NCERT Class 10 Economics Chapter 2: Sectors of Indian Economy Complete Notes Part 3 (For CBSE, ICSE, IAS, NET, NRA 2022)

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Sectors of Indian Economy

Organized Sector

  • Formal sector
  • Assured employment
  • Follow rules and regulations like Factories Act, Minimum Wages Act
  • Must be registered
  • Job security
  • Work only for fixed hours
  • Get paid leave, payment during holidays, PF, gratuity etc.
  • Get medical benefits
  • Get retirement benefits

We classified sectors, we have already classified one way there we talked about the primary, secondary and tertiary sector based on the type of activities. Then based on the formal structure or the structure we have two type of sector that is the organized sector and the unorganized sector.

Organized sector is much more formal so there is assured employment it come under the regulation of factories act, minimum wages act, the organization must be registered again since a kind of set organization you would have more job security, you would have to work for fixed hours, there would be paid leaves, holidays, vacations, and all the benefits that would be given to the employee, medical benefits and retirement benefit are also part of organized sector.

Unorganized Sector

  • Small and scattered
  • No government control
  • Low paid & irregular jobs
  • Less work
  • Seasonal employment

When we come to unorganized sector, it is more scattered, you do not have a whole day guarantee or full day employment. Again if you have full day employment, there is no guarantee that you would have the employment every day, every next day, so it՚s kind of very seasonal or a fluctuating employment that one has. So there are irregularities in the job structure and unorganized sector is paid very less as compared to the organized sector.

Protecting Workers of Unorganized Sector

  • In 1990՚s many organized workers lost jobs
  • Organized shift to unorganized to evade taxes with low salary
  • 80 % rural households are small and marginal farmers
  • Casual workers in construction, trade
  • Street vendors, rag pickers
  • Majority from SC/ST/OBCs in unorganized sector
  • Providing social security

Now how can you protect the workers of unorganized sector first of all the most important thing is they should not have the fear of losing the job?

So there is job security that is essential element for protecting the unorganized sector, some of the organized sector are shifting towards unorganized sectors in order to evade tax and that should be curbed. 80 % of the farmers are small and marginal farmers so you have kind of huge number of landless laborers that are employed in on those patches of land. So there should be a kind of land consolidation acts that should move forward that would help in kind of proper organization or cooperative farming that could be again a solution for getting a more organized framework for agriculture laborers, street vendors, rag pickers, casual workers and construction and trade are all part of unorganized sectors.

Majority of the people from SC/ST/OBCs in unorganized sector are there. All these could be called only by government effort because government is the sole motive or the move of changes specifically for the unorganized.

Sectors by Ownership

  • Public: Government owns assets and provides services (Railways, Post Office) – money from taxes
  • Private: Ownership by private company (TISCO, Reliance) – profit motive
  • Government supports – for producing electricity at reasonable rates for industries; health; education
  • Fair price – PDS – Ration shops
  • Safe drinking water, housing, nutrition – Govt.

The final classification of sector based on ownership we can say there can be either public sector activities or private sector. Private sector activities are controlled by private companies like Tata, reliance etc. However, when it comes to public sector companies they are under the government influence, so all the companies like SAIL, the steel authority then, you have post offices, railways are part of the public system. Only way the money is generated is through taxes, so government finally is getting money from the taxes and it is using the same money for the overall development of the nation.

Now how does the government support the farmers we have already covered this in class 9, we have talked about the public distribution system, the buffer stocks just a quick recap of those government can support for cheap education, free education , for health facilities, for banking facilities, for subsidized electricity to industrial setups. Besides this government supports the agricultural labors by providing the minimum support price for their crop even if there is a kind of drought or famine situation that occurs the farmer would get a minimum wage plans and that would be the minimum support price that the FCI provides to the farmers. Again the people who are living below poverty line are provided with subsidized food grains and these subsidized food grains are provided through the various fair shops or we call as the fair price shops or the ration shops and this occurs by means of the public distribution system.

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