Class 10 Economics

Sectors of The Indian Economy

NCERT Solution: Part -III

Give one example each of well managed company and poorly managed company from public sector and private sector from your area.


  • Public Sector
    • Well managed: NTPC (National Thermal Power Coropration
    • Poorly managed: Sugar Mill
  • Private Sector
    • Well managed: TISCO (Tatar Iron and Steel Company
    • Poorly managed: Bread Factory

Answer the following questions:

  • Service sector in India employs two different kinds of people. Who are these?
    Answer: There are formal workers and casual workers in the service sector. A worker who is utilizing his skills and intellectual capabilities and is usually directly employed is called a formal worker of the service sector. The worker which provides some support services which may not require intellectual capabilities is called a casual worker. Part-time workers also come under casual labour. For example; a push-cart owner who is delivering stationary to an accountancy firm is a casual worker.
  • Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
    Answer: This is true that workers are exploited in the unorganized sector. People who work in the unorganized sector get very low wages, and are forced to work for long hours. They seldom get leaves and holidays. They do not get the social security cover.
  • How are the activities in the economy classified on the basis of employment conditions?
    Answer: On the basis of employment conditions, the economy can be classified as organized and unorganized sector.
  • Compare the employment conditions prevailing in the organised and unorganized sectors.
Organised Sector Unorganised Sector
This sector carries all its activities through a system and as per the law of the land. System is not in place and most of the labour laws are violated.
Wages are as per government norms. Wages are below what is prescribed by the government.
Employees get all the social security as per the law. No social secutiry net is in place.
Job is secure. Job security is absent.

  • Explain the objective of implementing the NREGA 2005.
    Asnwer: NREGA 2005 was implemented with the prime objective of fulfilling the ‘Right to Work’. This progamme provides 100 days’ employment to one member from each family in rural areas. The programme is aimed at eradicating poverty in rural areas. This is also aimed at arresting the large scale migration which has been happening from BIMARU states of India to prosperous cities and states.
  • Using examples from your area compare and contrast that activities and functions of private and public sectors.
    Answer: Let us take example of any small city of India and let us try to understand the transport sector. The bus services for long distance travel are provided by the State Transport Corporation; which is a public sector organization. Additionally, many private operators also ply their buses. Workers who are working for the State Transport Corporation get all the employment related benefits, which are usually not available to those working for the private operators.
  • Give a few examples of public sector activities and explain why the government has taken them up.
Activities Reason for government control
Water supply Water is a basic necessity and water supply needs large investment. People need water at highly subsidised rates.
Railways Huge capital is required for laying railway lines and for procuring trains.
Roads Private operators may not be interested in building roads in rural areas.

  • Explain how public sector contributes to the economic development of a nation.
    Answer: Public sector has immense contribution in economic development of a nation. Public sector had provided initial boost to the economy when India was a very poor country. Public sector helped in building the basic industries and infrastructure and thus created an environment in which the private enterprise could thrive. Thus, the public sector has helped in a great way in India’s economic development.
  • The workers in the unorganised sector need protection on the following issues : wages, safety and health. Explain with examples.
    Answer: The government specifies the minimum wages from time to time. This is the minimum earning required for meeting a basic quality of life. Many workers in the unorganized sector are not getting even the minimum wages and hence are forced to live in penury. Safety at workplace is another important aspect. Lack of safety can lead to permanent disability or even death of a worker. A healthy worker shall be in a position to contribute to the economy. Hence, an employer should provide proper health benefits to its workers.
  • 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?
    Organised sector Unorganised sector Total
    Number of workers 400,000 1,100,000 1,500,000
    Total income (million rupees) 28,000 32,000 60,000

    It is clear that while a larger portion of workers is working in the unorganized sector, the per capita earning of those in the organized sector is more. 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.