Welcome dear students! Today we are going to learn about Sectors of Indian Economy from Class 9 Social_Science. In this chapter, we will explore the major sectors of the Indian economy, the meaning and importance of the primary sector, the importance and classification of the secondary sector, the role of the public and private sectors, the importance of the tertiary sector, and finally, the economy of Karnataka. As you have already learned, based on economic activities, the Indian economy has been classified into three sectors. The first is the primary sector, consisting of agriculture, animal husbandry, forestry, logging and fishing, and mining. The second is the secondary sector, consisting of manufacturing, quarrying, gas and water purification, construction, and generation of electricity. The third is the tertiary sector, consisting of education, transport, storage communication, tourism, hotel and restaurant, insurance, real estate, business services, public administration, and other services. [CHECKPOINT]
Let us begin with the Primary Sector. The primary sector includes agriculture and its allied activities like Sericulture, Horticulture, Animal husbandry, Poultry, Fishery, and Floriculture, which provide raw materials to agro-based industries. Agriculture is a major occupation in India and remains the backbone of our economy. Its importance can be briefed as follows. First, people are still depending on agriculture, directly and indirectly for their livelihood. Second, it provides raw materials for agro-based industries. Third, it provides food for human beings and fodder for animals. Fourth, it helps in the capital formation through the savings of the farmers. Though agriculture is the main occupation, the condition of farmers is not yet satisfactory due to several reasons. Majority of farmers are small and marginal. A large portion of cropped area is rain fed. Productivity in agriculture is very low. Majority of farmers are ignorant about the modern tools and new techniques of production. Finally, farmers do not get the correct price for their products due to the existence of middlemen. The Government has undertaken various measures to improve the productivity of agriculture and also to improve the conditions of farmers in the country. [CHECKPOINT]
Now let us move to the Secondary Sector. The secondary sector is also called the Manufacturing sector where raw materials are converted into finished products. The industries can be classified into three groups, namely Agro-based Industries, Forest-based Industries, and Mineral-based Industries. Industries are also classified into two groups on the basis of ownership, namely public sector industries and private sector industries. Before we continue, please complete this activity. Meet a farmer of your village and collect the following information. First, ask what are the crops grown by them in this year. Second, ask after the crops are produced, how is the selling system. Also, as an activity, try to know the recent developments in agriculture. Public sector industries are under the ownership of the Government. These are classified as Central Public Sector Enterprises and State Public Sector Enterprises. Private sector industries are under the ownership of Private People. They include multinational corporations and other private industries on the basis of capital investment and machineries. They are classified as large scale, medium scale, small scale, and micro type industries. [CHECKPOINT]
Let us look at the Public Sector in India. During the pre-independence period the participation of the public sector in economic activity was virtually absent. The only organizations which were under the management and the government control were Railways, Port Trust, Post and telegraphs, Aircraft, and defence factories. However, since the inception of Industrial Policy 1956, there has been a huge expansion of the public sector industries in independent India. Public sector units at present constitute a major national capability in terms of their scale of operation, coverage, technical expertise, and employment generation. The important public sector units in India are Hindustan Machine Tools, Bharat Heavy Electricals Limited, Indian Telephone Industries, and Hindustan Ship Building Yard. The private sector refers to all types of individual and corporate enterprises in the field of economic activity. In this sector different factors of production in various productive activities are owned and managed privately by individuals or private corporate bodies. For example Tata, Birla, Zindal, Mahindra, Ambani, and Kirloskar. [CHECKPOINT]
