SECTORS OF THE INDIAN ECONOMY
This chapter introduces students to the different ways of classifying economic activities in India, primarily focusing on primary, secondary, and tertiary sectors, and then organized versus unorganized sectors. It also delves into the concepts of Gross Domestic Product (GDP), underemployment, and the roles of public and private sectors in the economy. Understanding these classifications is crucial for analyzing economic development and employment patterns in India.
Classification of Economic Activities: Primary, Secondary, and Tertiary Sectors
Indian economy mein economic activities ko teen main sectors mein classify kiya jaata hai, based on the nature of activity:
- Primary Sector (कृषि क्षेत्र):
- Definition: Activities jismein natural resources ko directly use karke goods produce kiye jaate hain.
- Basis: Natural products ka extraction aur production.
- Examples: Agriculture (kheti), dairy farming (doodh utpadan), fishing (machli pakadna), forestry (vaniki), mining (khanan).
- Reason for name: Yeh sabhi subsequent products ka base form karta hai. Isliye isko 'agriculture and related sector' bhi kehte hain.
- Key Feature: Yeh sector natural products provide karta hai jo further processing ke liye raw material bante hain.
- Secondary Sector (औद्योगिक क्षेत्र):
- Definition: Activities jismein natural products ko manufacturing process ke through other forms mein change kiya jaata hai.
- Basis: Industrial activity aur manufacturing.
- Examples: Cotton se yarn aur cloth banana, sugarcane se sugar ya gur banana, earth se bricks banana, car manufacturing, textile production.
- Reason for name: Is sector mein industries ka development hua, isliye isko 'industrial sector' bhi kehte hain.
- Key Feature: Products nature se directly nahi milte, unhe banaya jaata hai, yaani value addition hota hai.
- Tertiary Sector (सेवा क्षेत्र):
- Definition: Activities jo primary aur secondary sectors ke development mein help karti hain. Yeh khud koi good produce nahi karti, balki services provide karti hain.
- Basis: Services ka provision.
- Examples: Transport (goods ko factory se market tak le jaana), storage (godowns mein goods store karna), communication (telephone, internet), banking (loans provide karna), trade (buying and selling).
- New Services: Recent times mein information technology-based services jaise internet cafes, ATM booths, call centres, software companies bhi ismein include ho gaye hain.
- Essential Services: Kuch services jo directly goods production mein help nahi karti, but society ke liye essential hain, jaise teachers, doctors, washermen, barbers, lawyers, administrative aur accounting services, bhi tertiary sector ka part hain.
- Reason for name: Yeh activities goods ki jagah services generate karti hain, isliye 'service sector' bhi kehte hain.
- Key Feature: Yeh sectors ke liye support system provide karta hai aur khud bhi services generate karta hai.
- Interdependence of Sectors:
- Yeh teeno sectors highly interdependent hain. Ek sector mein problem doosre ko affect karti hai.
- Example: Agar farmers sugarcane sell karna band kar dein toh sugar mills band ho jaayengi (Primary to Secondary).
- Agar transporters strike kar dein toh food urban areas tak nahi pahunchega (Tertiary to Primary/Secondary).
- Agar fertilizers ke daam badh jaayen toh farmers ka production cost badh jaayega (Secondary to Primary).
- Yeh interdependence economic stability ke liye crucial hai.
Measuring Economic Output: Final Goods, Intermediate Goods, and GDP
Economy mein production ko measure karne ke liye kuch key concepts hain:
- Value of Goods and Services:
- Thousands of goods aur services ko directly count karna impossible hai.
- Economists suggest karte hain ki goods aur services ki value ko use kiya jaaye, na ki unke actual numbers ko.
- Example: 10,000 kg wheat @ ₹20/kg = ₹2,00,000. 5000 coconuts @ ₹15/coconut = ₹75,000.
- Final Goods and Services (अंतिम वस्तुएँ और सेवाएँ):
- Definition: Woh goods aur services jo directly consumers tak pahunchte hain aur further production process mein use nahi hote.
