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Sectors of the Indian Economy Class 10 Notes: CBSE Economics Chapter 2

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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.

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Table of Content
1. CBSE Class 10 Economics Chapter 2 Notes FREE PDF Download
2. Access Class 10th Economics Chapter 2 Notes
    2.1Economic Activity Sectors
    2.2Introduction
    2.3Different Sectors of the Indian Economy
    2.4Difference Between the Three Sectors of the Economy
    2.5Historical Changes in Sectors:
    2.6Where are Most of the People Employed?
    2.7How to Create More Employment?
    2.8Mahatma Gandhi National Rural Employment Guarantee Act (Mgnrega): 
    2.9Different Sectors in Terms of Operations
    2.10Counting Goods and Services
    2.11The Growth of the Service Sector in India
    2.12Imbalance Among the Sectors
    2.13Government Responsibilities
3. 5 Important Topics of Economics Sectors of the Indian Economy Class 10 Notes
4. Importance of Class 10th Economics Chapter 2 Notes
5. Tips for Learning the Economics Chapter 2 Class 10 notes
6. Related Study Materials for Class 10 Economics Chapter 2 Sectors of the Indian Economy
7. Chapter-wise Revision Notes Links for Class 10 Economics
8. Important Study Materials for Class 10 Social Science - Economics
FAQs


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.

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Access Class 10th Economics Chapter 2 Notes

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

The GDP Graph


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

Organised Sector

Unorganised Sector

Provides fixed and secure employment, with work based on motivation and qualifications.

Government has little influence over this sector.

Adheres to government norms and regulations.

Workers do not have the same level of job security as those in the organised sector.

Employees have job security.

Overtime work is not compensated.

Employment terms are fixed, regular, and employees receive assured work.

Consists of small, scattered units largely outside government control.

Registered with the government and must adhere to laws, rules, and regulations (e.g., Factories Act, Minimum Wages Act).

Rules and regulations exist but are often not followed due to lack of registration.

Fixed working hours with overtime pay provided by the employer.

Jobs are low-paid, irregular, and lack fixed working hours.

Provision for paid leave, holidays, provident fund, gratuity, etc.

No provision for overtime, paid leave, holidays, or sick leave.

Employees receive medical benefits, and facilities like drinking water and a safe working environment are ensured. Retirees receive pensions.

No such facilities or benefits are provided.

Examples: Government employees, private corporate jobs, school teachers, etc.

Examples: Street vendors, farming, domestic work, labourers, etc.


Public Sector

Private Sector

The government controls most assets and is responsible for all services in the public sector.

Asset ownership and service delivery are in the hands of private individuals or corporations.

The public sector's goal isn't only to make money; its main goal is to benefit the general population.

Profit is the primary motivator for private-sector activity.

The public sector includes entities like railways and post offices.

Tata Iron and Steel Company Limited (TISCO) and Reliance Industries Limited (RIL) are examples of private companies.

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

S. No

Topic Name

1

Primary Sector

2

Secondary Sector

3

Tertiary Sector

4

Economic Development

5

Sectoral Employment


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.


Related Study Materials for Class 10 Economics Chapter 2 Sectors of the Indian Economy


Chapter-wise Revision Notes Links for Class 10 Economics


Important Study Materials for Class 10 Social Science - Economics

FAQs on Sectors of the Indian Economy Class 10 Notes: CBSE Economics Chapter 2

1. Is it True that the Tertiary Sector does not Help Much in the Development of the Indian Economy according to sectors of indian economy class 10 notes pdf?

Although the creation of jobs in the Tertiary sector does not happen at a quick pace, the sector is an intrinsic part of the development of Indian economy. For example, it is the banking sector that gives loans to small farmers so that they can improve their livelihood. Secondly, the IT sector of India provides jobs to thousands of youth. It is not stagnant - it is growing at an amazing pace. Thirdly, the Primary and the Secondary sectors get great support of the Tertiary sector.

2. What is the Third Sector that is Emerging other than the Private and the Public Sectors in class 10 economics chapter 2 notes?

Apart from the public and private sector, one more sector is emerging as an effective way of helping people - the public-private-partnership. Although this model is in its infancy and it has not matured into a full-fledged sector, this model has tremendous potential.

3. What are the sectors of Indian economy class 10?

There are a total three sectors prevailing in the Indian economy. Following are the three sectors:

  • Primary Sector- It includes the production of goods and services using natural resources. This sector is known as the agricultural sector.

  • Secondary Sector- It includes manufacturing of natural resources into processed goods. This sector is known as the industrial sector.

  • Tertiary Sector- This sector assists the primary and secondary sectors. It provides various facilities like transportation and banking to the first two sectors and is called the service sector.

4. What is disguised unemployment in class 10th economics chapter 2 notes?

Supposedly, there is a family with 10 eligible workers. The family owns a land which requires the labour of only 5 workers. But if all the 10 members start working in the same field, the remaining 5 will come under disguised unemployment. The efforts of these 5 members will eventually bring no output to the family. Disguised unemployment or hidden unemployment is a form of unemployment in which people appear to be employed when they are actually not.

5. What is the difference between Public and Private sectors class 10?

Sectors are also classified based on who owns them. Public sectors include companies that are owned and run by the government. The chief motive of this sector is the welfare of the society. For example, post offices, nationalised banks, etc. Whereas, private sectors include companies that are owned by an individual or a group of individuals. The main aim of the private sector is to earn profits through their business. Some examples are Reliance, TATA, etc.

6. According to class 10 economics chapter 2 notes PDF why is the scheme of MGNREGA useful for India?

Our country is the second most populous in terms of people, but it also has a very high unemployment rate. A better career chance is largely denied to those living in rural areas. Keeping them in mind, the government of India had implemented a law governing right to work which is called Mahatma Gandhi National Rural Employment Guarantee Act 2005, under which, 100 days of employment in a year is promised to those who are eligible to work.

7. How can I study Class 10 economics Chapter 2?

When it comes to Class 10, each and every chapter matters. For Chapter 2 in Economics that is 'Sectors of Indian Economy', students should understand the various sectors prevailing in the Indian economy. The chapters comprise many important terminologies and their definitions which should be learned by heart. While learning the concepts, keep practising the questions given at the end of the chapter. You can find important questions from sample papers and previous years' papers here Vedantu and practise their answers.

8. How does the primary sector contribute to the economy in class 10 economics chapter 2 notes?

The primary sector provides raw materials and resources needed for other sectors. It includes activities like farming, fishing, mining, and forestry.

9. What is the role of the secondary sector in economic development in Class 10 Economics?

The secondary sector processes raw materials from the primary sector into finished goods and products. It includes industries like manufacturing, construction, and energy production.

10. In sectors of indian economy class 10 notes PDF what is the importance of the tertiary sector in modern economies?

The tertiary sector provides services such as education, healthcare, transportation, and banking, which support other sectors and contribute to economic growth.

11. How has the contribution of each sector to India’s GDP changed over time?

Over time, the contribution of the primary sector to GDP has decreased while the secondary and tertiary sectors have increased, reflecting economic development and industrialisation.

12. What are some challenges faced by the primary sector in India explained in sectors of Indian economy class 10 notes PDF?

Challenges include poor infrastructure, inadequate irrigation facilities, fluctuating prices of agricultural products, and dependency on monsoon.