Sectors of the Indian Economy Question Answers Class 10 Economics Solutions

Class 10 Economics Solutions – ‘Sectors of the Indian Economy’: Solutions of textbook exercise as well as answers to the Intext (inside the chapter text) Questions and activities. All answers are as per the CBSE Board marking standards to make students prepare well to score full marks in the Board Exams.

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NCERT Textbook Exercise Solutions

1. Fill in the blanks using the correct option given in the bracket:

(i) Employment in the service sector _________ increased to the same extent as production. (has / has not)

(ii) Workers in the _________ sector do not produce goods. (tertiary / agricultural)

(iii) Most of the workers in the ________ sector enjoy job security. (organised / unorganised)

(iv) A _________ proportion of labourers in India are working in the unorganised sector. (large / small)

(v) Cotton is a _________ product and cloth is a product. natural /manufactured

(vi) The activities in primary, secondary and tertiary sectors are_________ [independent / interdependent)


(i) has not

(ii) tertiary

(iii) organized

(iv) large

(v) manufactured

(vi) interdependent

2. Choose the most appropriate answer.

(a) The sectors are classified into public and private sector on the basis of:
(i) employment conditions
(ii) the nature of economic activity
(iii) ownership of enterprises
(iv) number of workers employed in the enterprise

(b) Production of a commodity, mostly through the natural process, is an
activity in sector.
(i) primary
(ii) secondary
(iii) tertiary
(iv) information technology

(c) GDP is the total value of produced during a particular year.
(i) all goods and services
(ii) all final goods and services
(iii) all intermediate goods and services
(iv) all intermediate and final goods and services

(d) In terms of GDP the share of tertiary sector in 2013-14 is between ______ per cent.
(i) 20 to 30
(ii) 30 to 40
(iii) 50 to 60
(iv) 60 to 70


(i) (c) ownership of enterprises.
(ii) (a) Primary
(ii) (b) all final goods and services.
(iv) (d) 60 to 70

3. Match the Following:


1. (d), 2. (b), 3.(e), 4. (a), 5.(c)

4. Find the odd one out and say why.

(i) Tourist guide, dhobi, tailor, potter
(ii) Teacher, doctor, vegetable vendor, lawyer
(iii) Postman, cobbler, soldier, police constable
(iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio


(i) Potter, because he relates to the secondary sector.
(ii) Vegetable vendor, because he is unskilled while others are well skilled workers.
(iii) Cobbler, because he falls in unorganized sector.
(iv) Sahara Airlines because this is a private sector company



Place of workNature of employmentPercentage of working people
1. In offices and factories registered with the
2. Own shops, offices, clinics in market
places with formal license.
3. People working on the street, construction
workers domestic workers.
4. Working in small workshops usually not
registered with the government.

6. Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.

Ans. Yes, the classification of economic activities into primary, secondary and tertiary sector is useful. In primary sector we include all those activities which are undertaken by directly using natural resources. For example, cultivation of paddy, wheat etc.

In secondary sector all those activities are included which are engaged in manufacturing of some goods using natural products as raw material. For example, cloth from cotton.

In tertiary sector we include services which helps directly or indirectly in the development of secondary and primary sector. Ex. Banking, Insurance, Transport etc.

This criterion is useful as it makes us able to analyse the pattern of total production and employment in India.

7. For each of the sectors that we came across in this chapter why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.

Ans. For each of the sectors that we came across in this chapter our focus should be on employment and GDP because the growth of GDP and full employment are the common goals for any economy.

The other issues which should be examined are:

(i) Balanced regional development.
(ii) To remove poverty and unemployment
(iii) Modernisation of the technology
(iv) Equitable distribution of income and wealth.

8. Make a long list of all kinds of work that you find adults around you doing for a living. In what way can you classify them? Explain your choice.

Ans. We classify the different kinds of work in which people around us are engaged on the basis of:

  1. Nature of activity
  2. Employment condition
  3. Ownership of business units

On the Basis of Nature of Activity:

  1. Primary Sector: Agricultural Labourer, Small farmers, Honey collector etc.
  2. Secondary Sector: Industrial labour, Potter, Shoe maker, Weaver etc.
  3. Tertiary Sector: Teacher, Doctor, Postman, Lawyer, Tailor, Police constable, Clerk in a bank, Driver of local politician.

