The sectors are classified into public and private sector on the basis of:

the nature of economic activity

GDP is the total value of _________ produced during a particular year.

all intermediate and final goods and services

all intermediate goods and services

Low prices for crops can be addressed by:

Government procurement of crops

Setting up cooperative marketing societies

Debt burden on farmers can be alleviated by:

Providing credit with low interest

Farmers compelled to sell their grains to local traders soon after harvest can be supported by:

Constructing storage facilities

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

Both skilled and unskilled workers

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

Organised sector has better pay

Organised sector has more benefits

Unorganised sector has flexible hours

Unorganised sector has no benefits

Using examples from your area, compare and contrast the activities and functions of private and public sectors.

Public sector has more employees

NCERT Solutions Class 10 Economics Chapter 2 – Sectors Of The Indian Economy

Class 10 Economics

Last Updated: 31 May 2026

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Chapter Introduction

Economic activities are classified into three sectors: primary (agriculture and natural resources), secondary (manufacturing), and tertiary (services). In India, most production now comes from the tertiary sector, but employment remains highest in the primary sector. Activities are also divided into organised and unorganised, and into public and private sectors, highlighting the need for protection and support for workers, especially in unorganised areas.

हिंदी में (Hindi)

आर्थिक गतिविधियाँ तीन क्षेत्रों में विभाजित होती हैं: प्राथमिक (कृषि और प्राकृतिक संसाधन), द्वितीयक (उद्योग), और तृतीयक (सेवाएँ)। भारत में उत्पादन का मुख्य हिस्सा तृतीयक क्षेत्र से आता है, जबकि रोजगार सबसे अधिक प्राथमिक क्षेत्र में है। गतिविधियाँ संगठित और असंगठित तथा सार्वजनिक और निजी क्षेत्रों में भी आती हैं, जिसमें असंगठित क्षेत्रों के श्रमिकों के लिए सुरक्षा और सहायता की आवश्यकता पर जोर दिया गया है।

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Important Points

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Practice MCQ Questions (28 questions)

Q1. Employment in the service sector _________ increased to the same extent as production.

Q2. Workers in the _________ sector do not produce goods.

Q3. Most of the workers in the _________ sector enjoy job security.

Q4. A _________ proportion of labourers in India are working in the unorganised sector.

Q5. Cotton is a _ product and cloth is a _ product.

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Tough Words (Glossary)

Primary sector

Meaning: Sector that uses natural resources directly (agriculture, fishing, forestry, mining).

अर्थ: प्राकृतिक संसाधनों का सीधा उपयोग करने वाला क्षेत्र (कृषि, मत्स्य, वानिकी, खनन)।

"Farming is part of the primary sector."

Secondary sector

Meaning: Sector that converts natural products into manufactured goods.

अर्थ: प्राकृतिक उत्पादों को विनिर्मित वस्तुओं में बदलने वाला क्षेत्र।

"A factory that makes sugar from sugarcane is in the secondary sector."

Tertiary sector

Meaning: Sector that provides services supporting production and daily life.

अर्थ: उत्पादन और दैनिक जीवन को सहारा देने वाली सेवाएँ प्रदान करने वाला क्षेत्र।

"Banking and transport are in the tertiary sector."

Manufacturing

Meaning: Process of making goods from raw materials.

अर्थ: कच्चे माल से वस्तुएँ बनाने की प्रक्रिया।

"Manufacturing turns cotton into cloth."

Services

Meaning: Intangible economic activities that do not produce goods.

अर्थ: ऐसी आर्थिक गतिविधियाँ जो वस्तुएँ नहीं बल्कि सेवाएँ देती हैं।

"Teaching and healthcare are services."

Final goods

Meaning: Goods ready for use by consumers; counted in GDP.

अर्थ: उपभोक्ताओं द्वारा उपयोग हेतु तैयार वस्तुएँ; GDP में गिनी जाती हैं।

"Biscuits sold to consumers are final goods."

Intermediate goods

Meaning: Goods used as inputs to produce final goods.

अर्थ: अंतिम वस्तुएँ बनाने के लिए उपयोग की जाने वाली वस्तुएँ।

"Flour used to make biscuits is an intermediate good."

Value of output

Meaning: Price multiplied by quantity of goods or services produced.

अर्थ: उत्पादित वस्तुओं/सेवाओं की मात्रा को मूल्य से गुणा करने पर प्राप्त मूल्य।

"We add value of output to compare sectors."

Gross Domestic Product (GDP)

Meaning: Value of all final goods and services produced in a country in a year.

