Sectors of the Indian Economy

This chapter classifies economic activities into the primary, secondary and tertiary sectors on the basis of the nature of activity, and shows how the three sectors are interdependent. It explains how production is measured using the value of final goods and services, the meaning of GDP and GVA, and why only final goods are counted. It traces the historical shift of sectors from primary to secondary to tertiary, and the rising importance of the tertiary sector in India, where by 2017-18 services became the largest producing sector. A central theme is the mismatch between production and employment: the primary sector remains the largest employer despite producing little, giving rise to underemployment and disguised unemployment, and the chapter discusses ways to create more employment including MGNREGA. It closes with two further classifications — organised versus unorganised sectors and public versus private sectors — and the role of the government. A high-scoring, application-rich chapter of the Board syllabus.