CBSE Class 10 Social Science Sectors Of Indian Economy Notes Set A

Download CBSE Class 10 Social Science Sectors Of Indian Economy Notes Set B in PDF format. All Revision notes for Class 10 Economics have been designed as per the latest syllabus and updated chapters given in your textbook for Economics in Standard 10. Our teachers have designed these concept notes for the benefit of Grade 10 students. You should use these chapter wise notes for revision on daily basis. These study notes can also be used for learning each chapter and its important and difficult topics or revision just before your exams to help you get better scores in upcoming examinations, You can also use Printable notes for Class 10 Economics for faster revision of difficult topics and get higher rank. After reading these notes also refer to MCQ questions for Class 10 Economics given our website

Sectors Of Indian Economy Class 10 Economics Revision Notes

Class 10 Economics students should refer to the following concepts and notes for Sectors Of Indian Economy in standard 10. These exam notes for Grade 10 Economics will be very useful for upcoming class tests and examinations and help you to score good marks

Sectors Of Indian Economy Notes Class 10 Economics





Q1 Mention the 3 different classifications on the basis of which we divide the sectors Indian economy.

A1 a) Primary, Secondary & Tertiary sector

b) Private & Public sector

c) Organized & unorganized sector

Q2 Classify industries on the basis of their economic activities with examples


This sector consists of activities that are undertaken by directly using the natural resources. This sector is called primary as it forms the base for all other products to be subsequently produced. Example: In activities like dairy, we are dependent on the biological process of the animals & availability of fodder; cultivation of co on which depends on the availability natural factors like rainfall, sunshine etc.


It covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. The product is not produced by nature but has to be made & thus some process of manufacturing is important. This could be done in a factory, workshop or at home. Since this sector gradually become associated with the different kinds of industries, it is also called industrial sector. Example: Using sugarcane as a raw material, we make sugar or gur; using wood to make furniture etc.


This sector consists of activities that do not produce goods but they are an aid in the production process. Since these activities generate services than goods, it is also called service sector. Example: Goods produced in primary or secondary need to be transported by trains or trucks to be able to reach the final consumers; making use of banking service to borrow loan from banks to help production & trade.

Q3 Why the Primary sector is also called ‘agriculture & related sector’?

A3 Since most of the natural products we get are from agriculture, dairy, fishing, forestry, this sector is also called ‘agriculture & related sector’.

Q4 What changes have been bought about in the primary, secondary & tertiary sectors over a period of me?


a) Noted from the histories of many (now developed) countries, primary sector was the most important sector of economic activity at initial stages of development.

b) As the methods of farming changed & agricultural sector began to prosper, it produced much more food than before.

c) Many people could now take up other activities. Buying & selling activities increased many times.

d) However, at this stage most of the goods produced were natural products from primary sector & most people were also employed in this sector.


a) Over a long me & specially because new methods of manufacturing were introduced, factories came up & started expanding

b) Those people who had earlier worked on farms now began to work in factories in large numbers. People began to use goods that were produced in factories at cheaper rates.

c) This sector gradually became important in the total production & employment.

d) Hence, over time, a shift had taken place. This means that the importance of sectors had changed.


a) In the past 100 years, there has been a further shift from secondary to tertiary sector in developed countries.

b) The service sector has become very important in terms of the total production.

c) Most of the working people are also employed in the service sector. This is the general pattern observed in developed countries.

Q5 “Tertiary sector has emerged as the largest producing sector in India replacing the primary sector”. Explain why is the tertiary sector becoming so important in India?
A5 Following factors can be attributed for the rising importance of the tertiary sector:
First, in any country, several services like hospitals, banks, insurance, police station, courts etc are required.
These can be said as basic services which are the responsibility of government in a developing country.
Second, the development of agriculture & industry leads to the development of services such as transport, trade, storage & the like. Thus, greater the development of primary & secondary sectors more would be the demand of such services.
Third, as income level rise, certain sections of people start demanding more services like eating out, shopping, private schools or hospitals etc.
Fourth, over the past decade or so, certain new services like those based on information & communication technology have become important. The production of these services has been rising rapidly.

Q6 “Not the en re service sector is growing equally well.” Do you agree with this statement? Give reason(s) for your answer.
A6 Yes, not the en re service sector is growing equally well. This is because the service sector in India employs different kinds of people. At the one end, there are a limited number of services that employ highly skilled & educated workers. At the other end, there are a very large number of workers engaged in services like small shopkeepers, repair persons, transport persons etc these people barely manage to earn a living & yet they perform these services as no alternative work is available to them. Hence, only a part of this sector is growing in importance.

Q7 How do we calculate the GDP of a country?
A7 GDP is the Gross Domes c Product which is calculated by having the sum of production in the 3 sectors.
GDP is the value of all final goods & services produced within a country during a particular year. In India, the task of measuring GDP is undertaken by central ministry which collects information relating to total volume of goods & services & their prices & then estimates the GDP.

