Class 10 Economics

Sectors of The Indian Economy

In Text Questions

Part 2

Question 1: Why should we be worried about underemployment?

Answer: Underemployment is a dangerous trend for any society. A person is not underemployed because of choice but because of compulsion. Underemployment not only fails to realize the economic potential of the workforce but also of the whole society. It pulls down the economic performance of other workers. Finally, the society and the nation has to pay a heavy price for underemployment.

Answer the following questions:

Question 2: Why do you think NREGA 2005 is referred to as ‘Right to work’?

Answer: NREGA 2005 guarantees at least 100 days work for one member of each family. By doing so, this programme fulfills one of the fundamental rights as per the Constitution. Hence, this programme is aptly called as ‘Right to work’.

Question 3: Imagine that you are the village head. In that capacity suggest some activities that you think should be taken up under this Act that would also increase the income of people? Discuss.

Answer: Some of the activities which can be taken under this Act are; construction of road, construction of embankment on river, digging of ponds and wells, etc. These activities would provide double benefit. They will provide the much needed employment to the people and would help in development of village as well.

Question 4: How would income and employment increase if farmers were provided with irrigation and marketing facilities?

Answer: Irrigation facilities will help in increasing the farm output. Marketing facilities will help the farmers in selling their produce at fair prices. Thus, the income of farmers will increase. Improvement of irrigation facilities will be possible by construction of canals or digging of wells. New employment will be generated because of this. There will be increased demand for farm equipments and many people can earn by repairing those equipments. A market will help in opening up of new shops which would further boost employment.

Question 5: In what ways can employment be increased in urban areas?

Answer: Development of small scale and large scale industries can help in increasing employment in urban areas. Development of these industries will also result in development of the tertiary sector; which would further boost the employment generation. To support all these activities, there is also the need to develop the infrastructure; like power, telecommunication and roads.

Question 6: Look at the following examples. Which of these are unorganised sector activities?

Answer: A headload worker carrying a bag of cement on his back in a market, a daily wage labourer working under a contractor and a handloom weaver working in her house

Question 7: Talk to someone who has a regular job in the organised sector and another who works in the unorganized sector. Compare and contrast their working conditions in all aspects.


Worker in organised sectorWorker in unorganised sector
Gets good salary which is in tune with government rules and market rates.Gets poor salary which is less than what the government prescribes.
Works for 8 hours in a day and for 6 days in a week.Works for 10 to 12 hours in a day and sometimes even works on sundays and holidays.
Gets holidays and leaves.Gets fewer holidays and leaves.
Employer contributes towards provident fund.Employer does not cnotribute towards provident fund.
Gets salary hike on a regular basis.Gets salary hike once in a blue moon.

Answer the following questions:

Question 8: How would you distinguish between organised and unorganised sectors? Explain in your own words.


Organized SectorUnorganized Sector
This sector carries all its activities through a system and as per the law of the land.Systems are 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 security net is in place.
Job is secure.Job security is absent.

Question 9: The table below shows the estimated number of workers in India in the organised and unorganized sectors. Read the table carefully. Fill in the missing data and answer the questions that follow.

Workers in Different Sectors (millions)
Total in Percentage17.2682.74100

Question 10: What is the percentage of people in the unorganised sector in agriculture?

Answer: 99.56%

Question 11: Do you agree that agriculture is an unorganised sector activity? Why?

Answer: In case of agriculture, there is a blurred line between employers and employees. Let us assume that a farmer or a labour who works on other’s field is an employee. The worker; in this case; does not have the facility of fixed working hours. He may or may not be getting adequate wages. There is not social security net present. Hence, agriculture can be kept under unorganized sector.

Question 12: If we look at the country as a whole, we find that ———% of the workers in India are in the unorganised sector. Organised sector employment is available to only about ———% of the workers in India.

Answer: 82.74% , 17.26%