Sectors of the Indian Economy
Talking about the major sectors of the Indian Economy and their contribution to our country.
India is amongst one of the largest growing economies in the world. In recent decades, India has accomplished a lot of things. It has been into steady, stable, diverse, and adaptable processes of long-term growth. However, due to the Covid-19, an economic slowdown has been seen, which is creating questions in regards to the growth potential of India.
Human activities that generate income are known as economic activities. Economic activities lead to the production of goods and services, whereas sectors are the groups of economic activities which are categorised under certain metrics. Indian economy can be divided into three main sectors based on ownership, working condition and nature of the activities.
Under the nature of activities, we have primary, secondary, tertiary sector, quaternary activities and quinary activities. Based on working conditions we have an organised and unorganised sector. Based on assets ownership we have the public sector and private sector.
Based on the Nature of Activities
In the primary sector, all the activities are carried out through the direct use of natural resources. Examples of this sector majorly include agriculture, mining, fishing, forestry, dairy, etc. The primary sector provides a base for all the other natural products like agriculture, forest, fishing etc. People engaged in this sector are called Red Collar workers.
This industry comprises the production of cotton, sugar etc. It is the process of transforming raw material into valuable products. This sector produces finished goods other than raw materials. Secondary industry is referred to as the industry sector because it is linked to different kinds of industries. Secondary workers are referred to as Blue Collar workers.
The activities of this sector contribute to primary and secondary sector development. It involves both production and distribution. Economic activities in this sector do not produce goods of their own. Instead, they are an aid for production. This sector comprises goods transported by trucks or trains, banking, insurance, finance, etc. It adds value to a product in the secondary sector. This industry offers white-collar jobs.
This sector includes activities of the knowledge sector with a distinct categorization. The intellectual part of the economy is included in this sector. The demand for this sector has always been high. This category includes those working in an office, university, hospital etc.
This sector consists of decision-making authorities at the highest level. This includes the state government, decision-makers in trade, commerce and education. Professionals in this category are called gold collars. This sector has specialized and highly rewarded skills for top government officials, scientists, researchers, legal and financial consultants etc.
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Based on Working Conditions
The employment tenure of employees in this sector is fixed and constant. All employees are guaranteed employment and social security. This sector includes school and hospital. Not only employees get job security there are also specified hours for the work. There is overtime for employees if they work beyond the specified hours.
An unorganized employee is a domestic worker or an independent worker or a salaried worker in the unorganized sector. The sector is characterized by low incomes, unpredictable and irregular jobs and lack of security against law or trade unions.
Based on Assets Ownership
The Public Sector
The government owns maximum assets in this sector and this is that part of the economy which provides different government services. The aim of the Public Sector is not just to earn profits, Governments collect money via taxes and other means to meet expenses in connection with their services. There are three main Public Sector enterprises Maharatna, Navratna and Miniratna. Presently, there are 7 Maharatna, 16 Navratna and 71 Miniratna
In this sector, private individuals or companies hold the assets and render the services. It is sometimes called the citizen sector that is run by private persons or groups, usually as a means of making a profit. These enterprises only have the regulations of the government are not controlled completely by them. We have to pay such enterprises to avail their services. Public-Private Partnership is a contract between the government and the private sector for the allocation of public assets and public services.
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