Extra 20 long-answer questions and answers (5-6 points each) from Chapter: Sectors of the Indian Economy of Class 10 CBSE Economics:
1-10: Types of Sectors & Their Importance
1. What are the different sectors of the Indian economy? Explain with examples.
Ans: The Indian economy is divided into three sectors:
Primary Sector:
Activities involving natural resources like agriculture, fishing, mining, and forestry. Example: Farming.
Secondary Sector:
Includes industries that process raw materials into finished goods. Example: Textile factories, iron and steel industries.
Tertiary Sector:
Provides services instead of goods. Example: Banking,
education, transport.
Interdependence:
The primary sector provides raw materials, the secondary sector processes them, and the tertiary sector supports both.
Contribution to GDP:
The tertiary sector contributes the most to India's GDP.
Employment Trends:
The primary sector employs the most workers, while the tertiary sector is growing rapidly.
2. Why is the primary sector important in the Indian economy?
Ans: The primary sector plays a crucial role in India's economy due to:
Major Employment Provider:
More than 40% of India’s workforce is in agriculture.
Source of Raw Materials:
Provides essential resources like cotton, wheat, and minerals for industries.
Supports Industrial Growth:
Raw materials from this sector fuel manufacturing and processing industries.
Contribution to GDP:
Although its share in GDP is decreasing, it remains vital for economic stability.
Food Security:
Ensures a stable food supply for the population.
Rural Development:
Helps in reducing poverty and supporting rural livelihoods.
3. What are the features of the secondary sector?
Ans: The secondary sector is crucial for economic development and includes:
Manufacturing & Construction:
Converts raw materials into finished goods (e.g., steel, textiles).
Industrial Growth:
Supports national economic growth and modernization.
Employment Generation:
Provides jobs in factories and industrial plants.
Urbanization:
Leads to the development of cities and better infrastructure.
Technological Advancement:
Encourages innovation and productivity.
Exports & Trade:
Industrial products are exported, boosting foreign exchange earnings.
4. Why is the tertiary sector important in India?
Ans: The tertiary sector has gained significance because:
Largest GDP Contributor:
The service sector contributes the most to India’s economy.
Employment Growth:
Generates jobs in IT, healthcare, education, banking, and transport.
Support to Other Sectors:
Provides logistics, banking, and communication to industries and agriculture.
Urbanization Impact:
Cities require more services like retail, hotels, and entertainment.
IT and Technology Boom:
The growth of software companies has boosted India's global presence.
Government and Public Services:
Includes essential services like law enforcement,
defense
, and administration.
5. Differentiate between the primary, secondary, and tertiary sectors.
Ans:
Feature |
Primary Sector |
Secondary Sector |
Tertiary Sector |
---|---|---|---|
Definition |
Uses natural resources |
Manufactures goods |
Provides services |
Examples |
Farming, fishing |
Steel production, textiles |
Banking, education |
Contribution to GDP |
Decreasing |
Moderate |
Highest |
Employment |
Largest employer |
Growing employment |
Increasing rapidly |
Importance |
Food security, raw materials |
Industrial growth |
Supports other sectors |
6-10: Organized vs. Unorganized & Employment
6. What are the differences between the organized and unorganized sectors?
Ans:
Feature |
Organized Sector |
Unorganized Sector |
---|---|---|
Job Security |
Yes |
No |
Fixed Wages |
Yes |
No, irregular income |
Government Regulation |
Yes |
No |
Benefits (PF, Insurance, etc.) |
Provided |
Not provided |
Examples |
Government jobs, MNCs |
Daily wage laborers, small shops |
7. Why do workers in the unorganized sector need protection?
Ans:
Job Insecurity:
They can be removed from work anytime.
No Fixed Wages:
Income depends on daily earnings, leading to financial instability.
Lack of Benefits:
No pension, insurance, or job security.
Exploitation:
Employers may force long working hours with low pay.
Unsafe Working Conditions:
No health benefits, increasing workplace hazards.
Child
Labor
Issues:
Many children are forced into work due to poverty.
8. What is disguised unemployment? Explain with an example.
Ans:
Definition:
When more people work than required, without increasing productivity.
Example:
A family of six working on a small farm, but only three are actually needed.
Common in Agriculture:
Many rural families have disguised unemployment.
Hidden Unemployment:
Workers appear employed but do not contribute much.
Effect on Economy:
Reduces productivity and economic growth.
Solution:
Providing alternative employment opportunities.
9. What is seasonal unemployment?
Ans:
Definition:
When workers remain unemployed for part of the year.
Example:
Farmers who are jobless between sowing and harvesting seasons.
Common in Agriculture:
Rural workers suffer seasonal job losses.
Low Income Levels:
Irregular work leads to poverty.
Solution:
Government programs like MGNREGA offer alternative jobs.
Diversification Needed:
Encouraging rural industries and small businesses.
10. How does MGNREGA 2005 help reduce unemployment?
Ans:
Full Form:
Mahatma Gandhi National Rural Employment Guarantee Act.
Objective:
Provides 100 days of guaranteed wage employment.
Target Group:
Focuses on rural workers and poor households.
Impact on Unemployment:
Reduces seasonal and disguised unemployment.
