Sectors of the Indian Economy – Key Vocabulary

Vocabulary flashcards covering fundamental terms and concepts from Chapter 2, “Sectors of the Indian Economy.”

Economy

A system in which people produce, sell, buy, and consume goods and services.

Sector

A group of economic activities classified by a common criterion such as the nature of activity, ownership, or work conditions.

Primary Sector

The part of the economy that extracts or harvests natural resources (e.g., farming, fishing, mining).

Secondary Sector

The sector that converts natural products into manufactured goods through industrial processes.

Tertiary Sector

The sector that provides services to support production and consumption, also called the service sector.

Agriculture and Related Sector

Another name for the primary sector, emphasizing farming, dairy, forestry, and fishing activities.

Industrial Sector

Alternate term for the secondary sector, focusing on manufacturing industries.

Service Sector

Alternate term for the tertiary sector, emphasizing production of intangible services.

Gross Domestic Product (GDP)

The total value of all final goods and services produced within a country in one year.

Gross Value Added (GVA)

The contribution of each sector to the economy’s output after adjusting for taxes and subsidies.

Final Goods

Products that reach the consumer and whose value includes all intermediate inputs.

Intermediate Goods

Goods used up in the production of final goods (e.g., wheat used to make flour).

Organised Sector

Enterprises with formal registration, regular employment terms, and legal protection for workers.

Unorganised Sector

Small, scattered units outside effective government control, often with irregular, low-paid jobs.

Public Sector

Economic activities owned and operated by the government for public welfare (e.g., Railways).

Private Sector

Businesses owned by individuals or companies, guided mainly by profit motive (e.g., TISCO).

Underemployment

A situation where people work but at jobs that do not fully use their skills or time.

Disguised Unemployment

Hidden underemployment where more workers are employed than needed, common in agriculture.

Right to Work

The principle that anyone who needs employment should be guaranteed work by the state.

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005

Indian law assuring 100 days of wage employment per year to rural households.

Employment

Engagement of people in productive economic activities for wages, profits, or family gain.

Value Added

The increase in value that a firm adds to its inputs; used to avoid double counting in GDP.

Basic Services

Essential public services like health, education, police, and banking required by all citizens.

Infrastructure

Physical systems (roads, bridges, power) necessary for economic activity and public welfare.

Human Development

Improvement of people’s well-being through health, education, and standard of living.

Irrigation

Artificial supply of water to land for agriculture, vital for multiple cropping and farm jobs.

Cooperative

An enterprise owned and run jointly by its members, sharing profits or benefits.

Minimum Wages Act

Indian law that sets the lowest wage that can legally be paid to workers in organised sector.

Factories Act

Legislation regulating working conditions, safety, and hours in registered factories.

Casual Worker

A labourer without a permanent or regular job, often hired daily in unorganised sector.

Child Labour

Employment of children below the legal working age, often seen in unorganised activities.

Scheduled Castes (SCs)

Historically disadvantaged communities in India, many of whose members work in informal jobs.

Scheduled Tribes (STs)

Indigenous tribal communities in India, largely dependent on unorganised sector work.

NITI Aayog

Policy think-tank of Government of India, successor to Planning Commission.

National Statistical Office (NSO)

Government agency gathering and publishing data on economy, including employment surveys.

Economic Survey

Annual government publication presenting data and analysis of India’s economic performance.

Census of India

Decennial governmental enumeration providing demographic and some employment data.

Fair Price

Government-declared purchase rate that ensures farmers receive reasonable returns for crops.

Ration Shops

Public distribution outlets selling food grains at subsidised prices to consumers.

Agro-based Industry

Manufacturing that uses agricultural products as raw material (e.g., sugar mills, dal mills).

Dal Mill

A processing unit that converts pulse crops into split lentils (dal) for consumption.

Cold Storage

Refrigerated facility for preserving perishable produce, reducing spoilage and price swings.

Tourism Sector

Service industry providing travel, hospitality, and recreation, with high job potential.

Information and Communication Technology (ICT) Services

Modern service activities based on computing and telecommunication, such as software and call centres.