- Importance: GDP calculate karte waqt sirf final goods aur services ki value ko count kiya jaata hai.
- Reason: Agar intermediate goods ko bhi count kiya toh double counting ho jaayegi.
- Example: Biscuit (final good) ki value mein flour, sugar, oil (intermediate goods) ki value already included hoti hai.
- Intermediate Goods (मध्यवर्ती वस्तुएँ):
- Definition: Woh goods jo final goods banane mein use hote hain ya production process mein consume ho jaate hain.
- Example: Wheat jo flour mill ko becha gaya, flour jo biscuit company ko becha gaya.
- Gross Domestic Product (GDP) - सकल घरेलू उत्पाद:
- Definition: Ek particular year mein ek country ke andar produce kiye gaye sabhi final goods aur services ki total value.
- Significance: GDP economy ka size show karta hai. Higher GDP matlab bigger economy.
- Calculation: Har sector (primary, secondary, tertiary) mein produce kiye gaye final goods aur services ki value ko add karke GDP calculate kiya jaata hai.
- In India: Central government ministry (NITI Aayog se pehle Planning Commission) yeh mammoth task undertake karti hai, states aur UTs ke departments ki help se.
- Gross Value Added (GVA):
- Concept: Recent times mein Indian government ne GDP ki jagah GVA ko use karna shuru kiya hai, global practices ke saath align karne ke liye.
- Definition: GVA economy ke teen sectors ke contribution ko measure karta hai taxes aur subsidies ko adjust karne ke baad.
- Difference from GDP: GDP = GVA + Taxes on Products - Subsidies on Products. Higher classes mein iski details padhenge.
- Historical Change in Sectors (Developed Countries):
- Initial Stages: Developed countries mein development ke shuruati stages mein primary sector most important tha production aur employment ke terms mein.
- Shift to Secondary: Farming methods improve hone aur agriculture prosper hone ke baad, log factories mein kaam karne lage. Secondary sector gradually most important ban gaya production aur employment mein.
- Shift to Tertiary: Last 100 years mein, developed countries mein tertiary sector most important ban gaya hai total production aur employment mein. Yeh general pattern hai.
Historical Shifts in Economic Sectors and Development Patterns
Economic sectors mein changes time ke saath hote hain, especially jab koi country develop karti hai. Yeh pattern developed countries mein clearly visible hai:
- Early Stages of Development:
- Primary sector dominant: Agriculture aur related activities economy ka major part thi.
- Most people primary sector mein employed the.
- Production mainly natural products ka hota tha.
- Example: India before independence, many African countries today.
- Industrial Revolution (Shift to Secondary Sector):
- New manufacturing methods aur factories ka emergence.
- Log farms se factories ki taraf shift hue.
- Secondary sector production aur employment mein dominant ho gaya.
- Goods saste rates par produce hone lage, jisse demand badhi.
- Example: European countries during 18th-19th century, India post-independence (to some extent).
- Post-Industrial Era (Shift to Tertiary Sector):
- Developed countries mein last 100 saalon mein tertiary sector ka rise.
- Service sector total production aur employment mein most important ban gaya.
- Reason: Increased demand for services (transport, communication, healthcare, education, IT).
- Example: USA, UK, Japan, Germany today.
- India ka Context:
- India mein bhi production mein shift hua hai, but employment mein similar shift nahi hua hai.
- Tertiary sector production mein sabse bada sector ban gaya hai (2017-18 data).
- Lekin, employment mein primary sector abhi bhi largest employer hai.
- Yeh ek major challenge hai Indian economy ke liye, jisse underemployment aur disguised unemployment ki problem create hoti hai.
Sectoral Contribution to GVA and Employment in India
India mein sectors ka contribution GVA (Gross Value Added) aur employment mein different trends show karta hai:
- GVA (Production) Mein Changes (1977-78 to 2017-18):
- Tertiary sector ka importance sabse zyada badha hai.
- 1977-78 mein primary sector largest producing sector tha.