अर्थ: एक वर्ष में देश में उत्पन्न सभी अंतिम वस्तुओं व सेवाओं का मूल्य।

"India’s GDP shows how big the economy is."

Gross Value Added (GVA)

Meaning: Contribution to the economy after adjusting for taxes and subsidies.

अर्थ: करों व अनुदानों को समायोजित करने के बाद अर्थव्यवस्था में योगदान।

"The report shows sector-wise GVA."

Employment

Meaning: Having paid work.

अर्थ: रोज़गार/नौकरी होना।

"Employment in services has grown."

Underemployment

Meaning: Situation where people work less than their potential or required time.

अर्थ: स्थिति जब लोग अपनी क्षमता/आवश्यक समय से कम काम करते हैं।

"Many farm workers face underemployment."

Disguised unemployment

Meaning: More workers employed than needed, so some add no extra output.

अर्थ: ज़रूरत से ज़्यादा लोग काम पर, जिससे कुछ का उत्पादन में योगदान नहीं।

"Five family members on a tiny farm is disguised unemployment."

Organised sector

Meaning: Jobs with regular terms, registered with government, following labour laws.

अर्थ: नियमित शर्तों वाला, सरकार में पंजीकृत और श्रम-कानून मानने वाला क्षेत्र।

"Kanta works in the organised sector."

Unorganised sector

Meaning: Small, scattered units with low, irregular pay and no job security.

अर्थ: छोटे-बिखरे इकाइयाँ जहाँ कम/अनियमित वेतन और नौकरी की सुरक्षा नहीं।

"Many street vendors are in the unorganised sector."

Public sector

Meaning: Sector where government owns assets and provides services.

अर्थ: जहाँ सरकार संपत्तियों की मालिक होती है और सेवाएँ देती है।

"Railways are in the public sector."

Private sector

Meaning: Sector owned and run by individuals or companies for profit.

अर्थ: निजी व्यक्तियों/कंपनियों द्वारा लाभ के लिए संचालित क्षेत्र।

"A private hospital is in the private sector."

Infrastructure

Meaning: Basic systems like roads, power, and communication needed for an economy.

अर्थ: सड़क, बिजली, संचार जैसी आधारभूत व्यवस्थाएँ।

"Better infrastructure supports industry."

Irrigation

Meaning: Supply of water to land or crops to help growth.

अर्थ: फसलों/भूमि को पानी की आपूर्ति।

"Canals improve irrigation for farms."

Credit

Meaning: Borrowed money that must be repaid, usually with interest.

अर्थ: उधार लिया गया धन जिसे आमतौर पर ब्याज सहित लौटाना होता है।

"Cheap credit helps small farmers buy seeds."

Interest rate

Meaning: Percentage charged on borrowed money.

अर्थ: उधार पर लिया जाने वाला प्रतिशत ब्याज।

"High interest rate hurts poor borrowers."

Subsidy

Meaning: Financial support from the government to reduce costs.

अर्थ: लागत घटाने हेतु सरकार द्वारा आर्थिक सहायता।

"Power subsidy lowers costs for small units."

Taxes

Meaning: Compulsory payments to the government.

अर्थ: सरकार को दिया जाने वाला अनिवार्य भुगतान (कर)।

"Indirect taxes affect prices of goods."

Ownership

Meaning: Legal right to possess and control property or assets.

अर्थ: संपत्ति/संसाधनों पर कानूनी स्वामित्व और नियंत्रण।

"Public ownership ensures universal access."

Assets

Meaning: Resources owned that have economic value.

अर्थ: आर्थिक मूल्य वाली संपत्तियाँ।

"The company’s assets include machines and buildings."

Productivity

Meaning: Output produced per unit of input (like labour).

अर्थ: इनपुट (जैसे श्रम) प्रति उत्पादित उत्पादन।

"Training raises worker productivity."

Wholesale

Meaning: Selling goods in large quantities to retailers.

अर्थ: खुदरा विक्रेताओं को बड़ी मात्रा में वस्तुओं की बिक्री।

"Traders buy rice at wholesale markets."

Retail

Meaning: Selling goods directly to consumers.

अर्थ: उपभोक्ताओं को सीधे वस्तुओं की बिक्री।

"Retail shops sell biscuits to families."

Distribution

Meaning: Process of delivering goods from producers to consumers.

अर्थ: उत्पादकों से उपभोक्ताओं तक वस्तुओं की पहुँच की प्रक्रिया।

"Cold chains improve food distribution."

Storage

Meaning: Keeping goods safely until they are needed.

