CBSE Class 10 SST: Sectors of Economy — Economics Notes 2026

Three Sectors of Economy

• Primary sector: uses natural resources; agriculture, fishing, mining, forestry; 'nature-based'
• Secondary sector: transforms raw materials; manufacturing, electricity, construction; 'industry'
• Tertiary (service) sector: facilitates other sectors; banking, transport, education, health, trade

GDP and Sector Contribution

• GDP: total monetary value of final goods and services produced in a country in a year
• India GDP sector shares (approx. 2023): Agriculture 15%, Industry 25%, Services 60%
• Sectoral shift: as countries develop, share of primary sector in GDP decreases (structural transformation)

Employment and Structural Transformation

• India: 45%+ of workers in primary sector but only 15% of GDP; low productivity in agriculture
• Disguised unemployment: extra workers in agriculture with zero marginal productivity (e.g., 5 people doing 3 people's work)
• Solution: diversify rural economy; MNREGA (100 days guaranteed work) provides safety net

Organised vs. Unorganised Sector

• Organised: registered firms; follow labour laws; employees get PF, ESI, leave pay; majority of secondary and tertiary
• Unorganised: small enterprises; street vendors, construction workers, domestic workers; no job security; 90%+ of Indian workforce
• Gap between organised and unorganised: organised workers earn 3–5× more; unorganised workers vulnerable to exploitation

MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)

• Passed 2005; guarantees 100 days of unskilled manual work per year to rural households
• Wages: ₹200–300/day depending on state; if no work provided, unemployment allowance paid
• Impact: reduced migration, empowered women (33% reservation), created durable assets (roads, ponds, canals)

Public vs. Private Sector

• Public sector: owned by government; Railway, BSNL, BHEL, ONGC; objective = public welfare
• Private sector: owned by individuals/companies; Tata, Reliance, HDFC; objective = profit
• Mixed economy: India has both; public sector provides where private sector won't (basic infrastructure, loss-making routes)

CBSE Exam Tips

• Distinguish organised vs unorganised sector: most frequently asked (3 marks)
• MNREGA features: purpose, days, who benefits, government objective; 3-mark question
• GDP calculation concept: value added method; CBSE not expected to calculate but understand the concept