On the Basis of Employment Condition:

  1. Organized: Teacher in a Government School, Doctor in a Government Hospital, Government Lawyer, Clerk in bank, People working in a factory, Police constable etc.
  2. Unorganized: Agricultural labour, small scale farmer, Tailor, Potter, Cobbler, Driver of a local politician, Domestic servant, Hawker.

On the Basis of Ownership:

  1. Private: Agricultural labour, small scale farmers, small scale weavers, Potter, Teacher in a private school, Lawyer, People working in a factory, Shopkeeper etc.
  2. Public: Government Teacher, People engaged in Government Companies, Doctor in a Government Sector, Police constable, Postman.

Another Answer

9. How is the tertiary sector different from other sectors? Illustrate with a few examples.

Ans. Tertiary sector is different from other two sectors. This sector does not produce any goods by itself, but provide services which helps in the development of the primary and secondary sector. For e.g. Transport, Banking Insurance, Storage, Communication etc.

The goods that are produced in other sectors are transported from one place to another by tractors, trucks, trains etc. Goods are stored in the Godowns or cold storage to make them available at the time of need. Banking system provides credit facilities to the agriculturist or industrialist. Thus, this sector plays an important role in the growth and development of these sectors.

10. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.

Ans. Disguised unemployment is the situation in which people are apparently working but all of them are made to work less than their potential. In such a situation more people are engaged in a work than required.

Example from Rural Area: There are seven people in a family and all are engaged on their agricultural plot. If four of them are withdrawn from that agricultural plot there is no reduction in output. Then these four people are said to be disguisedly unemployed.

Example from Urban Area: This type of unemployment could be seen mostly in service sector. A family has all its member working in one shop or a small business, but it could actually be managed by few members.

11. Distinguish between open unemployment and disguised unemployment.

Ans. Difference between ‘Disguised Unemployment and Open Unemployment’:

12. “Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.

Ans. No, I do not agree with this. Tertiary sector plays a very important role in the development of the economy. Tertiary sector provides services like transport, banking, warehousing, education, health etc, which helps in the development and growth of the other two sectors by increasing the demand of goods and services.

Today, tertiary sector emerged as a large producing sector in India replacing the primary sector. Over the thirty years between 1973 and 2003, production in all the three sectors has increased, it has increased the most in the tertiary sector. The primary sector continues to be the largest employer but during 1973–2003, the rate of growth in employment in tertiary sector was nearly 300%.

13. Service sector in India employs two different kinds of people. Who are these?

Ans. The service sector in India employs the following two kinds of people: highly skilled and low skilled unorganised workforce.

(i) Service Sector in India employs highly skilled and educated people in multinational companies, public sector and several private enterprises. This sector enhances the economy of the country. They are an asset as they add up high income in the National Income of the country.

(ii) Low skilled and less educated people are also employed in service sector but most of them are uneducated. Therefore, they are working in unorganised sectors. They are employed as painters, plumbers, repair persons, etc. They are doing this work because they do not have better opportunities.

14. Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.

Ans. Yes, I agree with this view. The reasons are:

  • Jobs are poorly paid. The workers in the unorganised sectors are either illiterate, ignorant or unorganised.
  • Apart from the daily wages, they do not get other allowances.
  • There are no fixed working hours. The workers mainly work from 10-12 hours without being paid overtime.
  • The rules and regulations applied by the government to protect the labourers are not followed in their case.
  • As they are poor, they are mainly in under heavy debt.

Thus, it becomes easier for others to exploit them on lower wages.

15. How are the activities in the economy classified on the basis of employment conditions?

Ans. On the basis of employment conditions, the activities in the economy can be classified in two sectors i.e., organized sector and unorganized sector.

Organized Sector: This sector includes those enterprises which are registered by the government and they have to follow government rules and regulations. People working in this sector get regular monthly wages and extra payment for extra work. Example: Reliance Industries Ltd., Government School.

Unorganized Sector: This sector includes those enterprises which are not registered. There are rules and regulations but these are not followed. There is no fixed wages and no other benefits other than wages. It includes small and scattered units which are largely outside the control of the government, for example: Agricultural labour, casual workers, shopkeepers, etc.

