CBSE Class 10 Economics Chapter 2 Notes FREE PDF Download
Vedantu’s introduction to Class 10 Economics Chapter 2, "Sectors of the Indian Economy," explains how the Indian economy is divided into three main sectors: primary, secondary, and tertiary. The chapter covers how each sector contributes to the economy and their roles in economic development. Class 10 Economics Revision Notes are especially useful for students struggling to create notes with their packed schedules.
Table of Content
Our notes are designed to simplify complex ideas, making it easier for you to grasp key concepts and prepare effectively for your exams according to the CBSE Class 10 Economics Syllabus. By understanding these sectors, students will gain insights into how economic activities are organised and their impact on growth. This knowledge is crucial for grasping the structure of the Indian economy and preparing effectively for exams. You can access the class 10 economics chapter 2 notes PDF download on this page below.
Economic Activity Sectors
Introduction
Sectors are groups of people who engage in diverse activities including the production of commodities or services. Economic activities are those that result in revenue and profit. A farmer, for example, harvests crops in order to sell and profit; an industry, on the other hand, produces things or services for people in order to profit.
Different Sectors of the Indian Economy
1. Primary Sector: The primary sector is when we make a product by extracting and collecting natural resources. Farming, forestry, hunting, fishing, and mining are just a few examples.
2. Secondary Sector: It includes operations that include the transformation of natural goods into new forms through various manufacturing processes. After primary school, it's time to go on to secondary school. In this case, some production steps are required. The industrial sector is another name for it. For example, we spin yarn and make cloth from the plant's cotton fiber. Sugar or Gur is produced using sugarcane as a basic ingredient.
3. Tertiary Sector: Activities that aid in the growth of the elementary and secondary sectors are included in the tertiary sector. These actions do not generate a good in and of itself, but they help or support the production process. It's also known as the service sector. Teachers, doctors, washermen, barbers, cobblers, lawyers, call centres, software businesses, and so on are some examples.
Difference Between the Three Sectors of the Economy
All three sectors, primary, secondary, and tertiary, are interdependent and interconnected in the day-to-day performance of diverse economic activities. It's nearly hard to keep track of all the activities that go into producing the final goods or services.
Gross Domestic Product (GDP): The sum of the output that is once done through primary, secondary, and tertiary activities is known as the Gross Domestic Product (GDP). The value of all of these final goods from all three sectors would be counted into the gross domestic product, and when we talk about the net domestic product, we eliminate any depreciation from that gross number to get the net product.
The below graph shows how the GDP varies from each sector
Historical Changes in Sectors:
1. The primary sector was the most important sector of economic activity in a country throughout its early phases of development.
2. The agriculture sector began to generate significantly more food than before as a result of technological advancements in farming processes.
3. People began working in factories. Some persons are also involved in the transportation industry.
4. The secondary sector gradually became the most important in terms of the economy and employment.
5. A great variety of industries relating to food processing, equipment manufacturing, and textiles are present.
6. This resulted in the establishment of services such as banking, health care, and education.
7. In terms of total production, the service industry has overtaken manufacturing as the most significant sector, and it has begun to employ more people.
Where are Most of the People Employed?
The tertiary sector overtook the primary sector as India's largest producing sector in 2013-14. The tertiary sector in India has been increasingly important for the following reasons:
1. Hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defense, transportation, banks, insurance businesses, and other services are considered vital for everyone.
2. Agriculture and industry expansion lead to the expansion of services such as transportation, commerce, and storage.
3. As people's incomes rise, they expect more luxuries like dining out, tourism, shopping, private hospitals, private schools, professional training, and so on.
4. During the recent decade, several new information and communication technology-based services have become increasingly important and indispensable.
Disguised Unemployment: Unemployment is the only aspect of the economy that has no bearing on overall output. When productivity is low and there are too many people for too few jobs, this happens. It can apply to any group of people that aren't working to their full potential.
How to Create More Employment?
People can find work by locating industries and services in semi-rural areas and identifying, advertising, and locating them. Every state or region has the potential to boost its residents' income and job opportunities. Tourism, regional craft industries, and emerging services like IT can all help. According to NITI Aayog, research undertaken by the Planning Commission, approximately 20 lakh employments can be produced in the education sector alone.
In 2005, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was enacted by the central government of India to implement the Right to Work in about 625 districts across the country.
