Indian Economy · Topic 4 of 20
Classifying the economy by sector and ownership, employment basics, and introduction to globalisation
The Basics
Every economic activity produces some output. We can group activities by what they produce. This gives three sectors: primary, secondary and tertiary.
Sign up free for the full concept, practice MCQs and PYQsThe Basics
Gross Domestic Product (GDP) is the total value of final goods and services. These are made in a country in one year.
Sign up free for the full concept, practice MCQs and PYQsThe Basics
Stages of growth of an economy means how workers move between sectors.
Sign up free for the full concept, practice MCQs and PYQsThe Basics
Sectoral composition means how much output and jobs each sector gives.
Sign up free for the full concept, practice MCQs and PYQsThe Basics
Employment sounds simple: a person has work, or does not. But counting work correctly is hard.
Sign up free for the full concept, practice MCQs and PYQsThe Basics
The organised sector means enterprises registered with the government. They must follow government rules on work, such as the Industrial Disputes Act, 1947. Organised workers get regular work and fixed hours. They also get benefits like provident fund and paid leave. A factory worker in a large registered company is an example.
Sign up free for the full concept, practice MCQs and PYQsThe Basics
Unorganised workers often lack social security, paid leave, and health cover.
Sign up free for the full concept, practice MCQs and PYQsThe Basics
The public sector means enterprises owned by the government. The government also runs these enterprises. The private sector means enterprises owned by private people or companies. Private owners run these firms for profit. This is the key difference between the two sectors.
Sign up free for the full concept, practice MCQs and PYQsThe Basics
Governments create jobs directly, or create conditions for private jobs.
Sign up free for the full concept, practice MCQs and PYQsThe Basics
Globalisation means countries connecting more closely. They connect through trade, investment, technology, and people movement.
Sign up free for the full concept, practice MCQs and PYQsThe Basics
A Multinational Corporation (MNC) is a company making goods in many countries. For example, it may design a product in one country and build it in another.
Sign up free for the full concept, practice MCQs and PYQsThe Basics
Liberalisation means a country lowers trade barriers, like tariffs.
Sign up free for the full concept, practice MCQs and PYQsThe Basics
Globalisation affects people differently. Some gain a lot. Some gain a little. Some lose out. This note looks at four groups: consumers, big producers, small firms, and workers.
Sign up free for the full concept, practice MCQs and PYQsThe Basics
Foreign trade means buying goods from other countries (imports). It also means selling goods to other countries (exports). Foreign trade is the simplest way markets of different countries join together. The same good can now be bought or sold across borders, not just within one country.
Sign up free for the full concept, practice MCQs and PYQs