkeeping, farming, domestic employment, labouring, rickshaw pulling, and other unorganized industries are examples.

Public Sector Vs Private Sectors

Public sector Private sector 
The government controls the majority of the assets and provides all services in the public sector.Ownership of assets and delivery of services is in the hands of private people or corporations in the private sector.
The public sector includes services such as railways and post offices.Privately held enterprises include Tata Iron and Steel Company Limited (TISCO) and Reliance Industries Limited (RIL).
The goal of the public sector isn’t only to make money. Its primary goal is public welfare.Profit is the driving force behind private-sector activities.

Growing Importance of Tertiary Sector

According to sectors of Indian the economy class 10 notes, there is a growing importance of the tertiary sector. 

  • In any country, the importance of several essential services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies etc. stands highly recognized.
  • The development in agriculture and industries leads to an increased demand for services like transport trade etc. Thus, resulting in the development of services such as transport, commerce, storage and the like. The more significant the development of primary and secondary sectors more will be the demand for such services.
  • With the income level rise, individual sections of the population will demand more services like tourism, shopping, private hospitals, professional training, etc.
  • Over the past decade or so, certain new services such as those based on information and communication technology have become important & essential.

Sectors of the Indian Economy Class 10 NCERT PDF

Sectors of the Indian Economy Class 10 Notes PPT

Credits: Harini Gunasekaran

NCERT Important Questions and Answers

Do you think the classification of economic activities into primary, tertiary, and secondary is useful? Explain how.

As indicated below, categorizing economic activity into primary, secondary, and tertiary sectors is useful because:

1. It offers information on how and where a country’s citizens are employed. In India, for example, the primary sector employed almost 60% of the workforce in 2000, far outnumbering all other sectors.
2. It also aids in determining which sectors of economic activity contribute the most and least to the country’s GDP and per capita income.
3. If the tertiary sector grows considerably faster than the primary sector, it suggests that agriculture is depleting and that the government must take steps to address this.
4. We can only be aware that the agricultural profession is becoming unpopular or regressive if we recognize which sector it belongs to.
5. It informs us about the job circumstances in many industries. In India, for example, the primary sector is plagued with hidden unemployment. More people are working in this industry, and even if some are laid off, the output will not suffer.
6. It informs us about developments in many industries. For example, the importance of the tertiary sector has grown as a result of many causes such as the demand for basic services and the arrival of IT services.

How is the tertiary sector different from other sectors? Illustrate with few examples.

The tertiary sector differs from the other sectors as follows:

1. Tertiary sector activities aid in the growth of the primary and secondary sectors.
2. These actions do not generate a good in and of itself, but they provide help or support for the manufacturing process. For example, the transportation system aids in the transportation of commodities from the factory to marketplaces for sale or storage in godowns.
3. It offers telephones and other items to merchants in order for them to communicate with one another. Banks lend money to help in production and commerce.
4. As a result, transportation, storage, communication, and so on are not tertiary activities. On the other hand, the primary sector serves as the foundation for all future goods. Minerals and ores are natural materials that are transformed into various forms via the process of production. 

What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.

Disguised unemployment is a type of unemployment in which persons appear to be working but are actually unemployed. This is sometimes referred to as Hidden Unemployment. In such a case, more persons are engaged in labour than is necessary. In rural regions, for example, this sort of unemployment is commonly encountered in the agricultural industry, as in a family of nine individuals all working on the same agricultural plot. However, removing four persons from the equation has no effect on production. As a result, these four persons are working undercover. This form of unemployment is particularly common in service sectors such as the whole family is working in one petty store or a tiny business that can be handled by a small number of people.

Distinguish between open unemployment and disguised unemployment.

Open Unemployment – When a country’s labour force does not have enough work options, this is referred to as open unemployment. This sort of unemployment is common in our country’s industrial sector. This is also prevalent among rural landless agricultural labourers.
Disguised Unemployment — This is a type of unemployment in which people appear to be working but do not have full-time employment. In such a case, more persons are engaged in labour than is necessary. This form of unemployment is most common in the unorganized sector when either work is not always accessible or too many people are hired for the same job that does not require so many hands.

The service sector in India employs two different kinds of people. Who are these?

The service sector in India employs the two types of workers listed below. They are as follows: 
a) People who are involved in services that may directly aid in the creation of products. People in the transportation, storage, communication, and financial industries, for example.
(b) People who provide services that do not immediately contribute to the creation of products, such as teachers, physicians, barbers, cobblers, attorneys, and so on. They are referred to as auxiliary employees since they provide services to the major service providers.

Sectors of the Indian Economy: Assignment

  1. Using examples from your area compare and contrast the activities and functions of private and public sectors.
  2. Give three examples of Public Sector activities and explain why the government has taken up them.
  3. Explain how the Public sector contributes to the economic development of a nation.
  4. The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples.
  5. Compare the employment conditions prevailing in the organised and unorganised sectors.
  6. Explain the objective of implementing the NREGA 2005.
  7. How are the activities in the economy classified on the basis of employment conditions?
  8.  Workers are exploited in the unorganized sector. Do you agree with this view.? Give reasons in support of your answer.
  9. The tertiary sector is not playing any significant role in the development of the Indian economy. Do you agree/ Give reasons in support of your answer?
  10. For each of the following sectors that we came across in this chapter, why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.


Which sector of the Indian economy is the most vital?

In terms of total production, the service sector has taken the lead and begun to increase employment.

Why do we need sectors in a class 10 economy?

A relatively large number of goods and services are produced through the various production processes in the primary, secondary, and tertiary sectors. In addition, a sizable workforce is employed by the three sectors to produce these goods and services.

Which industry in India is expanding quickly?

By 2022, the Indian healthcare sector is expected to be worth $372 billion, according to Invest India. Furthermore, the hospital sector in India provides 80% of the country’s healthcare spending and is anticipated to grow by 16–17% to $132.84 billion by 2022. It is without a doubt one of the industries in India that is expanding the quickest.

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Difference Between Micro and Macro EconomicsNCERT Economics Class 10: Notes & Important Questions

So, this was all about the sectors of Indian the economy class 10 notes. We hope these notes help you ace your exam. Choosing the right stream after class 12th is an essential factor. If you are confused about which stream to choose, get in touch with our Leverage Edu experts. They will help you carve a niche for yourself. Sign up for a free session today! You can also follow the school education page of Leverage Edu for NCERT Study Materials.

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