The cultivation of cotton
- Takes place within a crop season, we depend mainly on natural factors like rainfall, sunshine and climate.
- an activity like dairy, we are dependent on the biological process of the animals and availability of fodder. The product here, milk, also is a natural product. Similarly, minerals and ores are also natural products.
- When we produce a good by exploiting natural resources, it is an activity of the primary sector, also called agriculture and related sector.
The secondary sector
- Covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. It is the next step after primary.
- product is not produced by nature but has to be made and therefore some process of manufacturing is essential.
- In a factory, a workshop or at home, also called as industrial sector
- activities that help in the development of the primary and secondary sectors.
- These activities, by themselves, do not produce a good but they are an aid or a support for the production process.
- For example, goods that are produced in the primary or secondary sector would need to be transported by trucks or trains and then sold in wholesale and retail shops also called the service sector.
- The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year and the sum of production in the three sectors gives what is called the Gross Domestic Product (GDP) of a country.
- GDP- the value of all final goods and services produced within a country during a particular year. GDP shows how big the economy is.
Why is the tertiary sector becoming so important in India?
There could be several reasons.
- First, in any country several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, etc. are required. These can be considered as basic services.
- In a developing country the government has to take responsibility for the provision of these services.
- Second, the development of agriculture and industry leads to the development of services such as transport, trade, storage and the like, as we have already seen.
- Greater the development of the primary and secondary sectors, more would be the demand for such services.
- Third, as income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools, professional training etc.
- You can see this change quite sharply in cities, especially in big cities.
- Fourth, over the past decade or so, certain new services such as those based on information and communication technology have become important and essential. The production of these services has been rising rapidly.
- Workers in agricultural sector are underemployed.
- You will see that everyone is working, none remains idle, but in actual fact their labour effort gets divided. Each one is doing some work but no one is fully employed. This is the situation of underemployment, where people are apparently working but all of them are made to work less than their potential.
- This kind of underemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed.
- Hence, it is also called disguised unemployment.
- India recently made a law implementing the Right to Work in 200 districts of India. It is called National Rural Employment Guarantee Act 2005 (NREGA 2005).
- Under NREGA 2005, all those who are able to, and are in need of, work are guaranteed 100 days of employment in a year by the government.
- If the government fails in its duty to provide employment, it will give unemployment allowances to the people.
- The types of work that would in future help to increase the production from land will be given preference under the Act.
- 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, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act etc.
- It is called organised because it has some formal processes and procedures. Some of these people may not be employed by anyone but may work on their own but they too have to register themselves with the government and follow the rules and regulations.
- Workers in the organised sector enjoy security of employment. They are expected to work only a fixed number of hours. If they work more, they have to be paid overtime by the employer. They also get several other benefits from the employers
The unorganized sector
- Is characterized by small and scattered units which are largely outside the control of the government.
- There are rules and regulations but these are not followed.
- Jobs here are low-paid and often not regular. There is no provision for overtime, paid leave, holidays, leave due to sickness etc. Employment is not secure. People can be asked to leave without any reason. When there is less work, such as during some seasons, some people may be asked to leave.
- A lot also depends on the whims of the employer.
- This sector includes a large number of people who are employed on their own doing small jobs such as selling on the street or doing repair work. Similarly, farmers work on their own and hire labourers as and when they require. In the urban areas, unorganized sector comprises mainly of workers in smallscale industry, casual workers in construction, trade and transport etc., and those who work as street vendors, head load workers, garment makers, rag pickers etc.
- Small-scale industry also needs government’s support for procuring raw material and marketing of output.
- The casual workers in both rural and urban areas need to be protected.
- In the public sector, the government owns most of the assets and provides all the services.
- In the private sector, ownership of assets and delivery of services is in the hands of private individuals or companies.
- Activities in the private sector are guided by the motive to earn profits. To get such services we have to pay money to these individuals and companies
- The purpose of the public sector is not just to earn profits. Governments raise money through taxes and other ways to meet expenses on the services rendered by it.