- 2017-18 mein tertiary sector largest producing sector ban gaya, primary sector ko replace karke.
- Sabhi sectors mein production badha hai, but tertiary sector mein sabse zyada.
- Reasons for Rising Importance of Tertiary Sector:
- Basic Services: Har country ko basic services ki zaroorat hoti hai jaise hospitals, educational institutions, post offices, police, courts, transport, banks, insurance. Developing country mein government ki responsibility hoti hai yeh services provide karna.
- Development of Primary & Secondary Sectors: Agriculture aur industry ke development se transport, trade, storage jaise services ki demand badhti hai.
- Rising Income Levels: Income badhne par log eating out, tourism, shopping, private hospitals, private schools, professional training jaise services ki demand karte hain. Yeh trend cities mein zyada dikhta hai.
- Information & Communication Technology (ICT): Last decade mein ICT-based services (internet, software) bahut important aur essential ho gaye hain, aur inka production rapidly badh raha hai.
- Employment Mein Changes (1977-78 to 2017-18):
- Primary sector abhi bhi largest employer hai, despite its declining share in GVA.
- Secondary aur tertiary sectors mein production toh bahut badha, lekin employment utni speed se nahi badha.
- Industrial output 9 times badha, employment 3 times.
- Service sector production 14 times badha, employment 5 times.
- Result: More than half of workers primary sector mein hain, jo total GVA ka sirf 1/6th produce karte hain.
- Iska matlab hai ki primary sector mein underemployment ki problem hai.
Understanding Underemployment and Disguised Unemployment
Indian economy, especially agriculture mein, underemployment ek major issue hai:
- Underemployment (अल्प-रोजगार):
- Definition: Jab log apni full potential se kam kaam kar rahe hote hain ya unhe apni capacity ke according kaam nahi milta.
- Visibility: Yeh visible unemployment se different hai, jahan log bilkul kaam nahi karte. Underemployment mein log kaam karte hue dikhte hain, but unki productivity kam hoti hai.
- Example: Ek painter jo din mein sirf 2-3 ghante kaam karta hai kyunki usse zyada kaam nahi milta.
- Disguised Unemployment (प्रच्छन्न बेरोजगारी):
- Definition: Yeh underemployment ka hi ek form hai, jismein log apparently kaam kar rahe hote hain, but unki marginal productivity zero hoti hai. Matlab, agar unko kaam se hata bhi diya jaaye toh total production par koi asar nahi padega.
- Rural Areas (Agriculture):
- Classic Example: Laxmi, ek small farmer, jiske paas 2-hectare unirrigated land hai. Uski family ke 5 members saal bhar us plot par kaam karte hain.
- Actually, us plot par 2-3 logon ki hi zaroorat hai. Baaki 2-3 log disguisedly unemployed hain.
- Agar un 2-3 logon ko hata kar kahin aur kaam de diya jaaye, toh bhi khet ka production utna hi rahega, aur family ki total income badh jaayegi.
- "More people in agriculture than is necessary."
- Urban Areas (Service Sector):
- Urban areas mein bhi yeh dikhta hai, jaise casual workers (painters, plumbers, repair persons) jo daily employment search karte hain, but har din kaam nahi milta.
- Street vendors jo poora din spend karte hain but bahut kam earn karte hain, kyunki unke paas better opportunities nahi hain.
- Why is it a concern?
- Resources (human labour) ka under-utilisation hota hai.
- Individual aur family income kam rehti hai.
- Economy ki overall productivity kam hoti hai.
- Poverty aur inequality badhti hai.
Strategies for Employment Generation in India
India mein underemployment aur unemployment ko tackle karne ke liye various strategies hain:
- Rural Areas Mein Employment Generation:
- Irrigation Facilities Improve Karna:
- Government loans ya investment se wells, dams, canals construct kar sakti hai.
- Example: Laxmi ke khet mein well banne se woh second crop le sakti hai, jisse uski family ke 2 aur members ko 50 din ka kaam mil sakta hai.
- Isse agricultural sector mein hi employment badhega.
