Class 10 ‘Sectors of Indian Economy’ Chapter PYQS Important Questions

Learn here from Previous Years; Questions (PYQs) based on the CBSE Class 10 NCERT Economics textbook Chapter “Sectors of Indian Economy”. These questions help in assessing the trend and pattern of questions asked in Class 10 Board Social Science exams. Click here for more study resources in SST Clas 10.

Very Short Answer Type questions:

1. Why is the tertiary sector becoming so important in India? Explain the main reason. [CBSE 2020]
2. (i) How is GDP calculated? (ii) What does MGNREGA mean? [2020]
3. Explain the meaning of Disguised Unemployment. [2020] 
4. Explain the main advantage of organised sector in respect of employment. [2020] 
5. (i) What is the main purpose of the Public Sector? (ii) How is Public Sector different from Private sector?  [2020]
6. Distinguish between ‘primary’ and ‘secondary’ sectors. [2019] 
7. Suggest any one measure for the development of any activity of ‘Secondary Sector’.  [2019]

Answers:

Q.1 Why is the tertiary sector becoming so important in India? Explain the main reason.

Ans:
The tertiary sector is becoming important in India because:

1. Support for Other Sectors: It provides essential services like transport, communication, and banking that support the primary and secondary sectors.
2. Growing Demand: With urbanisation and higher incomes, the demand for services like healthcare, education, and tourism has increased.
3. IT and Communication Growth: India’s IT and communication services have expanded significantly, contributing to the sector’s importance.

Q.2 (i) How is GDP calculated?

Ans:
GDP (Gross Domestic Product) is calculated by summing up the value of all final goods and services produced in each sector (primary, secondary, and tertiary) of an economy during a financial year.

(ii) What does MGNREGA mean?

Ans:
MGNREGA stands for the Mahatma Gandhi National Rural Employment Guarantee Act, 2005. It guarantees 100 days of wage employment annually to rural households willing to do unskilled manual work.

Q.3 Explain the meaning of Disguised Unemployment.

Ans:
Disguised unemployment occurs when more people are engaged in a task than required, and their productivity is minimal or redundant. For example: In agriculture, a small farm may employ many family members but removing a few would not affect output.

Q.4 Explain the main advantage of the organised sector in respect of employment.

Ans:
The main advantage of the organised sector is job security. Workers in this sector have regular employment, receive fixed wages, and enjoy benefits like paid leave, health insurance, pensions, and retirement benefits, ensuring economic stability.

Q.5 (i) What is the main purpose of the Public sector?

Ans:
The main purpose of the public sector is social welfare. It focuses on providing essential services like healthcare, education, and infrastructure development at affordable costs rather than prioritising profit.

(ii) How is Public sector different from Private sector?

Ans:

Q.6 Distinguish between ‘primary’ and ‘secondary’ sectors.

Ans:

Q.7 Suggest any one measure for the development of any activity of the ‘Secondary Sector’.

Ans:
One measure for the development of the secondary sector is to provide incentives for small-scale industries, such as low-interest loans, subsidies for equipment, and improved infrastructure like power and transportation facilities.

Short Answer Type Questions:

1. Explain any two efforts taken by the Government of India to modernise agriculture. [Outside Delhi (OD), 2023]
2. In what ways Government can increase employment in the rural sector? R [CBSE, Specimen 2022-2023]
3.  “Efficient means of transport are prerequisites for fast development of the country.” Support the statement with examples. [Delhi 2020] 
4. Why is organized sector preferred by the employees? Explain. [OD 2020]
5. ‘‘There is need for protection and support for the workers in the unorganised sector.’’ Evaluate this statement. [CBSE 2020]
6. ‘‘Activities in the private sector are guided by the main motive to earn profit.’’ Evaluate this statement. [2020]
7.  “The pace of change in the communication sector has been rapid in modern times.” Support the statement with examples. [OD 2020]
8. “Tertiary sector activities help in the development of the primary and secondary sectors.” Evaluate the statement. [2020]
9. “ ‘Primary sector’ was the most important sector of economic activity at initial stages of development.” Evaluate the statement. [2020]
10. Distinguish between ‘Organised’ and ‘Unorganised Sector’. [2020]
11. Distinguish between primary and tertiary sectors. [2019]
12. Distinguish the service conditions of organised sector with that of unorganized sector. [Delhi 2018]
13. How does public sector contribute to the economic development of the nation ? Explain.[Compartment, 2018]

Answers:

Q.1 Explain any two efforts taken by the Government of India to modernise agriculture.

