Sectors of the Indian Economy – Comprehensive Study Notes

Final Goods

Goods/services that are consumed by the end-user and are included in GDP calculations.

Intermediate Goods

Goods used in the production of final goods and excluded from GDP calculations to avoid double counting.

GDP (Gross Domestic Product)

The total value of all finished goods and services produced within a country's borders in a specific time period (usually a year).

GVA (Gross Value Added)

A measure of the value of goods and services produced in an area, calculated as GDP minus taxes on products plus subsidies on products.

Disguised / Hidden Unemployment

A form of underemployment where more people are engaged in an activity than are actually required, resulting in some workers having near-zero marginal productivity.

Organised Sector

A sector registered with the government, adhering to labor laws, and providing employment security, fixed hours, benefits, and social security.

Unorganised Sector

A sector consisting of small, scattered units often outside formal regulation, characterized by low and irregular wages, no employment security, and no benefits.

Public Sector

A sector where the government owns assets and delivers services, primarily for public welfare rather than profit (e.g., Railways, Post Office).

Private Sector

A sector where individuals or companies own assets and operate for profit (e.g., TISCO, Reliance Industries).

Right to Work (MGNREGA 2005)

A constitutional principle operationalized in India through the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005, guaranteeing 100 paid days of work per year to rural adults.

Primary Sector

The sector involving the direct use of natural resources like agriculture, fishing, forestry, and mining, forming the base for all subsequent production.

Secondary Sector

The industrial sector where natural products are transformed into finished goods through manufacturing processes in factories, workshops, or homes.

Tertiary Sector

The service sector that does not produce tangible goods but supports the development of the primary and secondary sectors, including transport, banking, and essential personal services.