Let us understand Multinational corporations. An enterprise which is managed from home country and has operational branches in different countries is called Multinational corporation. Generally any company or group that gets more than quarter of revenue from its operations from outside the home country is also called Multinational corporations. After economic reforms many Multinational corporations have started their enterprises in India. Examples include Sony from Japan, Samsung from South Korea, and Hindustan Unilever from the United Kingdom. Post 1991 Economic reforms by the Indian Government has brought Public Private Partnership in various infrastructure projects. Privatization has got a major boost after the 1991 Economic reforms. Now, let us understand the importance of the industrial sector. The industrial sector strengthens the economy in seven ways. First, it brings higher income to the nation. Second, it provides employment to the people. Third, standard of living of the people will be increased. Fourth, it helps to modernise the agriculture as it provides tractors, machineries, and fertilisers. Fifth, it reduces the pressure of population on agriculture, as many will migrate to cities and towns. Sixth, it helps to earn more foreign exchange. Seventh, industrial regions also develop as centers of trade, education, transport, and banking. [CHECKPOINT]
Next, we will learn about the Tertiary Sector. The tertiary sector is also called the service sector. At present the world economy is dominated by the service sector. Banking, Insurance, Trade, Transport and communication, Health, Education, and training are important components of the service sector. Banks are the financial institutions, which accept different types of deposits from the general public. Then they advance loans to those who are in need of finance. Banks act as the mediators between savers and investors. Insurance is a way of protection against the financial losses. It guards against the unforeseen events, which cause damages and destruction to human life and properties. For example death, incapacitation due to accident, old age sickness, theft, fire, flood, earthquake, riot, lightning, burning, sea piracy, sinking of ship, and vessels colliding. There are two types of insurance, namely General insurance and Life insurance. Transport is a system which carries passengers and goods from one place to another. Land transport, water transport, and air transport are the different modes of transport, which play an important role in economic development. They bring a wide market for the goods and services. [CHECKPOINT]
Communication refers to the sharing of ideas, thoughts, and messages from person to person and from one place to another place. Postal services, telecommunications, fax, email, newspapers, and Internet all help to communicate the people from one to another place of the world. Health is wealth and a sound mind in a sound body are statements that convey the importance of health in one’s life. According to the World Health Organization, Health refers to the person, who is free from physical, mental, social, and intellectual disorders. Health care in India is gradually improving. There is a steep decline in Death rate to 7.2 per thousand. Infant mortality rate is 47 per thousand live births, and child mortality is 15 per thousand. There is a rise in average expectancy of life to 66.9 years in 2011. Medical awareness programs have helped to control deadly diseases like Tuberculosis, Cholera, and Malaria. Polio has been completely eradicated from India due to the determined will of the Government. [CHECKPOINT]
Education is derived from a Latin word educare which means lead to light. According to Gandhiji, Education brings all round development in personality of the child. The Government in order to increase the literacy, has brought Rastreeya Saksharatha Mission in 1988, Sarva Shiksha Abhiyan in 2001, Mid day meal scheme in 1995, and Raashtriya Madhyamik Shiksha Abhiyaan in March 2009 to improve the quality of education in our country. Now let us look at the contribution of different sectors to our national income. In 1950 to 51, the primary sector contributed 59 percent, the secondary sector contributed 13 percent, and the tertiary sector contributed 28 percent. In 1990 to 91, the primary sector contributed 35 percent, the secondary sector contributed 24 percent, and the tertiary sector contributed 41 percent. In 2000 to 01, the primary sector contributed 27 percent, the secondary sector contributed 25 percent, and the tertiary sector contributed 48 percent. In 2011 to 12, the primary sector contributed 14 percent, the secondary sector contributed 27 percent, and the tertiary sector contributed 59 percent. [CHECKPOINT]