Ans:

1. Introduction of HYV Seeds and Irrigation Facilities: The government has promoted the use of high-yielding variety (HYV) seeds and built extensive irrigation facilities to enhance productivity.
2. Mechanisation of Farming: Distribution of tractors and other farm machinery under subsidy schemes has been encouraged to reduce manual labour and increase efficiency in farming.

Q.2 In what ways can the Government increase employment in the rural sector?

Ans:

1. Infrastructure Development: Building dams and canals for irrigation to enhance agricultural productivity.
2. Tertiary Sector Development: Establish tertiary facilities like schools, hospitals, and banking in rural areas.
3. Industrial Promotion: Establish agro-based industries to process agricultural products like vegetables, fruits, and grains.
4. Tourism and Craft Promotion: Encourage tourism and regional craft industries to create jobs.
5. IT Services: Introduce new services like information technology and e-commerce in rural areas.

Q.3 “Efficient means of transport are prerequisites for the fast development of the country.” Support the statement with examples.

Ans:

1. Movement of Goods and Services: Efficient transport systems like railways and highways ensure faster movement of raw materials to industries and finished goods to markets.
2. Boosting Trade: Ports and airports facilitate international trade, enhancing exports and imports.
3. Employment Generation: Development of transport systems creates jobs in construction, maintenance, and logistics.
4. Examples: The Golden Quadrilateral Highway Network and expansion of metro systems in cities have boosted connectivity and economic growth.

Q.4 Why is the organised sector preferred by employees? Explain.

Ans:

1. Job Security: Workers enjoy regular employment with minimal risk of termination without cause.
2. Social Benefits: Employees are entitled to health insurance, paid leaves, retirement benefits, and pensions.
3. Better Working Conditions: Fixed working hours and safe environments are provided in the organised sector.

Q.5 ‘‘There is a need for protection and support for the workers in the unorganised sector.’’ Evaluate this statement.

Ans:

1. Low Wages: Workers in the unorganised sector are often paid below minimum wage.
2. Lack of Job Security: They can be dismissed without notice and have no formal contracts.
3. Unsafe Conditions: Workers face hazardous environments with no safety measures or medical facilities.
4. Lack of Benefits: They do not receive pensions, health insurance, or paid leaves.
   Conclusion: Providing legal protections, minimum wages, and social security schemes is essential for improving their conditions.

Q.6 ‘‘Activities in the private sector are guided by the main motive to earn profit.’’ Evaluate this statement.

Ans:

1. Profit Orientation: Private sector enterprises like industries and businesses focus on maximising profits rather than social welfare.
2. Cost Efficiency: To achieve profits, they aim to reduce costs, often by cutting corners on wages or working conditions.
3. Limited Welfare: Services like healthcare and education offered by the private sector are often expensive, limiting access for the poor.

Q.7 “The pace of change in the communication sector has been rapid in modern times.” Support the statement with examples.

Ans:

1. Digital Revolution: Introduction of mobile phones, the internet, and social media platforms like WhatsApp and Facebook has transformed communication.
2. Accessibility: Communication is now instantaneous and global, enabling faster sharing of information.
3. Examples: Expansion of 4G networks, introduction of 5G, and growth of digital payment platforms like UPI are examples of rapid changes.

Q.8 “Tertiary sector activities help in the development of the primary and secondary sectors.” Evaluate the statement.