16. Compare the employment conditions prevailing in the organised and unorganised sectors.

Ans. The employment conditions prevailing in the organised and unorganised sectors:

17. Explain the objective of implementing the NREGA 2005.

Ans. The objective of implementing NREGA 2005 (National Rural Employment Guarantee Act) is to provide the ‘Right to Work’. Its main features are:

(i) All those who are able to and are in need of work, have been guaranteed 100 days of employment in a year by the government.

(ii) One-third of the proposed jobs were reserved for women.

(iii) If government fails to provide employment, it will give unemployment allowances to the people.

(iv) Preference is given to those jobs, which in future would help to increase the production from land.

18. Using examples from your area compare and contrast that activities and function of private and public sectors.


19. Discuss and fill the following table giving one example each from your area.

Answer: Students can fill their own answers

Well managed organisationBadly managed organisation
Public SectorKendriya Vidyalaya PrayagrajPrimary Schools
Private SectorBal Bharti Public School, PrayagrajMuniciple Transport Services

20. Give a few examples of public sector activities and explain why the government has taken them up.

Ans. Some examples of public sector activities:

(i) Railways: The government has taken it up because it requires a huge sum of investment and have a long gestation period government has taken it up. To ensure easier and cheap availability of transportation.

(ii) All India Institute of Medical Science (AIIMS): to provide quality health and medical services at cheap rate the government has taken it up.

(iii) National Thermal Power Corporation (NTPC) Ltd.: Providing electricity at lower rate than the actual cost was the main objective of the government. This is done to protect and encourage the private sector especially small-scale industries.

21. Explain how public sector contributes to the economic development of a nation.

Ans. In the following ways public sector contributes to the economic development of a nation:

  • It promotes rapid economic development through creation and expansion of infrastructure. It creates employment opportunities.
  • It generates financial resources for development.
  • It ensures equality of income, wealth and thus, a balanced regional development.
  • It encourages development of small, medium and cottage industries.
  • It ensures easy availability of goods at moderate rates.
  • Contributes to community development, i.e., to the Human Development Index (HDI) via health and educational services.

22. The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples.


The unorganised sector is characterised by small and scattered units which are largely outside the control of the government. There is no provision for overtime, paid leave. Here employment is subject to high degree of insecurity. A large number of people doing small jobs such as selling on the street or doing repair work come under the unorganised sector.

Wages: They are low and irregular. There is also no provision for overtime, paid leave, etc.

Safety: Construction workers could get injured while working and they need to work under
safety conditions.

Health: Long working hours and unhygienic working environment affect the health of the
workers adversely.

23. A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000 worked in the unorganised sector. The total income of the city in this year (1997-1998) was Rs 60,000 million. Out of this Rs 32,000 million was generated in the organised sector. Present this data as a table. What kind of ways should be thought of for generating more employment in the city?

Ans. Table showing Income and Employment in the organized and unorganized Sector in Ahmedabad (1997–98)

SectorNo. of WorkersIncome (In Million ₹)

The following ways should be thought for generating more employment in the city.

(i) The government should encourage the entrepreneurs in the unorganized sector to change them into the organized sector. Moreover, government should introduce some incentives so that more industries could be opened up in the organized sector.

(ii) Labour intensive technique should be adopted in place of capital-intensive technique.

(iii) Encourage tourism, regional craft industry to create more jobs.

(iv) Emphasis should be laid on vocational education of the students, so that they could be self-employed.

(v) Development of small and cottage industries should be encouraged.

24. The following table gives the GDP in Rupees (Crores) by the three sectors:

(i) Calculate the share of the three sectors in GDP for 2000 and 2013.
(ii) Show the data as a bar diagram similar to Graph 2 in the chapter.
(iii) What conclusions can we draw from the bar graph?


(i) Share of the three sectors in GDP for 2000 = (52,000 + 48,500 + 1,33,500) = 2,34,000 crores

Share of primary sector
= 52,000/2,34,000 x 100 = 22.22%

Share or secondary sector
48,500/2,34,000 x 100 = 20.72%

Share of tertiary Sector
=1,33,500/2,34,000 x 100=57%

(ii) Presentation of data in Bar graph

(iii) Conclusions that can be drawn:

(a) Share of Primary sector has decreased from 2000 to 2013.
(b) Share of Secondary Sector has also decreased from 2000 to 2013.
(c) Share of Tertiary Sector has greatly increased from 2000 to 2013.

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