Role of Service Sector in Indian Economy

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Here you will find all the questions, solutions, answers, and notes of chapter 18: Role of Service Sector in Indian Economy of Social Science for class 10 students studying under Nagaland Board of School Education (NBSE). However, the study materials should be used only for references and nothing more. The notes can be modified/changed according to needs.

INTRODUCTION: In our everyday life, we find different people engaged in different types of activities to earn their living. People like farmers, casual workers, cobblers, shopkeepers, vegetable vendors. domestic servants, industrialists, teachers, doctors, lawyers, chartered accountants etc. perform different types of activities. All households are concerned with one or the other type of activity to earn wealth or money to satisfy their wants. All these activities are called economic activities. Economic activities produce different types of goods and services which satisfy people’s wants. The sum total of economic activities constitutes an economy.

Economic activities are carried on or are controlled by individuals, firms, private institutions and also by the government. Individuals and firms usually work for private gain or profit. But the governments have to consider not only the private gains of individuals or groups but also the welfare of society by taking the people as a whole.

A framework within which all economic activities of a country can be largely described is called the economy. In other words, an economy is the aggregate of economic activities in a country within which various types of goods and services are produced, distributed and consumed. It consists of all those individuals, households, fields, factories, mines, businesses, schools, colleges, offices, banks, hospitals, railways

I. Multiple Choice Questions

1. The sector that converts raw materials into goods is the

Answer: (b) secondary sector

2. The primary sector is related to

Answer: (d) All of these

3. ln which sector activities are not guided by the profit motive?

Answer: (a) Public sector

4. Services of teachers, doctors, lawyers etc. are included in the

Answer: (c) Tertiary sector

5. The manufacturing sector is associated with the

Answer: (b) secondary sector

II. Very Short Answer Questions

1. Give one reason for the rapid growth of the service sector in India.

Answer: One of the reasons for the rapid growth of the public sector in India is that the service sector provides the basic services for the development and provision of which government takes the responsibility

2. Mention one reason for the need of public sector in India.

Answer: The public sector is needed to develop the infrastructure of the country which is considered as the backbone of an economy.

3. What are secondary activities?

Answer: It covers activities relating to manufacturing and construction. It converts one type of product into another.

4. Name the sector where goods and products are produced by exploiting natural resources.

Answer: The sector where goods and products are produced by exploiting natural resources is the primary sector.

5. Why is the tertiary sector also called the service sector?

Answer: Since tertiary activities generate services rather than goods, the tertiary sector is also called the service sector.

6. Give the full form of MGNREGA.

Answer: Mahatma Gandhi National Rural Employment Guarantee Act.

III. Short Answer Questions

1. Give the classification of sectors on the basis of economic activities.

Answer: The classifications of sectors on the basis of economic activities are:

(I) Primary Sector: In the Primary sector, activities relating to land like, agriculture and allied activities are included.
(II) Secondary Sector: It covers activities relating to manufacturing and construction. It converts one type of product into another.
(III) Tertiary Sector: Tertiary activities themselves do not produce goods but they are a support for the production process.

2. What is meant by disguised unemployment? Give an example.

Answer: When a part of the labour force is either left without work or is working in a manner where worker productivity is zero, it is termed as disguised unemployment or underemployment.

3. Mention any one measure to remove unemployment in India.

Answer: In semi-rural areas, more industries and services can be promoted where a large number of PeoPle may be employed.

4. what is the public sector? Give examples of public sector units.

Answer: In the public sector, the government owns most of the assets. Industries owned by the government or its agencies are called Public Sector Undertakings (PSUs). E.g., Indian Railways

5. State any two initiative undertaken by the government in healthcare.

Answer: Two initiative undertaken by the government in healthcare are:

(a) Large scale vaccination programmes like that of Polio.
(b) Setting up new government hospitals and medical colleges.

IV. Long Answer Questions

1. Distinguish between organised and unorganised sectors of the Indian economy.

Answer: Organised sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work. In this sector, self-employed people also have to register themselves with the government.

An unorganised sector, on the other hand, includes those activities of people where no rules and regulations are followed. Example: landless agricultural labourers, small and marginal farmers etc.

2. What do you know about the primary sector? Explain briefly.

Answer: In the Primary sector, activities relating to land like, agriculture and allied activities such as forestry dairying, fishing, poultry farming, mining, stone quarrying etc. are included. In this sector, goods/products are produced by exploiting natural resources. For example, in the cultivation of wheat, we largely depend on natural factors like rainfall, sunshine and climate. Since most of the natural products are related to agriculture, dairying, fishing, forestry this sector is also called ‘agriculture and related sector’.

3. The tertiary sector is becoming the most important sector in India. Give reasons in support of the statement.

Answer: The tertiary sector has now become the most important sector in fast-developing India because of the following reasons:

(l) The service sector provides the basic services for the development and provision of which government takes responsibility.
(II) The development of agriculture and industry requires the development of services such as transport, storage, trade, means of communication etc.
(III) As income levels rise, certain sections of people start demanding more services like hotels, tourism, shopping, private schools, private hospitals etc.
(IV) Over the past decade, services based on information and technology are being increasingly demanded.
(V) The service sector employs many different kinds of people like small shopkeepers, repairpersons, transport persons etc.
(VI) Globalisation has also created new opportunities for companies providing services, particularly those involving IT.

4. Explain how public sector contributes to the economic development of a country.

Answer: In the public sector, the government owns most of the assets. Industries owned by the government or its agencies are called Public Sector Undertakings (PSUs). Indian Railways, Post Office, Indian Oil Corporation Ltd. (IOCL), Steel Authority of India Ltd (SAIL) are some of the examples of PSUs. The purpose of the public sector is not to earn profits. There are a number of activities which are required by society as a whole but the private sector does not like to take initiative because of the low rate of return. And some of these activities need a large sum of money which is beyond the capacity of the private sector. Even if they provide these things they would charge a high price for their use. Construction of roads, bridges, railways, harbours, generating electricity, providing irrigation through dams etc. are examples of such activities. Thus, governments have to undertake such heavy spending and ensure that these facilities are available for everyone in the society which is vital for the economic growth of a country as infrastructure is the backbone of any economy.

5. Explain the relative importance of the primary, secondary and tertiary sectors in providing employment.

Answer: Although, the contribution of the primary sector in GDP has declined significantly, the proportion of the workforce that works in this sector has not fallen much. It has marginally declined from 72%o in 1972-73 to about 49% in 2013-14. It continued to be the largest employer even in the year 2000. On the other hand, the service sector which accounts for more than 50oh of GDP employs only about 26%o of the workforce. The contribution of the secondary sector both in terms of production and employment did not change much because enough jobs were not created in the secondary and tertiary sectors.

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