Ans:

1. Support Services: Tertiary sector provides transport, storage, and banking services necessary for the functioning of primary and secondary sectors.
2. Marketing and Distribution: Helps in the marketing and distribution of goods produced in other sectors.
3. Examples: Banking loans for farmers and industrialists, transport of agricultural goods, and insurance for industrial units.

Q.9 “Primary sector’ was the most important sector of economic activity at the initial stages of development.” Evaluate the statement.

Ans:

1. Agriculture-Based Economy: Initially, most economies relied on agriculture, forestry, fishing, and mining for livelihood.
2. Basic Needs: Primary sector fulfilled the essential needs like food, raw materials, and natural resources.
3. Examples: During early civilisations, farming was the primary source of sustenance and trade.

Q.10 Distinguish between ‘Organised’ and ‘Unorganised Sector’.

Ans:

Q.11 Distinguish between primary and tertiary sectors.

Ans: Long Ans.

Distinguishing between Primary and Tertiary Sectors

Conclusion:
The primary sector focuses on raw material extraction, while the tertiary sector provides essential services to facilitate economic activities in all sectors. Both are interdependent for the overall growth of the economy.

Q.12 Distinguish the service conditions of organised sector with that of unorganised sector.

Ans:

Q.13 How does the public sector contribute to the economic development of the nation?

Ans:

1. Infrastructure Development: Builds roads, railways, and power plants, facilitating growth in all sectors.
2. Essential Services: Provides affordable healthcare, education, and public utilities.
3. Employment: Creates jobs through government projects and public enterprises.
4. Economic Stability: Controls key industries like defense and energy, ensuring balanced growth.

Long Answer Type Questions:

1. ‘Tertiary sector is playing a significant role in the development of Indian Economy.’ Justify the statement. [SQP 2020-21, 2019, 2016-17]
2. “Workers in the organised sector enjoy security of employment.” Evaluate the statement. [CBSE 2020]
3. “All the services of the ‘service sector’ are not growing equally well.” Evaluate the statement. [CBSE 2020]
4. Why is organised sector preferred by the employees? Explain. [2020]
5. Why is agriculture called the backbone of Indian economy ? Explain. [Delhi 2020]
6. Why is the tertiary sector becoming important in India? Explained. [CBSE 2020, Delhi 2019]
7. Compare the economic activities of the private sector with that of the public sector. [2019]
8. How do we count various goods and services for calculating Gross Domestic Product (G.D.P.) of a country? Explain with example. [2019]
9. Highlight any five benefits of organised sector, with examples. [2019]
10. Distinguish between Public sector and Private sector. [2019]
    

Answers:

Q.1 ‘Tertiary sector is playing a significant role in the development of Indian Economy.’ Justify the statement.

Ans:
The tertiary sector, also known as the service sector, plays a crucial role in the development of the Indian economy. Its significance can be understood through the following points:

1. Largest Contributor to GDP:
   • The tertiary sector contributes the highest share to India’s GDP compared to the primary and secondary sectors.
   • Example: As of recent years, services like IT, finance, and communication have dominated the economy.
2. Employment Generation:
   • Although the sector employs fewer people compared to the primary sector, its contribution is steadily increasing, especially in urban areas.
   • Jobs in banking, education, healthcare, and transportation are crucial for improving living standards.
3. Support to Other Sectors:
   • The tertiary sector provides essential services like transport, storage, communication, and banking, which support the growth of primary (agriculture) and secondary (manufacturing) sectors.
4. Rise of IT and Communication Services:
   • India’s IT industry has made a global impact, with cities like Bengaluru becoming IT hubs.
   • The export of software services and the rise of BPOs have added to foreign exchange earnings.
5. Growing Demand for Services:
   • Urbanisation and increasing income levels have created demand for education, healthcare, entertainment, and tourism.
   • Example: Growth in online platforms like e-commerce and digital payments is a result of the service sector’s evolution.
6. Infrastructure Development:
   • Infrastructure projects like railways, airports, and road connectivity directly benefit from the tertiary sector.
   • Efficient communication and transport systems ensure faster economic growth.

