NOTES PREPARED BY
HEENA KOUSAR ,MA ,Bed
TEACHER SCHOOL EDUCATION
DEPARTMENT JAMMU AND KASHMIR
LESSON No. 2
UNDERSTANDING THE INDIAN ECONOMY
TERMINOLOGY
Economic Activity: - That activity which gives an income or increases the value of items called an Economic activity.
Economy:- Production, distribution and consumption of goods and services constitute economy.
Secondary Activities: -Secondary activities are those activities in which primary. goods are used to produce some other commodity i.e increase in value of item e.g manufacturing.
Primary Activities: - Primary activities are those activities which are associated directly with land and water e.g farming, hunting, fishing, mining etc
Tertiary Activities: - All those activities which link the producers and consumers are called tertiary activities. Retail stores, whole sale shops and Banks are some of its examples
Private Sector:- The Private sector is owned and controlled by individuals or a group of individuals with the objective of profit making.
Public sector: - Public sector is controlled and owned by the govt. with the aim of public welfare in general.
Unemployment:- It is a situation in which a section people, who are able and willing to work but do not find gainful work.
Disguised unemployment: - It is a situation in which more people are engaged in an activity than the required number.
Main cause of unemployment: population growth is the main cause of unemployment in India.
Gross Domestic Product(GDP): It is the value of overall output of goods and services at market prices produced with in a country during a particular year.
Organised sector:- Organised sector covers those enterprises or places of work where the terms of employment are regular and therefore people have assured work.
Unorganised sector:- It is characterised by small and scattered unit which are largely outside the control of the government.
Poverty:- Poverty refers to a situation in which a section of society is unable to meet its basic needs.
Food Security:- It means availability, accessibility and affordability of food to all people at all time
Q.1) What is Gross Domestic product and how is it calculated? Describe the contribution of the three sectors to the GDP of the Indian Economy?
Ans)- Gross domestic product is the value of all final goods and services produced within a country during a particular year. It is the sum of production in the three sectors i.e. primary, secondary and tertiary gives what is called Gross Domestic Product of a country.
Calculation of GDP can be understanding with the help of example. A farmer who sells rice to a flour mill for Rs.10 per kg. The mill grinds the wheat and sells the flour to biscuit company for Rs.15 per kg. The biscuit company uses the flour and other things such as sugar, milk and oil to make 10 packets of biscuit. It sells biscuit in the market to the consumer for Rs.150 (Rs.15 per packet). Biscuits are the final goods, that is, product that reaches the consumers. Thus the value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year and the production in the three sector gives what is called the Gross Domestic Product.
Contribution of the three sectors to the GDP of India for 2012-13
Sectors
Primary sector. GDP percentage
Secondary sector-. 13.68%
Territory sector. 27.03%
SCIENCE 70068. 59.29%
Q-2) Explain the term multinational corporations and how globalization has made the world's one big market. What are the advantages of globalization?
Ans:- A multinational corporation is a company that owns or controls production in more than one nation.
Globalization is the process by which the economies of countries around the world become increasingly integrated over time. MNGS (Multinational Groups) are agents of globalization. Globalization gives business access to markets that would have been difficult to reach in past. Because of the internet, customers from anywhere in the world can order products from companies anywhere else in the world, and have those products delivered by aeroplane in just a few weeks. This is naturally a tremendous advantage to business who stand to increase their potential customer base by millions by reaching out to foreign buyers. Globalization allows businesses to access labour at cheaper prices So it is how the globalization has made the world one big market.
Advantages of Globalization
i) Resources of different countries are used for producing goods and services they are able to do, most efficiently.
ii) Consumers to get much wider variety of products to choose from.
iii) Consumers get the product they want at more competitive prices.
Q.3) What are the various forms of unemployment?
Ans) Following are the various forms of unemployment.
i) Seasonal unemployment: Seasonal unemployment happens when people are not able to find jobs during some months in a year and is generally found in the agricultural sector of the economy.
ii) Disguised unemployment: - It refers to that unemployment which is not visible to everyone and remains concealed. This usually happens among family members engaged in agricultural activity. The activity requires the service of five people but engaged eight people. In such a situation, even if many workers are withdrawn, the same work can be completed by few workers.
iii) Educated unemployment:- Many youths with matriculation graduation and post-graduation degrees are not able to find job. This is called educated unemployment.
Q.4) Define poverty. Explain four Important undertaken by the Govt. of India?
Ans) Poverty refers to a situation in which a section of society is unable to meet its basic needs. These include minimum human rosin respect of food, clothing housing, education and health.