Now we will study the Karnataka Economy. Karnataka is the eighth biggest state of India, extending over an area of 1,91,791 square kilometers. For administration purposes it is divided into 4 revenue divisions, 31 districts, and 239 taluks. It is endowed with rich natural resources like evergreen forests of the western ghats, coastal region, rich flora and fauna, and ore deposits. These resources are contributing to the economic development in many ways. Agriculture in Karnataka employs more than 52 percent of the workforce. It is characterised by wide crop diversification. Karnataka has attained self sufficiency in food grains, but in case of pulses there is deficit. About 30 percent of the cultivable area is under irrigation and 70 percent is dependent on rainfall. Irrigation potentials are created through major and minor irrigation projects. For example Ghataprabha, Malabrabha, Narayanapura, Alamatti dam, Tungabhadra, Hemavathi, Harangi, and Krishnaraja sagar. [CHECKPOINT]
Paddy, jowar, ragi, wheat, and bajra are important food crops grown in Karnataka. Cotton, sugarcane, tobacco, potato, oil seeds, coffee, and tea are major commercial crops. Cardamom, pepper, coconut, areca nut, and banana are the major species and plantation crops. Karnataka is one of the leading states in horticulture. The state government has undertaken initiatives like area expansion, assistance to farmers, supply of seeds and seedlings, micro irrigation, control of pests and diseases, post harvest management, and marketing. The Karnataka state Horticulture Development Agency has been established to develop horticulture farms and nurseries with a scientific approach. The National Bank for Agriculture and Rural Development provides credit facilities for horticultural crops. Floriculture is also called flower farming. It is the cultivation of flowering and ornamental plants for botanical gardens and floristry. Karnataka is the leader in floriculture. Devanahalli, Chikkaballapura, Huvirahadagali, and Savanur are leading flower growing taluks. [CHECKPOINT]
India’s floriculture exports are increasing, with a major portion from Karnataka. Karnataka Agro Industries Corporation and National Horticulture Board help establish flower business with cold storage and freight subsidies. Karnataka ranks tenth in India in milk production. The state’s share in livestock and poultry is 6.20 percent and 6.48 percent respectively. Milk production increased to 11.80 million tons in 2021 to 22. Veterinary centers cater to livestock health. Karnataka Milk Federation is a state level cooperative implementing dairy development under operation flood. For fisheries, Karnataka has a continental shelf of 27000 square kilometers, 320 kilometers of coastline, and 5.60 lakh hectares of inland waters. Total fishermen are 9.61 lakh, comprising 3.28 lakh marine and 6.33 lakh inland fishermen. Fish production was 10.74 lakh metric tons in 2021 to 22. Seven fishing harbors are at Karwar, Tadari, Honnavar, Bhatkal, Gangolli, Malpe, and New Mangaluru. [CHECKPOINT]
Karnataka is a centre for large public sector industries. Hindustan Aeronautics Limited is dedicated to research and development for indigenous fighter aircraft, employing over 9500 people. Other heavy public sector industries include National Aerospace Laboratories, Bharat Heavy Electricals Limited, Indian Telephone Industries, Bharat Earth Movers Limited, Bharat Electronics Limited, and Hindustan Machine Tools. Important private sector industries include TVS motor cycle plant at Mysuru, Tata motors at Dharwad, Kirloskar, ABB, Kavika, and Larsen and Turbo. Infosys, Wipro, and TCS are leading Information Technology companies. Karnataka leads in biotechnology and was the first to frame an industry oriented biotechnology policy. Bharatha Rathna Sir M Vishweswaraiah established State Bank of Mysuru in 1913. Dakshina Kannada and Udupi are called the Cradles of banking. Canara Bank is the first to sponsor a Regional Rural Bank. Now 12 public sector commercial banks, 16 private commercial banks, and regional rural banks operate in the state. Industrial Development Bank of India, Axis bank, ICICI bank, and Indus bank are leading private banks. [CHECKPOINT]
