(a) Explain the sectoral activities on the basis of employment.

(i) A remarkable fact about India is that while there has been a change in the share of the three sectors in GDP (GVA), a similar shift has not taken place in employment.

(ii) The share of employment in the primary sector continues to be the largest employer even today.

(iii) The primary sector employs a maximum of $\displaystyle 44$% of the people, secondary sector $\displaystyle 25$%, and tertiary sector $\displaystyle 31$%.

(iv) Though there has been an increase in industrial output and services, but enough jobs were not created.

(v) The production of industrial goods went up by more than nine times, employment in the industry went up by around three times.

(vi) The production in the service sector rose by $\displaystyle 14$ times, employment in the service sector rose around five times.

(vii) More than half of the workers in the country are working in the primary sector, mainly in agriculture, producing only about one sixth of the GVA/GDP.

(viii) The secondary and tertiary sectors produce the rest of the produce whereas they employ less about half the people.

(ix) In agriculture people are under employed.

(x) This underemployment can be seen in other sectors as well. For example, there are thousands of casual workers like painters, plumbers, repair persons and others doing odd jobs in the service sector in urban areas who search for daily employment as they do not have better opportunities.

b) Explain the shifts seen between the different sectors of the economy in India.

(i) At initial stages of development, primary sector was the most important sector of economic activity.

(ii) When the methods of farming changed, agriculture sector began to prosper, it produced much more food than before.

(iii) Many people could now take up other activities-there were increasing number of craft-persons and traders.

(iv) Buying and selling activities increased many times.

(v) There were also transporters, administrators, army etc.

(vi) However, at this stage, most of the goods produced were natural products from the primary sector and most people were also employed in this sector.

(vii) Due to new methods of manufacturing, factories came up and started expanding.

(viii) This resulted in a shift from farming to work in factories in large numbers.

(ix) People began to use many more goods that were produced in factories at cheap rates. Secondary sector became the most important in total production and employment.

(x) This means that the importance of the sectors had changed.

(xi) In the past few years, there has been a further shift from secondary to tertiary sector. This service sector has become the most important in terms of total production. Most of the working people are also employed in the service sector.