Sectors Of Indian Economy

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Additional References

Useful websites

http://en.wikipedia.org/wiki/Tertiary_sector_of_the_economy

On insurance: http://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/Insurance_industry_Road_ahead_FINAL.pdf

On communications: http://en.wikipedia.org/wiki/Communications_in_India

On health and demographics: http://en.wikipedia.org/wiki/Demographics_of_India

On agriculture: http://www.worldbank.org/en/news/feature/2012/05/17/india-agriculture-issues-priorities

Teaching Outlines

Please describe the key ideas to be conveyed in this section. Also broken down in details by each idea

Key Idea 1 - Introduction to the three Sectors of the Indian Economy

What are the key ideas to be covered

Learning objectives

To understand the chain of production To understand their relation to daily life

Notes for teachers

In earlier classes, we studied about economic activities. An economic activity is one which is performed with the objective of satisfying his wants, using available resources. This section discusses how these activities form the basis for the main sectors of an economy – primary, secondary and tertiary. The primary sector produces natural goods which are then converted to manufactured goods by the secondary sector. The tertiary sector provides various supporting services to the primary and secondary sectors.

The differences between the sectors can be explained using an example. When you buy bread from your grocery store, have you wondered how it got there? Very simply, the process is as follows: a farmer grows wheat and sells his grains in the market. A company such as Modern Bread will buy the grains and convert them into flour in its factory. The flour is then combined with various other natural products such as eggs and yeast and made into bread. Modern Bread then packs the bread and distributes them to various grocery stores. People like you and me then buy the bread for consumption.

In the above illustration, we can distinguish the three sectors. The farmer who grows the wheat is part of the primary sector because he produces natural goods that are the basis for subsequent activities (primary goods). More examples for the primary sector are fisheries, dairy and forestry. Modern Bread is part of the secondary sector because it uses the natural goods to convert them into manufactured goods. All types of industries come under this sector. The grocery store owner is providing a service by selling various manufactured goods, therefore he is part of the tertiary sector. Most services such as banking and transport come under this category. The tertiary sector also supports the other two sectors. For example, trucks are used to transport the wheat to Modern Bread's factory and again to distribute the packets of bread to various grocery stores.

Activity No 1 - Classification of various professions into the three sectors

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Identify the local professions/occupations in your place of stay for this exercise. Can include following - Textile factory supervisor, Call center worker, Rice farmer, Fisherman, Gardener, Bank manager, Coal miner, Flower cultivator, Bee-keeper, Mason, Teacher, Chemical factory worker, postwoman, police inspector

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Activity No #

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• Estimated Time
• Materials/ Resources needed
• Prerequisites/Instructions, if any
• Multimedia resources
• Relevant local connections - people, places and materials
• Website interactives/ links
• Process
• What questions can you ask
• Assessments - incorporating elements of CCE
• Question Corner

Key Idea 2 - Primary Sector – agriculture and related sectors

What are the key ideas to be covered

Learning objectives

To understand the working of the agricultural sector in India To understand problems of the agricultural sector

Notes for teachers

Agriculture provided employment to 53.2% of India's population in 2009-10 and contributed to 17.2% of the GDP1. Of 297 million hectares of land in India, 60.5% was agricultural land (2009). Of the agricultural land, 87.8% is arable land i.e. land that can be used for growing crops. This gives a geographic sense of India's agriculture. Some other features of Indian agriculture are:

Subsistence agriculture: is farming for one's own consmuption. Farmers practice agriculture to feed their family and rarely have surplus left to sell in the market. Seasons: There are two main seasons in Indian agriculture – kharif and rabi. Kharif season lasts from April to September and rice is the season's main crop. Rabi is from October to March and wheat is the main crop. Monsoon-dependent: Indian agriculture is still largely dependent on the monsoons with only 35.2% of the total agricultural land being provided with irrigation, in 2010. Mechanization of agriculture: The Department of Agriculture and Cooperation has also initiated a National Mission on Agricultural Mechanisation to spread the benefits of mechanisation.

Green Revolution: This refers to almost a complete overhaul of agriculture in India in the '60s. It was based on using improved seeds of high yield variety, increased irrigation and increased use of chemical fertilizers. This helped India become self-sufficient in food grain production, and also allowed it to reduce its dependence on imports.

Issues faced by the Indian Agricultural Sector

Some of the problems of the Indian agricultural sector are discussed below. It is not an exhaustive list. Low productivity: Productivity per unit of land is low because of high pressure of population on agriculture, increasing fragmentation of land holdings, inadequate irrigation facilities, among other reasons. High cost of operations for farmers: Because of problems related to irrigation infrastructure, market infrastructure, and transport infrastructure, farmers' costs go up, and the problem is aggravated when they do not realize good prices for their crops. Inadequate non-farm employment: Given that the productivity of agriculture is low, farmers also suffer from a lack of non-farm employment opportunities. Poor distribution and marketing facilities: Agricultural marketing is cumbersome and costly resulting in inadequate marketing of agricultural goods.

Activity No #

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Activity No #

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• Assessments - incorporating elements of CCE
• Question Corner

Key Idea #

What are the key ideas to be covered

Activity No #

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• Estimated Time
• Materials/ Resources needed
• Prerequisites/Instructions, if any
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• Relevant local connections - people, places and materials
• Website interactives/ links
• Process
• What questions can you ask
• Assessments - incorporating elements of CCE
• Question Corner

Activity No #

Click to Comment

• Estimated Time
• Materials/ Resources needed
• Prerequisites/Instructions, if any
• Multimedia resources
• Relevant local connections - people, places and materials
• Website interactives/ links
• Process
• What questions can you ask
• Assessments - incorporating elements of CCE
• Question Corner

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