- Transportation aur Storage Facilities:
- Farmers ko apni produce market tak pahunchane ke liye better roads, transport (mini-trucks), cold storage, godowns ki zaroorat hoti hai.
- Government investment se yeh facilities provide kar sakti hai, jisse farmers ko better prices milenge aur transport/trade sector mein bhi jobs create honge.
- Cheap Agricultural Credit:
- Farmers ko seeds, fertilizers, equipment ke liye loans ki zaroorat hoti hai.
- Banks ko reasonable interest rates par credit provide karna chahiye, taaki farmers moneylenders ke high interest se bach sakein.
- Agro-based Industries Promote Karna:
- Semi-rural areas mein industries set up karna jo agricultural produce ko process karein.
- Example: Dal mills (arhar/chickpea ke liye), cold storage (potatoes/onions ke liye), honey collection centres, food processing units (vegetables, fruits).
- Isse farmers ko better prices milenge aur non-farm employment bhi create hoga.
- Education aur Health Sector Mein Investment:
- India ki young population ko educate aur healthy rakhna zaroori hai.
- More schools, teachers, buildings (Planning Commission/NITI Aayog ke estimate ke according 20 lakh jobs education sector mein create ho sakte hain).
- More doctors, nurses, health workers, especially rural areas mein, health situation improve karne ke liye.
- Tourism aur Regional Craft Industries:
- Har state/region mein tourism aur regional craft industries mein employment badhane ki potential hai.
- Proper planning aur government support se 35 lakh se zyada additional jobs tourism mein create ho sakte hain.
- Government Schemes (Short-term Measures):
- MGNREGA 2005 (Mahatma Gandhi National Rural Employment Guarantee Act 2005):
- Objective: Rural areas mein right to work implement karna.
- Guarantee: Government dwara 100 din ka employment guarantee un sabhi ko jo kaam karne ke capable aur needy hain.
- Provision: Agar government employment provide nahi kar paati, toh unemployment allowance degi.
- Work Type: Aise kaam ko preference di jaati hai jo future mein land se production badhane mein help karein (e.g., water harvesting, road construction).
- Successor: 2025 mein isko Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Viksit Bharat-G RAM G 2025) ne replace kiya.
Organised and Unorganised Sectors: Characteristics and Differences
Economy mein employment conditions ke basis par activities ko do sectors mein classify kiya jaata hai:
- Organised Sector (संगठित क्षेत्र):
- Definition: Enterprises ya work places jahan terms of employment regular hote hain aur logon ko assured work milta hai.
- Registration: Government dwara registered hote hain aur various laws (Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act) ko follow karna hota hai.
- Job Security: High job security hoti hai.
- Working Hours: Fixed working hours. Overtime karne par overtime pay milta hai.
- Benefits: Salary ke alawa paid leave, holidays, provident fund, gratuity, medical benefits milte hain. Retirement par pension bhi milti hai.
- Working Environment: Safe working environment aur basic facilities (drinking water) provided hoti hain.
- Example: Government employees, employees in large private companies, schools, hospitals.
- Unorganised Sector (असंगठित क्षेत्र):
- Definition: Small aur scattered units jo largely government ke control se bahar hote hain. Rules aur regulations hote toh hain, but follow nahi kiye jaate.
- Job Security: No job security. Logon ko bina kisi reason ke kaam se nikala ja sakta hai.
- Working Hours: Irregular aur long working hours. Overtime pay, paid leave, holidays, sickness leave jaise benefits nahi milte.
- Wages: Low-paid jobs aur wages regular nahi hote.
- Benefits: Koi additional benefits (PF, gratuity, medical) nahi milte.
- Working Environment: Often unsafe aur unhealthy working conditions.
- Example: Daily wage labourers (Kamal), small shopkeepers, street vendors, construction workers, domestic workers, rag pickers, small-scale industry workers.
- Self-employed: Bahut se log self-employed hote hain, jaise farmers jo apne khet par kaam karte hain ya small repair persons.