Q8 Why are only ‘final goods & services’ counted in the GDP? Explain with the help of an example.
A8 This is because the value of final goods already includes the value of all intermediate goods that are used in making the final good.
For example, a farmer sells wheat to a flour mill for Rs 8 per Kg. The flour mill grinds the wheat & sells the flour to a biscuit company for Rs 10 per Kg. The biscuits company in turn uses flour & other things to make biscuit & sells it in the market for Rs 60. Here, the value of Rs 60 for biscuit (final good) already includes the value of flour (Rs 10).

Q9 “More than half of the workers in the country are working in the primary sector, mainly in agriculture, produce only a quarter of GDP.” Does this statement mean that the workers in agriculture are not producing as much as they could? Give reasons.
A9 It is not that the workers in agriculture are not producing as much as they could but the real problem is that there are more people in agriculture than is necessary. So, even if a few people are pulled out from here, production will not be affected. Thus, workers in agriculture sector are said to be underemployed. Also, the rate at which these primary products are sold in the market is less because of which their contribution to the GDP is also less.

Q10 Why is the problem of underemployment hidden in nature?
A10 The problem of underemployment is hidden in nature as people are apparently working but all of them are made to work less than their potential or some people are even made to work more but are not paid accordingly & are thereby exploited. This is in contrast to someone who does not have a job & is clearly visible as unemployed.

Q11 Does the problem of underemployment happen in others sectors also, apart from agriculture? Substantiate with example(s).
A11 Yes, the problem of disguised unemployment happens in other sectors as well. For example, there are thousands of casual workers in the service sector in the urban area who search for daily employment. They are employed as painter, plumber etc. Many of them do not find work every day. Similarly, we see other people in the service sector where they may spend the whole day but earn very little.

Q12 Why do you think NREGA is referred to as ‘Right to work’?
A12 The central government in India recently made a law implementing the Right to Work in 200 districts of India. It is called National Rural Employment Guarantee Act 2005. It is referred to as ‘Right to Work’ as all those who are able to & are in need of work have been guaranteed 100 days of employment in a year by the govt. if the govt fails in its duty to provide employment, it will give unemployment allowance to the people.

Q13 What is an organized sector of economy?
A13 Organized sector covers those enterprises or places of work where the terms of employment are regular & therefore people have assured work.

Q14 Why is the organized sector of economy so called?
A14 This sector is called Organized because it has some formal processes & procedures. They are registered by the government & have to follow its rules & regulations which are given in various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act etc.

Q15 What are the benefits that are enjoyed by the people working in the organized sector?
A15 a) Workers in this sector enjoy security of employment
b) They are expected to work only a fixed number of hours & if they work more, they are paid over me by the employer.
c) They enjoy benefits like paid leaves, payment during holidays, provident fund, gratuity etc
d) They are supposed to get medical benefits & under the laws, the factory manager has to ensure facilities like drinking water & safe working environment.
e) On retirement, the workers are even entitled to pensions as well.

Q16 What is unorganized sector of economy?
A16 This sector is characterized by small & scattered units which are largely outside the control of the govt.There are rules & regulations but which are not followed. Jobs here are low paid & even not regular.

Q17 What are the disadvantages that people have to suffer in the Unorganized Sector?
A17 a) There is no job security as a lot depends on the whims of the employer & some people may be asked to leave.
b) There is no provision for over me, paid leave, holidays, leave due to sickness etc.

Q18 In the rural areas, who are the vulnerable people in the unorganized sector who need protection by the government?
A18 In the rural areas, the unorganized sector mostly comprises of landless agricultural laborers, small & marginal farmers, sharecroppers & artisans (such as weavers, carpenters, goldsmiths etc). Nearly 80% of the rural household in India is in small & marginal farmer category. These farmers need to be supported through adequate facilities for timely delivery of seeds, agricultural inputs, credit, storage facility & marketing outlets.

Q19 In the urban areas, who are the vulnerable people in the unorganized sector who need protection by the government?
A19 In the urban areas, unorganized sector comprises mainly of the workers in small scale industries, casual workers in construction, trade & transport etc & those who work as street vendors, head load porters, rag pickers etc. Small scale industries also need government’s support for processing raw material & for marketing the output. Similarly, the casual workers also need protection in their jobs & wages.

Q20 How do we classify the sectors of Indian economy in terms of ownership?
A20 In terms of ownership, we can classify the sectors as Private & Public sectors. In the Public sector, govt owns most of the assets & provides all the services. Example: Railways or post office. In Private sector, ownership of assets & delivery of services is in the hands of private individuals or companies. Example: Reliance Industries Ltd (RIL), Tata Iron & Steel Company Ltd (TISCO).


Q21 Why do we need to have Public sector in a society when we have the Private sector providing quality services? Give reasons for your answer.
A21 We need to have Public Sector for the following reasons:
a) Advances in a private sector are guided by the motive to earn profits. However, the purpose of the public sector is not to earn profits but to provide services to the people.
b) There are several things needed by the society as a whole but which the private sector will not provide at a reasonable cost as these need spending large sums of money which is beyond the capacity of the private sector.
c) Also, collecting money from thousands of people who use these facilities is not easy. Even if the private sector provides these things, they would charge a high rate for their use.
Thus, governments have to undertake such heavy spending & ensure these facilities are available to all.


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