Conclusion:
The tertiary sector has become the backbone of India’s economy. Its importance lies not only in its direct contribution to GDP but also in its ability to support and drive growth in the primary and secondary sectors. Continuous investment and innovation in this sector are vital for India’s long-term development.

Q.2 “Workers in the organised sector enjoy security of employment.” Evaluate the statement.

Ans:
The organised sector provides workers with significant advantages in terms of employment security and benefits, which can be evaluated as follows:

1. Job Security:
   • Workers in the organised sector are protected by labour laws, which prevent arbitrary dismissal.
   • Examples: Government employees, bank staff, and private company workers with contracts.
2. Regular Wages:
   • Employees receive regular monthly payments as per their employment contracts.
   • They are also entitled to overtime pay, ensuring financial stability.
3. Social Security Benefits:
   • Organised sector workers enjoy benefits like pensions, provident funds, health insurance, and gratuity, ensuring long-term stability.
4. Safe Working Conditions:
   • Employers in this sector are legally bound to provide safe and healthy working environments.
   • Examples: Provision of safety equipment in factories and regular health check-ups.
5. Paid Leaves and Holidays:
   • Employees are entitled to annual paid leave, sick leave, and maternity/paternity leave as part of their benefits.

Conclusion:
The organised sector ensures that workers enjoy stable and secure employment, contributing to their overall well-being. However, only a small portion of India’s workforce is employed in this sector, leaving the majority in the unorganised sector, which lacks such protections.

Q.3 “All the services of the ‘service sector’ are not growing equally well.” Evaluate the statement.

Ans:
While the service sector contributes significantly to India’s GDP, all its services are not growing uniformly. This can be evaluated as follows:

1. High-Growth Services:
   • IT, finance, and communication services have experienced rapid growth due to globalisation and technological advancements.
   • Example: The Indian IT industry is a global leader, contributing to exports and employment.
2. Stagnant Services:
   • Traditional services like small-scale retail, street vending, and manual repair work have seen limited growth. These are mostly unorganised and poorly paid.
   • Example: Workers in unorganised retail often struggle with low wages and job insecurity.
3. Education and Healthcare Disparities:
   • While urban areas see modern facilities and services, rural regions lack adequate healthcare and educational institutions.
4. Tourism Potential Unfulfilled:
   • Despite being a potential growth driver, tourism is underdeveloped in many areas due to lack of infrastructure.
5. Employment Issues:
   • Many services employ low-skilled workers who face irregular employment and inadequate pay.

Conclusion:
The uneven growth of services within the service sector highlights the need for balanced development, focusing on unorganised and underserved areas to ensure equitable progress.

Q.4 Why is the organised sector preferred by employees? Explain.

Ans:
Employees prefer the organised sector due to the following advantages:

1. Job Security:
   • Workers are protected by laws and regulations, ensuring they cannot be arbitrarily terminated.
2. Regular Wages:
   • Salaries are fixed and paid regularly, along with provisions for overtime and increments.
3. Social Security Benefits:
   • Workers receive benefits like provident funds, pensions, health insurance, and gratuity.
4. Safe Working Conditions:
   • The sector ensures safe and healthy workplaces, with legal standards for safety equipment and measures.
5. Paid Leaves and Holidays:
   • Employees are entitled to annual paid leaves, sick leave, and maternity/paternity benefits.

Conclusion:
The organised sector offers economic stability, job security, and legal benefits, making it a preferred choice for employees.

Q.5 Why is agriculture called the backbone of the Indian economy? Explain.

Ans:
Agriculture is often referred to as the backbone of the Indian economy due to its crucial role in supporting the nation’s development.

