Sectors of Indian Economy: 10 Economics

Question: What are the advantages of working in an organised sector?
Or
What is an organised sector? Describe its working conditions.

Answer: An organised sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work. They are registered by the government and have to follow its rules and regulations which are given in various laws such as the Factories Act, the Minimum Wages Act, the Payment of Gratuity Act, Shops Act, etc.

1. Workers in the organised sector enjoy security of employment.
2. They work only for a fixed number of hours. If they work more, they have to be paid overtime by the employer.
3. They also get several other benefits from the employers like paid leave, payment during holidays, provident fund, gratuity, etc.
4. They also get medical benefits and, under the laws, the factory manager has to ensure facilities like drinking water and a safe working environment.

Question: Explain the role of government in the public sector.

Answer:

1. Development of infrastructure: The pace of industrial development cannot be accelerated without the establishment of infrastructure. Its development requires huge capital investment, which cannot be mobilised by the private sector. Moreover, these projects do not promise high profits.
2. Development of backward areas: The goal of achieving a reduction in economic inequality between regions becomes easy to reach, if industries are set up in the backward areas. But the profit seeking private industrialists often are not enthusiastic enough to set up industry in the backward regions. The government, therefore, finds it necessary to start industrial production in these areas on its own.
3. Basic facilities: There are a large number of activities which are the primary responsibility of the government. The government must spend on these. Providing health, quality education, particularly elementary education, is the duty of the government. India’s size of illiterate population is one of the largest in the world.
4. Other problems: There are many other problems like malnourishment, high infant mortality rate, unsafe drinking water, lack of housing facilities, etc., which need special attention. These problems can be solved only with the help of the government.

Question: Do you agree that agriculture is an activity of the unorganized sector in India. Give any four points.

Answer: Yes. Agriculture in India is an activity of the unorganized sector.

1. Most of the workers working in agriculture are ill paid.
2. Agriculture sector faces the problem of under employment.
3. Most of the workers working in agriculture are employed only during harvesting and sowing season.
4. Most of the farmers are dependent on moneylenders and relatives for their loan requirements.

Question: How can workers in the unorganized sector be protected? Explain.

Answer:

1. Government can fix the minimum wages rate and working hours.
2. Government can provide cheap loans to the self employed people.
3. Government can provide cheap and affordable basic services like education, health, food to these workers.
4. Government can frame new laws which can provide provision for overtime, paid leave, leave due to sickness, etc.

Question: Write two groups of people working in unorganized sector who are in need of protection. How can the government protect them ?

Answer:

1. In the rural areas, the unorganized sector mostly comprises the landless agricultural labourers, small and marginal farmers, sharecroppers and artisans (such as weavers, blacksmiths, carpenters and goldsmiths).
2. In the urban areas, the unorganized sector mainly comprises workers in small-scale industry, casual workers in construction, trade and transport, etc. It also consists of those who work as street vendors, head load workers, garment makers, rag pickers, etc.

   Role of Government:
   (i) Government can provide them cheap loans.
   (ii) Government can provide basic facilities like education, food, health at cheap and affordable rate.

Question: Explain how a shift has taken between sectors in developed countries.

Answer:

1. At initial stages of development, it was the primary sector which dominated. Most of the people were employed in the primary sector only.
2. With the introduction of new methods of farming and manufacturing people started working in other activities i.e. manufacturing. So secondary sector gradually became the most important in total production and employment.
3. In the past 100 years the service sector has become the most important in terms of total production and employment.
4. The domination of service sector is due to globalization of the world economy.