Mahatma Gandhi National Rural Employment Guarantee Act (Mgnrega):
It is primarily used by persons who live in rural areas who are able and willing to work. Every year, the MGNREGA gives at least 100 days of work to rural households that voluntarily volunteer to conduct unskilled work.
The MGNREGA scheme is open to any Indian citizen over the age of 18 who lives in a rural area.
Another goal of the MGNREGA act is to give rural communities long-term assets such as roads, wells, and ponds.
If the government fails to produce jobs, the people will be forced to rely on unemployment benefits.
It is implemented without the use of contractors or agents in gram panchayats.
This law aids in the preservation of the village environment, the empowerment of rural women, the promotion of social equality, the reduction of migration to urban regions, and the provision of essential services, among other things.
Different Sectors in Terms of Operations
Counting Goods and Services
The health and number of the goods and services sectors in a country reflect its economic condition - whether it is good or bad. But a country produces so many goods and services. Counting all of them will result in chaos. So Economics Class 10 Ch 2 Notes suggest that we should not count the number of goods and services. Rather we should count the value of these goods and services. We should also remember that while counting the value of the goods and service we must count the final product - The product that reaches the end consumers.
So now, if we count the values of all the final products in a sector we will get the value of the total production of that sector. The notes of Economics Class 10 Chapter 2 informs that if we add the total production of all the three sectors we get the GDP of the country.
The Growth of the Service Sector in India
When India gained independence, the economy was mostly based on agriculture. Later we started bringing out more minerals and metals from our resources. Now as these basic sectors got developed, the demand to sustain these sectors increased. And how do you sustain these Primary sectors? By building a service or Tertiary sector around these sectors - like transport, storage etc.
Again as the standard of living of the Indians improved, their demands and aspirations got higher. This resulted in the advent of more service sectors - like restaurants, cinema halls etc. This is specifically true in urban areas.
Furthermore, in the past 20 years or so, the IT sector in India has flourished a lot. Many overseas companies find it cost-effective to outsource their IT related work to India. Indians are hardworking and they know English well. So they, unlike the Chinese, can easily mingle with the foreign companies and work well with them.
Imbalance Among the Sectors
It is true that the IT sector and other such advanced sectors hire educated people and give them handsome salaries. There are, however, many people who are not fortunate enough to work in these sectors primarily because of the lack of education and secondarily because there are not enough jobs in the service sectors.
Even in this 21st century, most Indians are still connected with the primary sector - especially the agricultural sector. Our class 10 Economics Chapter 2 Notes explain these imbalances in detail.
Government Responsibilities
The government is responsible for many key activities, including:
1. Funding Services: The government raises money through taxes and other means to cover the costs of its services.
2. Infrastructure Development: It undertakes major spending on building roads, bridges, railways, harbours, generating electricity, and providing irrigation through dams. It ensures these facilities are accessible to everyone.
3. Supporting the Private Sector: The government supports certain activities to encourage private sector production and business.
4. Subsidising Essentials: In India, the government buys wheat and rice from farmers at fair prices and sells them at lower rates through ration shops to support both farmers and consumers.
5. Providing Essential Services: The government is responsible for running schools, offering quality education, and providing health services for all.
6. Human Development: It also focuses on human development aspects such as safe drinking water, housing for the poor, food and nutrition, and addressing the needs of the most neglected regions.
5 Important Topics of Economics Sectors of the Indian Economy Class 10 Notes
Importance of Class 10th Economics Chapter 2 Notes
Revision notes help us quickly understand and remember key concepts before exams.
They save time by focusing on essential information and skipping unnecessary details.
These notes simplify complex topics, making them easier to understand and use.
They provide practical examples that show how theoretical knowledge is used in real-life situations.
Revision notes ensure thorough preparation by covering all important topics in a structured manner.
They increase confidence by clearly understanding what to expect in exams.
Accessible formats like PDFs allow for easy studying anytime and anywhere.
Tips for Learning the Economics Chapter 2 Class 10 notes
Get clear understanding on what constitutes the primary, secondary, and tertiary sectors and their functions.
Study how each sector contributes to the economy, including its impact on GDP and employment.
Relate each sector to real-life examples, like agriculture for primary, manufacturing for secondary, and services for tertiary.
Be aware of key issues and challenges faced by each sector, such as agricultural distress or industrial pollution.
Learn how the focus of economies shifts from primary to secondary and tertiary sectors as they develop.