अर्थ: वस्तुओं को सुरक्षित रखकर ज़रूरत तक संभालना।

"Warehouses provide grain storage."

Transport

Meaning: Movement of goods and people from one place to another.

अर्थ: वस्तुओं व लोगों का एक स्थान से दूसरे स्थान तक आवागमन।

"Trucks transport vegetables to cities."

Communication

Meaning: Exchange of information by phone, internet, post, etc.

अर्थ: सूचना का आदान-प्रदान (फ़ोन, इंटरनेट, डाक आदि से)।

"Good communication helps business grow."

Banking

Meaning: Accepting deposits and giving loans; financial services.

अर्थ: जमा स्वीकारना और ऋण देना; वित्तीय सेवाएँ।

"Banking supports trade and industry."

Basic services

Meaning: Essential public services like health, education, policing.

अर्थ: आवश्यक सार्वजनिक सेवाएँ जैसे स्वास्थ्य, शिक्षा, पुलिसिंग।

"The state must provide basic services."

Skilled workers

Meaning: Workers with special training or expertise.

अर्थ: विशेष प्रशिक्षण/कौशल वाले श्रमिक।

"IT firms hire skilled workers."

Casual workers

Meaning: Workers with daily/irregular jobs and no security.

अर्थ: दैनिक/अनियमित काम और बिना सुरक्षा वाले श्रमिक।

"Casual workers often lack benefits."

Job security

Meaning: Assurance of stable employment.

अर्थ: स्थिर रोजगार की गारंटी।

"Organised sector provides job security."

Overtime

Meaning: Work done beyond regular hours, paid extra.

अर्थ: नियमित समय से अधिक किया गया कार्य, जिसके लिए अतिरिक्त भुगतान होता है।

"Workers must be paid for overtime."

Provident fund

Meaning: Retirement savings scheme for employees.

अर्थ: कर्मचारियों के लिए सेवानिवृत्ति बचत योजना (भविष्य निधि)।

"Her salary includes provident fund."

Gratuity

Meaning: A lump-sum payment to employees on retirement.

अर्थ: सेवानिवृत्ति पर कर्मचारियों को एकमुश्त भुगतान (अनुग्रह)।

"He received gratuity after 30 years."

Minimum wage

Meaning: Lowest legal pay that employers must give.

अर्थ: न्यूनतम कानूनी वेतन जो नियोक्ता देना ही होगा।

"The law protects minimum wage."

Unemployment allowance

Meaning: Money given when guaranteed work is not provided.

अर्थ: गारंटीकृत काम न मिलने पर दिया जाने वाला भत्ता।

"MGNREGA offers unemployment allowance if work is not given."

MGNREGA

Meaning: Law that guarantees 100 days of rural employment a year.

अर्थ: क़ानून जो ग्रामीण क्षेत्रों में साल में 100 दिन का रोजगार सुनिश्चित करता है।

"MGNREGA created jobs in the village."

Sectoral shift

Meaning: Change in importance of sectors over time.

अर्थ: समय के साथ क्षेत्रों के महत्व में बदलाव।

"India has seen a sectoral shift toward services."

Contribution

Meaning: The part played by something in producing a result.

अर्थ: किसी परिणाम में दिया गया हिस्सा/योगदान।

"Services’ contribution to GVA is rising."

Final demand

Meaning: Demand by end-users/consumers for finished goods.

अर्थ: अंतिम उपभोक्ताओं द्वारा तैयार वस्तुओं की माँग।

"Retail sales reflect final demand."

Raw material

Meaning: Unprocessed natural input used to make a product.

अर्थ: अप्रक्रियोजित प्राकृतिक इनपुट जिससे उत्पाद बनता है।

"Cotton is the raw material for cloth."

Procurement

Meaning: Act of purchasing goods, often for business/government.

अर्थ: व्यापार/सरकार द्वारा वस्तुओं की खरीद की प्रक्रिया।

"The mill handles grain procurement."

Marketing

Meaning: Activities to promote and sell products.

अर्थ: उत्पादों के प्रचार और बिक्री की गतिविधियाँ।

"Cooperatives help in milk marketing."

Entrepreneur

Meaning: A person who starts and runs a business.

अर्थ: व्यक्ति जो व्यवसाय शुरू और संचालित करता है।

"An entrepreneur opened a dal mill."

Labour laws

Meaning: Rules protecting workers’ rights and conditions.

अर्थ: श्रमिक अधिकारों व शर्तों की रक्षा करने वाले नियम।

"Factories must follow labour laws."