Sectors of the Indian Economy | Class 10 Social Science Notes

PRIMARY, SECONDARY AND TERTIARY SECTORS IN INDIA

India's economic structure has changed significantly over the past four decades. Data from 1977-78 and 2017-18 show the growth in production in the primary, secondary, and tertiary sectors.

In 1977-78, the primary sector was the largest producer of goods and services. By 2017-18, the tertiary sector had overtaken the primary sector to become the largest contributor to the economy. This shift reflects the rising importance of services in India.

Several reasons explain the growth of the tertiary sector. First, essential services such as hospitals, education, postal services, police, courts, and municipal services are necessary for society and are often provided by the government. Second, as agriculture and industry develop, demand for services like transport, trade, and storage increases. Third, rising incomes lead to higher demand for services like tourism, private healthcare, and education, especially in urban areas. Fourth, new information and communication technology services have expanded rapidly.

However, the growth in the service sector is uneven. While some services employ highly skilled workers, a large number of workers in small shops, repair services, and transport earn low incomes and have limited opportunities. This dual nature of the service sector is important to understand.

Despite the growth in production, employment patterns have not shifted as much. The primary sector still employs more than half of India's workforce but contributes only about one-sixth of the Gross Value Added (GVA). This indicates underemployment in agriculture, where more people are engaged than necessary, leading to disguised unemployment.

For example, a small farmer like Laxmi with unirrigated land employs all family members throughout the year, but their work is divided and less than full employment. If some family members move to other jobs, agricultural production may not decline, and family income can increase.

Similarly, many casual workers in urban service sectors face irregular employment and low wages. Understanding these patterns is crucial for planning employment and development policies.

📊 Diagram: See figure_8: Graph showing GVA by primary, secondary, and tertiary sectors for 1977-78 and 2017-18; See figure_9: Graph showing share of sectors in GVA; See figure_10: Graph showing share of sectors in employment; See figure_11: Illustration depicting underemployment.

🧪 Activity: Answer questions based on graphs about sectoral shares; Discuss reasons for sectoral shifts and employment patterns.

🔗 Connection: This section leads to exploring employment patterns and how to create more employment.