- Comparison Table:
| Feature | Organised Sector | Unorganised Sector | | :---------------- | :--------------------------------------------- | :--------------------------------------------------- | | Employment Terms | Regular, assured work | Irregular, no job security | | Registration | Government registered, follows laws | Largely outside government control, rules not followed | | Job Security | High | None | | Working Hours | Fixed, overtime pay | Long, irregular, no overtime pay | | Benefits | Paid leave, PF, gratuity, medical, pension | No paid leave, no PF, no medical, no pension | | Wages | Regular, often higher | Low, irregular | | Environment | Safe, basic facilities | Often unsafe, unhealthy |
Challenges and Protection for Unorganised Sector Workers
Unorganised sector ke workers ko kayi challenges face karne padte hain, aur unki protection zaroori hai:
- Challenges Faced by Unorganised Sector Workers:
- Low Wages: Bahut kam salary milti hai.
- Exploitation: Employers dwara exploit kiya jaata hai, fair wages nahi milte.
- No Job Security: Kabhi bhi kaam se nikala ja sakta hai.
- No Benefits: Paid leave, PF, medical benefits, pension jaise koi social security benefits nahi milte.
- Poor Working Conditions: Unsafe aur unhealthy environment mein kaam karna padta hai.
- Seasonal Unemployment: Kuch sectors mein seasonal kaam hota hai, jisse off-season mein kaam nahi milta.
- Forced Entry: Organised sector mein employment opportunities slow expand ho rahi hain, aur kayi organised sector enterprises bhi taxes evade karne aur labour laws avoid karne ke liye unorganised sector mein operate karte hain. Isse workers ko unorganised sector mein kaam karne ke liye majboor hona padta hai.
- Loss of Organised Jobs: 1990s se organised sector mein jobs lose karne wale workers bhi unorganised sector mein shift ho gaye hain.
- Vulnerable Groups in Unorganised Sector:
- Rural Areas:
- Landless agricultural labourers
- Small and marginal farmers (80% rural households)
- Sharecroppers
- Artisans (weavers, blacksmiths, carpenters, goldsmiths)
- Urban Areas:
- Workers in small-scale industry
- Casual workers (construction, trade, transport)
- Street vendors, head load workers, garment makers, rag pickers
- Social Discrimination: Majority of workers from Scheduled Castes (SCs), Scheduled Tribes (STs), aur Backward Communities unorganised sector mein hote hain, aur unhe social discrimination bhi face karna padta hai.
- Measures for Protection and Support:
- Rural Areas:
- Timely delivery of seeds, agricultural inputs (fertilizers, pesticides).
- Cheap credit (loans at low interest rates).
- Storage facilities aur marketing outlets provide karna.
- Government procurement of crops at fair prices.
- Urban Areas:
- Small-scale industries ko raw material procure karne aur output market karne mein government support.
- Casual workers ke liye social security schemes (health insurance, pension).
- Overall:
- Government ko labour laws ko strictly enforce karna chahiye, especially minimum wages aur working conditions ke regarding.
- Awareness campaigns chalana chahiye workers ke rights ke baare mein.
- Skill development programs provide karna chahiye taaki workers better jobs pa sakein.
- MGNREGA (ya Viksit Bharat-G RAM G) jaise schemes ko strengthen karna.
Public and Private Sectors: Classification by Ownership and Objectives
Economic activities ko ownership aur service delivery ki responsibility ke basis par bhi classify kiya jaata hai:
- Public Sector (सार्वजनिक क्षेत्र):
- Ownership: Government owns most of the assets.
- Service Delivery: Government provides all the services.
- Motive: Not just to earn profits, but to provide services for public welfare.
- Funding: Government raises money through taxes aur other ways to meet expenses.
- Examples: Indian Railways, Post Office, BSNL, Public Sector Banks (SBI), Government Hospitals, Government Schools.
- Private Sector (निजी क्षेत्र):
- Ownership: Ownership of assets aur delivery of services private individuals ya companies ke haath mein hoti hai.