1. Largest Employer:
   • Agriculture employs over 44% of India’s workforce, making it the primary source of livelihood for the majority of the population.
2. Contribution to GDP:
   • Despite a decreasing share in GDP, agriculture continues to contribute significantly to the economy by providing raw materials for industries like textiles and food processing.
3. Food Security:
   • It ensures food supply for the population, making India self-reliant in essential grains like rice and wheat.
4. Supports Other Sectors:
   • Agriculture provides raw materials for secondary industries and generates demand for tertiary services like transport, storage, and banking.
5. Exports:
   • India is a major exporter of agricultural products like spices, tea, and cotton, earning valuable foreign exchange.
6. Rural Development:
   • The sector drives rural development by creating jobs and fostering allied activities like dairy, poultry, and fisheries.

Conclusion:
Agriculture’s role in employment, food security, and industrial support highlights its importance as the backbone of the Indian economy. Investment in modernising agriculture and improving rural infrastructure is essential to maintain its pivotal position.

Q.6 Why is the tertiary sector becoming important in India? Explain.

Ans:
The tertiary sector is becoming increasingly important in India due to the following reasons:

1. Support to Primary and Secondary Sectors:
   • The tertiary sector provides essential services like transport, banking, communication, and storage, which support the agricultural and industrial sectors.
2. Rising Demand for Services:
   • With urbanisation, higher incomes, and better standards of living, the demand for services such as education, healthcare, and tourism has significantly increased.
3. Growth of IT and Communication:
   • India has become a global leader in information technology and communication services, which contribute significantly to the economy and export revenues.
4. Employment Generation:
   • The tertiary sector has created employment opportunities in diverse fields such as retail, finance, transportation, and entertainment.
5. Contribution to GDP:
   • The tertiary sector is the largest contributor to India’s GDP, surpassing the primary and secondary sectors.

Conclusion:
The tertiary sector’s rapid growth is driven by its role in supporting other sectors, meeting growing service demands, and contributing significantly to India’s economic development.

Q.7 Compare the economic activities of the private sector with that of the public sector.

Ans:

Conclusion:
While the private sector focuses on profit and efficiency, the public sector ensures equitable development and provides essential services to the population. Both are crucial for balanced economic growth.

Q.8 How do we count various goods and services for calculating Gross Domestic Product (GDP) of a country? Explain with example.

Ans:
To calculate GDP, only the value of final goods and services produced within a country during a financial year is considered. This avoids double counting.

1. Final Goods and Services:
   • Final goods are those that are ready for consumption and do not require further processing.
   • Example: Bread purchased by a consumer.
2. Exclusion of Intermediate Goods:
   • Intermediate goods, which are used in the production of final goods, are excluded to prevent duplication.
   • Example: Flour used to make bread is not counted separately if the bread’s value is already included.
3. Sum Across Sectors:
   • GDP is calculated by adding the value of production across the primary, secondary, and tertiary sectors.

Conclusion:
GDP provides a comprehensive measure of a country’s economic activity by summing up the value of all final goods and services produced in an economy.

Q.9 Highlight any five benefits of the organised sector, with examples.

Ans:

1. Job Security:
   • Workers in the organised sector enjoy stable employment, protected by laws.
   • Example: A government employee cannot be arbitrarily terminated without proper procedure.
2. Fixed Working Hours:
   • The organised sector ensures regulated working hours with overtime pay for extra work.
   • Example: Factory workers in organised industries follow an 8-hour work schedule.
3. Social Security Benefits:
   • Employees are entitled to benefits such as provident fund, pensions, and gratuity.
   • Example: A school teacher in a government school receives pension after retirement.
4. Safe Working Environment:
   • Employers are mandated to provide safe and healthy working conditions.
   • Example: IT employees in organised offices have ergonomic facilities and healthcare support.
5. Paid Leaves and Holidays:
   • Workers are granted annual paid leaves, maternity/paternity leave, and sick leave.
   • Example: Employees in public sector banks enjoy national holidays and vacation benefits.

Conclusion: The organised sector ensures economic stability and welfare for workers through legal protections and structured benefits.

Q.10 Distinguish between Public sector and Private sector.

Ans:

OR

Conclusion: Both sectors play a vital role in the economy, with the public sector focusing on equitable development and the private sector driving efficiency and innovation.