Following are the anti-poverty measures undertaken by the govt. of India.
i) MGNREGA 2005: Mahatma Gandhi National Rural Employment Guarantee Act is a scheme implemented by the Govt. of India at national level and of the magnitude not seen anywhere in the world. The scheme guarantees unskilled wage employment of 100 days to one person in every rural household at minimum wage. The scheme is implemented in all districts, of the country to create employment and hence reduce poverty
ii) PMRY :- The Prime Ministers Rozgar Yojna scheme was started in 1993 to create self-employment opportunities for educated unemployment youth in rural areas and small towns.
iii) REGP: - Rural Employment Generation Programme was launched in 1995 so that a common man can get assistance in the form of loan to establish small business units.
iv) SGSY:-Swarna janyati Gram Swarozgar Yojna is the programme which was launched in 1999 bring the asserted poor families above the poverty line by organizing them into self help group through a mix of bank credit and govt. subsidy.
v) Antodaya Anna Yojna (AAY) - This scheme was launched in December 2000 to provide food grains at highly subsidized rates to the families below poverty line.
Q.5) Define Food Security, what do you understand by TPDS? Describe the three dimensions of food security.
Ans) .Food is as important as air and water for sustenance of life. Food security actually means getting something more than the bare minimums or to say two meals a day
Food security means Availability, Accessibility and Affordability of food to all people at all times.
Targeted PDS
Public Distribution System (PDS) is the most important step taken by the Govt. of India towards ensuring food security. PDS was earlier universal with no discrimination between the poor and non-poor. In 1992 Revamped public Distribution System (RPDS) was introduced in 1700 blocks to reach out to remote and backward areas.
However, to target the poor irrespective of the area, the targeted Public Distribution System (TPDS) was introduced in 1997
The three Dimensions of food security are:-
(a) Availability of food:- It means food production within the country, food imports and previous years stock stored in Govt. Granaries are sufficient to meet the requirements
(b) Accessibility: It means food should be available and accessible in adequate quantity and quality to meet the nutritional requirements of the people i.e within the reach of every person.
(c) Affordability:- It implies that food should be available at reasonable and affordable prices to all sections of the population.
SHORT ANSWER TYPE QUESTIONS
Q.1) What are various activities undertaken in the primary sector, secondary. sector & Tertiary sector.
Ans) Primary Activity: Cultivation of Crops, Mining, Quarrying, Fishing etc are some of the examples of primary activities.
Secondary Activity:-Paper from wood, bread from wheat and nails and Iron bars are examples of secondary activities.
Tertiary Activities:- Retail shops, wholesale shops Bank, hotels and restaurants, educational & Governmental offices are examples of Tertiary activities.
Q.2) What do you understand by people as a resource?
Ans) People as resources is always of referring to a country's working people in terms of their existing productive skill & abilities. Looking at the population from this productive aspect, emphasizes its abilities to contribute to the creation of the GNP (Gross National Product) Like other resources population is also a resource called human resource. It is the most important resource without, this all other resources will not find their use and they will lose their value. It is the human resource who by his her skill, ability, knowledge, technology, uses, creates, extracts, and finds other resources and afterwards uses them. Petroleum is resource only when its utility was discovered by the mankind. Similarly, Nuclear energy is resource because of the country, place or state.human resource. Hence human resource is the main agent in the development of any
Q.3) Explain the term poverty line?
An) Poverty line may be defined as a line which differentiate between poor and non-poor. The line as such may not be marked line but the value expression reflects the limits of poverty. The limits of poverty may be in terms of income and consumption
Q.4 What is Buffer stock?
Ans) It is the stock of food grains, namely wheat and rice produced by the govt. through Food Corporation of India (FCI).
Q-5) What is meant by "Food for working programme"?
Ans) It was launched in 2004 in 15most backward districts of country. The programme is open to all rural poor who are in need to wage employment & desire to do manual unskilled work.
FILL IN THE BLANKS: -
1)Actions that involve the production, distribution and consumption of goods and services at all levels within society are called Economic Activities.
2) The Secondary sector is also called as industrial sector.
3) The sum of all final goods and services in the three sectors gives what is called the Gross Domestic Product (GDP) of a country.
4) Globalisation refers to activities in which a large number of business enterprises carry out their business at many locations across the world.
5) The Education Of the people of a country can be considered as major factors determining quality of the population of a country.
6)NSSO defines unemployment as a situation in which all those who, owing to lack of work, are not working but seek work.
7) In the Public sector, the government owns most of the assets and provides all the services.
8)Poverty Is defined as a situation of lack of income to acquire minimum necessities of the life
9) The consumption levels, as states to determine the poverty line, are 2400 k (calories) for rural areas and 2100 k (calories) for urban area.
10) The rate at which the FCI purchases wheat and rice from the farmers in the state, where there is surplus production is called Minimum Support Price
ONE WORD ANSWERS
1)The sector which generates employment and income in agriculture called primary sector
2) Rearing of animals for milk and milk products is called Dairy Farming.
3) Tertiary sector is also called Service Sector
4) A sector characterized by small and scattered units is called as unorganised sector
5)A person living below the poverty line is poor
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