Conclusion
Vedantu’s Chapter 2 of Class 10 Economics, "Sectors of the Indian Economy," provides a clear understanding of how different sectors—primary, secondary, and tertiary—contribute to the overall economy. By exploring how each sector functions and its role in economic growth, students can better appreciate the interconnectedness of these sectors and their impact on daily life. Vedantu's notes simplify these concepts, making it easier to grasp the significance of each sector and how they drive development. Revisiting these notes will help solidify your understanding and prepare you effectively for exams.
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FAQs on Sectors of the Indian Economy Class 10 Notes: CBSE Economics Chapter 2
1. What are the three main sectors of the Indian economy as per the Class 10 syllabus?
The Indian economy is divided into three main sectors based on the nature of economic activity:
- Primary Sector: This involves activities that directly use natural resources. Examples include agriculture, fishing, forestry, and mining.
- Secondary Sector: This sector transforms natural products into other forms through manufacturing. It is also known as the industrial sector. Examples include cotton cloth production and sugar refining.
- Tertiary Sector: This sector provides services that support the primary and secondary sectors. It doesn't produce goods but helps in the development process. Examples include transport, banking, and teaching.
2. How can one quickly revise the key concepts in the 'Sectors of the Indian Economy' chapter?
For a quick and effective revision, focus on the core distinctions and relationships. First, create a simple table comparing the primary, secondary, and tertiary sectors based on their activities and examples. Next, summarise the difference between the organised and unorganised sectors. Finally, create a flowchart showing how the three sectors are interdependent, for instance, how sugarcane from the primary sector is processed in the secondary sector and then transported and sold via the tertiary sector.
3. What is the main difference between the public and private sectors?
The main difference lies in ownership and primary motive. The public sector consists of assets and services owned and managed by the government, with the main goal of public welfare (e.g., Indian Railways, Post Office). In contrast, the private sector is owned by individuals or groups of individuals, with the primary motive of earning profits (e.g., Tata Steel, Reliance Industries).
4. Why has the tertiary sector become the most important in India in terms of production?
The tertiary sector's importance has grown significantly for several reasons. Firstly, as the primary and secondary sectors develop, they require more services like transport, storage, and banking. Secondly, rising income levels increase demand for consumer services like tourism, private schools, and restaurants. Thirdly, the rapid growth of information and communication technology (ICT) has created a new range of essential services, boosting the sector's contribution to India's GDP.
5. How are the primary, secondary, and tertiary sectors interdependent?
The three sectors are deeply interconnected and rely on each other to function. For example, a farmer (primary sector) grows wheat. This wheat is transported (tertiary sector) to a flour mill, which processes it into flour (secondary sector). The flour is then transported again (tertiary) to a bakery, which bakes bread (secondary) and sells it to consumers (tertiary). This chain shows that a disruption in one sector can negatively affect the others.
6. What is meant by disguised unemployment?
Disguised unemployment is a situation where more people are employed in an activity than are actually needed. Even if some workers are removed, the total output does not decrease. This is often seen in the agricultural sector in India, where multiple family members work on a small plot of land that might only require the labour of a few. The extra workers appear to be employed but their contribution to production is zero, hence they are 'disguisedly' unemployed.
7. Why is it important to only count the value of final goods and services when calculating GDP?
The value of only final goods and services is included in Gross Domestic Product (GDP) to avoid the problem of double counting. Intermediate goods are goods used up in producing final goods (e.g., steel used to make a car). The value of the final good (the car) already includes the value of all intermediate goods (steel). If we were to count both the steel and the car, we would be counting the value of the steel twice, leading to an inflated and inaccurate GDP figure.
8. What is the main purpose of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005?
The primary purpose of MGNREGA 2005 is to implement the 'Right to Work' in rural India. It guarantees at least 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual labour. This scheme aims to enhance livelihood security, reduce poverty, and create durable assets like roads and ponds in rural areas.
9. What is Gross Domestic Product (GDP)?
Gross Domestic Product (GDP) represents the total monetary value of all final goods and services produced within a country's geographical boundaries during a particular year. It is a comprehensive measure of a country's economic activity and is calculated by summing up the production value from the primary, secondary, and tertiary sectors.
10. How has the importance of sectors in the Indian economy shifted over time?
There has been a significant historical shift in the sectoral contributions to India's GDP. Initially, the primary sector, particularly agriculture, was the dominant contributor. Over time, as industrialisation progressed, the importance of the secondary sector grew. In the last few decades, following global trends and economic reforms, the tertiary (service) sector has experienced the fastest growth and is now the largest contributor to India's GDP.