- Motive: Primarily to earn profits.
- Funding: Private individuals ya companies apne funds invest karte hain.
- Payment: Services ke liye individuals aur companies ko pay karna padta hai.
- Examples: Tata Iron and Steel Company Limited (TISCO), Reliance Industries Limited (RIL), private hospitals, private schools, airlines (Jet Airways).
- Key Differences:
| Feature | Public Sector | Private Sector | | :---------------- | :----------------------------------------------- | :-------------------------------------------------- | | Ownership | Government | Private individuals/companies | | Motive | Public welfare, service | Profit earning | | Funding | Taxes, government revenue | Private investment, fees from users | | Service Cost | Often subsidized or free | Market rates, profit-driven | | Examples | Railways, Post Office, BSNL, Govt. Hospitals | TISCO, RIL, Private Hospitals, Airlines |
- Importance of Public Sector:
- Society ko aise services ki zaroorat hoti hai jo private sector reasonable cost par provide nahi karega.
- Kuch projects mein huge investment chahiye hota hai jo private sector ke capacity se bahar hota hai (e.g., roads, bridges, railways, dams, electricity generation).
- Private sector high rates charge karega, jisse sabko access nahi milega.
- Government ko heavy spending karni padti hai aur ensure karna padta hai ki yeh facilities sabke liye available hon.
- Government ko aise activities ko support karna padta hai jo private sector bina support ke continue nahi karega (e.g., electricity supply at affordable rates to industries).
- Government farmers aur consumers dono ko support karti hai (e.g., wheat aur rice fair price par buy karke ration shops ke through lower price par sell karna).
- Primary Responsibility: Health aur education facilities provide karna, safe drinking water, housing, food aur nutrition provide karna, especially poorest aur most ignored regions mein.
Role of Government in Providing Public Services and Goods
Government ka role economy mein bahut crucial hai, especially public services aur goods provide karne mein:
- Reasons for Government Intervention:
- High Investment, Low Returns: Kuch services (jaise roads, bridges, railways, ports, electricity generation, irrigation through dams) mein bahut zyada investment chahiye hota hai. Private sector itna bada investment nahi karega kyunki unka profit motive hota hai aur returns slow ya uncertain ho sakte hain.
- Affordability aur Accessibility: Private sector agar yeh services provide bhi karega toh high rates charge karega, jisse poor sections access nahi kar paayenge. Government ensure karti hai ki yeh services sabke liye affordable aur accessible hon.
- Support to Industries: Government ko kuch industries ko support karna padta hai. Example: Electricity production cost par sell karne se industries ka production cost badh jaayega, especially small-scale units band ho sakte hain. Government electricity ko subsidized rates par supply karti hai, cost ka part bear karti hai.
- Support to Farmers and Consumers: Government farmers se wheat aur rice fair price par buy karti hai, godowns mein store karti hai, aur ration shops ke through consumers ko lower price par sell karti hai. Isse farmers ko minimum support price milta hai aur consumers ko affordable food.
- Basic Human Development: Government ki primary responsibility hai health aur education facilities provide karna. India mein illiterate population ka size bada hai, aur malnutrition aur infant mortality rates bhi high hain. Government ko quality education, healthcare, safe drinking water, housing, food aur nutrition par spend karna chahiye.
- Regional Development: Government ko poorest aur most ignored regions par special attention dena chahiye, wahan spending badhakar development ensure karna chahiye.
- Examples of Government Activities:
- Infrastructure: Roads, railways, bridges, dams, power plants ka construction aur maintenance.
- Social Services: Public hospitals, government schools, primary health centres, anganwadis.
- Public Distribution System (PDS): Ration shops ke through food grains ka distribution.
- Law and Order: Police, courts, defence.
- Welfare Schemes: MGNREGA, pension schemes, housing for poor.
- Conclusion: Government ka role sirf law and order maintain karna nahi hai, balki economic development aur social welfare ensure karna bhi hai, especially un areas mein jahan private sector fail ho jaata hai ya unwilling hota hai.