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Question:
With so many activities taking place around us, one needs to use the process of classification to think in a useful manner. The criterion for classification could be many depending on what we desire to find out. The process of classification helps to analyse a situation.
In dividing the economic activities into three sectors — primary, secondary, tertiary — the criterion used was the ‘nature of activity’. On the basis of this classification, we were able to analyse the pattern of total production and employment in India. Similarly, we divided the economic activities into organised and unorganised and used the classification to look at employment in the two sectors. What was the most important conclusion that was derived from the classification exercises?
What were the problems and solutions that were indicated? Can you summarise the information in the following table?
Table 2.4 Classifying Economic Activities
Answer:
Table 2.4 Classifying Economic Activities
- Activities based on the direct use of natural resources, agriculture, animal husbandry, mining, fisheries, forest produce are included in the primary sector.
- The conversion of natural products into other forms through the manufacturing system is included in the secondary sector. Industries, manufacturing, dams, water supply, electricity, etc. are the main activities of the secondary sector.
- The service sector is included in the tertiary sector. Tertiary sector activities include communication, means of transport, storage, banking, education, health, trade etc.
- Tertiary sector is very important in India because many services in the country, such as hospitals, educational institutions, post and telegraph service, police stations, courts, rural administrative offices, municipal corporations, defense, transport, banks, insurance companies, etc. come under this. Huh .
- In the organized sector, those enterprises or workplaces come where the period of employment is regular. They are registered by the regional government.
- In the context of India, it is noteworthy that although there has been a change in the share of all the three sectors in the GDP. The share of the tertiary sector in GDP is more than 60%. But in the field of employment, the number of people working in the tertiary sector is about 27%. Most of the employment in India is obtained from the primary sector.
- A law has been made to enforce the right to work in India. This is called the National Rural Employment Guarantee Act, 2005. Under this, work is given to those people who are able to work and those who need work, they have been guaranteed 100 days of employment in a year by the government. If the government fails to provide work, then in this situation there is a provision to give unemployment allowance to the people by the government.
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