Infrastructure Development:
Workers build roads, water conservation projects.
Women Empowerment:
Encourages female participation in the workforce.
11-20: Public vs Private Sector & Government Role
11. What are the differences between the public and private sectors?
Feature |
Public Sector |
Private Sector |
---|---|---|
Ownership |
Government |
Individuals/Companies |
Objective |
Welfare of society |
Profit-making |
Examples |
Indian Railways, ONGC |
Tata, Reliance |
Employment |
Job security |
High wages but job instability |
12. Why is the government involved in the public sector?
Ans:
Provides Essential Services:
Roads, electricity, healthcare.
Ensures Economic Equality:
Reduces income gaps by creating jobs.
Supports Poor Sections:
Free education, ration distribution.
Infrastructure Development:
Builds roads, bridges, and power plants.
National Security:
Maintains
defense
industries.
Regulates Private Sector:
Prevents unfair trade practices
13. Why is the tertiary sector growing in importance in India?
Ans: The tertiary sector is expanding due to several factors:
Rising Demand for Services:
More people need services like healthcare, banking, and education.
Urbanization:
As cities grow, services like transport and IT increase.
Growth of IT & Communication:
The software industry and online services are expanding rapidly.
Support for Other Sectors:
The tertiary sector helps the primary and secondary sectors function effectively.
Government Initiatives:
Public services like education, transport, and tourism have increased.
Foreign Investment:
Global companies invest in India’s service sector, boosting its growth.
14. What are the advantages of employment in the organized sector?
Ans: The organized sector provides better working conditions, such as:
Fixed Working Hours:
Employees work for a set number of hours.
Job Security:
Workers cannot be fired without valid reasons.
Fair Wages:
Salaries are fixed and regulated by
labor
laws.
Additional Benefits:
Employees get pensions, insurance, and paid leave.
Safe Working Conditions:
Companies must follow safety regulations.
Legal Protection:
Workers have rights under government laws.
15. What are the disadvantages of the unorganized sector?
Ans: Workers in the unorganized sector face many difficulties:
Low Wages:
No fixed income, leading to financial instability.
No Job Security:
Workers can be fired anytime.
Lack of Benefits:
No pension, medical insurance, or paid leave.
Poor Working Conditions:
No proper safety measures at workplaces.
Irregular Working Hours:
Employees may have to work long shifts.
Exploitation:
Employers may take advantage of workers' lack of awareness about
labor
laws.
16. How does the public sector contribute to economic development?
Ans: The public sector plays a crucial role in economic growth:
Provides Infrastructure:
Builds roads, railways, electricity, and water supply.
Ensures Employment:
Offers stable jobs in government departments and industries.
Supports the Poor:
Provides education, healthcare, and food security schemes.
Develops Industries:
Supports industries like steel, oil, and
defense
, which are vital for the economy.
Promotes Regional Growth:
Helps underdeveloped areas grow by setting up government projects.
Ensures National Security:
Manages
defense
and public safety services.
17. How do different sectors of the economy depend on each other?
Ans: The primary, secondary, and tertiary sectors are interdependent:
Primary to Secondary:
Raw materials from agriculture and mining (primary sector) are used in manufacturing (secondary sector).
Secondary to Tertiary:
Manufactured goods need transport, marketing, and banking services (tertiary sector).
Tertiary to Primary & Secondary:
Services like education and healthcare improve
labor
productivity in both sectors.
Agriculture Needs Services:
Farmers require transportation, storage, and financial services.
Industries Depend on Power & Transport:
Factories need electricity, roads, and skilled
labor
.
Economic Growth Needs All Sectors:
A balanced economy requires all three sectors to function smoothly.
18. What is the role of the private sector in economic development?
Ans: The private sector plays an important role in India’s economic growth:
Industrial Growth:
Private industries expand manufacturing and exports.
Employment Generation:
Private companies create jobs in various fields.
Innovation and Technology:
Private firms invest in research and new technologies.
Increases Government Revenue:
Private businesses pay taxes that fund public services.
Encourages Competition:
Leads to better products and services for consumers.
Attracts Foreign Investment:
Helps in economic globalization and trade expansion.
19. What are the problems faced by the primary sector in India?
Ans: The primary sector, especially agriculture, faces several issues:
Low Productivity:
Traditional farming methods lead to low output.
Seasonal Unemployment:
Farmers remain jobless between harvests.
Unreliable Monsoons:
Rain-dependent farming affects production.
Lack of Modern Equipment:
Many farmers still use outdated tools.
Price Fluctuations:
Farmers face income instability due to changing crop prices.
Land Fragmentation:
Small landholdings reduce efficiency in farming.
20. How can the government support workers in the unorganized sector?
Ans: The government can take steps to improve working conditions:
Minimum Wage Laws:
Ensuring fair salaries for workers.
Providing Social Security:
Expanding pension and insurance schemes.
Improving Work Conditions:
Enforcing
labor
laws in informal industries.
Encouraging Skill Development:
Training workers to help them find better jobs.
Promoting Small-Scale Industries:
Supporting small businesses to create employment.
Expanding Employment Schemes:
Strengthening programs like MGNREGA for rural workers