Tourism has been prioritized since 1988, providing employment and aiding socio economic growth. Karnataka generates power in four forms: Hydro power, Thermal power, Wind power, and Solar power. Hydro power is the major source. Karnataka Power Corporation Limited owns plants, and Karnataka Power Transmission Corporation Limited distributes power. Transport is the lifeline of the state economy. Road transport connects every corner. Under Pradhan manthri Gram Sadak Yojane, village roads are linked. Karnataka State Road Transport Corporation is bifurcated into four: Karnataka State Road Transportation, Bengaluru Mahanagar Road Transportation, North West Karnataka State Road Transportation, and Kalyana Karnataka State Road Transportation. Railways contribute largely to development, with the South Western Railway zone headquartered at Hubballi. Water transport has a 320 kilometer coastline with one major port, New Mangaluru, and 13 small ports like Karwar, Belikeri, and Malpe. Air transport is fastest, with a green field international airport at Devanahalli, and others at Mangaluru, Hubballi, Belagavi, Kalaburgi, Shivamogga, and Mysuru. Telecommunication is operated by Bharath Sanchar Nigam Limited, Vodafone, Bharathi Airtel, and Reliance Jio. [CHECKPOINT]
Health and education in Karnataka have progressed significantly. In 2021 to 22, there are 2396 primary health centers, 9476 sub-centers, and 202 community health centers. Programs like Janani Suraksha Yojana, Thayi Bhagya, and Madilu are implemented. Education reforms ensure quality. Karnataka attained 75.36 percent literacy by 2011. The Karnataka knowledge commission was established to extend higher education and meet industry and global challenges. All these fields contribute to economic development through mutual cooperation. Now let us complete the exercises. For the fill in the blanks section. Question one. Main occupation of India is agriculture. Question two. Health and Education come under tertiary sector. Question three. The total Geographical land of Karnataka is 1,91,791 square kilometers. Question four. State Bank of Mysuru was established by Bharatha Rathna Sir M Vishweswaraiah in 1913. Question five. Manufacturing activities belong to secondary sector. Question six. The coastline area of Karnataka is 320 kilometers. Question seven. To expand higher education Karnataka government has established Karnataka knowledge commission. Question eight. New Economic Policy was introduced in 1991. [CHECKPOINT]
Now for the short answer questions. Question nine asks to define primary sector. The primary sector includes agriculture and its allied activities like Sericulture, Horticulture, Animal husbandry, Poultry, Fishery, and Floriculture which provide raw materials to agro-based industries. Question ten asks to explain the importance of Indian agriculture sector. It is important because people depend on it for livelihood, it provides raw materials for agro-based industries, it provides food for humans and fodder for animals, and it helps in capital formation through farmers savings. Question eleven asks to explain the importance of the Industrial sector. It strengthens the economy by bringing higher income, providing employment, increasing standard of living, modernizing agriculture, reducing population pressure on agriculture, earning foreign exchange, and developing industrial regions as centers of trade, education, transport, and banking. Question twelve asks which districts are called the cradle of Banking. Dakshina Kannada and Udupi districts are called the cradle of banking. Question thirteen asks what is Education according to Gandhiji. According to Gandhiji, Education brings all round development in personality of the child. [CHECKPOINT]
Question fourteen asks to state the group of Industries. Industries are classified into Agro-based Industries, Forest-based Industries, and Mineral-based Industries. They are also classified by ownership into public sector and private sector industries. Question fifteen asks to list important irrigation projects. They are Ghataprabha, Malabrabha, Narayanapura, Alamatti dam, Tungabhadra, Hemavathi, Harangi, and Krishnaraja sagar. Question sixteen asks what is Health according to the World Health Organization. According to the World Health Organization, Health refers to the person, who is free from physical, mental, social, and intellectual disorders. For the activities section, you are asked to give a real picture with supported information about the statement that the third sector is in top position in the world. You should collect recent data showing how the service sector contributes the highest percentage to national income and employment globally, using the table data we discussed. The second activity asks you to list industries in your locality and classify them into agro-based, forest-based, mineral-based, public, or private sectors. For the project, prepare a project on Karnataka Economy by explaining the different economic activities, covering agriculture, horticulture, industry, banking, tourism, power, transport, and education as we have studied. [CHECKPOINT]
Thank you for listening! Keep revising and practicing. Goodbye! [CHAPTER_COMPLETE]