Describe the occupational structure of the Indian economy

Occupational Structure:-
1. People earn their incomes by doing different kinds of jobs which becomes the means of livelihood.

2. In other words, the working populations derive their incomes by joining various occupations.

3. The distributions of working population among different occupations or ‘productive activities’ is known as ‘occupational structure’.

4. There are three types of occupations in an economy.
a. Primary
b. Secondary and
c. Tertiary.

a. Primary:-
Primary occupations include agriculture, fishing, plantations, mining and allied activities, Food grains and raw materials are produced in the primary sector.

b. Secondary:-
Secondary occupations comprise manufacturing operations in industries both large and small and also included in construction activity. Capital goods, consumption goods and building activity arises out of the secondary sector.

c. Tertiary:-
Tertiary sector generates operations in such services like in banking, commerce, communications, computers and other professions inside as well as outside the government.

5. The occupational structure of India from 1901 to 1996 shows the backwardness of the Indian economy.

6. Over the last eight decades or so the proportion of the working population engaged in primary sector are 66.8%

7. Workers employed in secondary sector are 12.7%. of the total population.

8. Workers employed in Tertiary Sector are 20.5% of the total population.

What is the relationship between occupational structure and modernization

1. The occupational structure of India from 1901 to 1906 shows the backwardness of the Indian economy.

2. Over the last eight decades or so the proportion of the working population engaged in agriculture and allied activities (Primary Sector) had not fallen below 63 percent.

3. There is a gradual but persistent decline in the employment of agriculture during the 1970’s and the 1980’s.

4. There was an accompanied rise in the employment share of the secondary and tertiany sectors.

5. The above trends, if they indicate any movement in the direction of modernization, a lot more still is desirable.

6. In fact, the contribution of agriculture to national income in advance countries is very meager.

7. The share of agriculture in national income in the United Kingdom is 2 percent, in U.S.A it is 3 percent, in Canada 4 Percent and in Australia it is 5 percent.

8. Most of the undeveloped countries have large agricultural sector and working population in these counties mostly depend on agriculture for employment. For example working population engaged in agriculture in Pakistan is 74 percent, in United Arab Republic it is 64 Percent.

9. Less population of people depend on agriculture a in developed countries. For example, in France 14 Percent, Japan 13percent, 4percent in U.S.A and only two percent in U.K.

10. Industrialisation is the most important factor that decide the rate of growth of national income in developed countries.

Explain the growth of Indian agriculture during the Seventh and Eight Plan Period

.Growth of Indian agriculture during Seventh and Eighth plan period;
1. In the 7th (1985-90) and 8th (1992-97) Five year plans major thrust was given to agriculture.
2. Out of a total 7th plan outlay of Rs.1,80,000 crores,22% i.e. Rs. 39,770 crores was allocated to agriculture, irrigation and rural development
3. In the 8th plan also, the allocation to agriculture, irrigation and rural development was not changed in % terms the 8th plan. Out of total outlay Rs.4,34,100 crores,21.9% was allotted to agriculture which is equal to Rs.93,680 crores.
4. “The Green Revolution” strategy was also implemented during these plan periods.
5. The food grains yield increased from 5.5% in 1950 to 13.8% in 1990-91.
6. Particularly the wheat crop recorded substantial increase from 6.6% in 1980 to 22.7% in 1991.
7. Rice from 7.1% to 1950 to 17.5% in 1991.
8. As a result of technology or better methods of production there was a substantial increase in the growth of wheat.
9. The area under cultivation of food grains rose from 99 million hectares in 1980 to 128 million hectares in 1990-91. By the end of 8th plan Indian achieved self- sufficiency in food production.

Explain the relationship between farm size and productivity in Indian agriculture.

1. The productivity in agriculture depends upon, among other things, the size of land holdings and the level of technology.

2. Some people argue that small farms are more productive than the large farms because of intensive cultivation.

3. According to the this productivity per acre in small farms is greater than the large ones. This is known as Inverse relationship between farm size and productivity.

4. But there are other group of economists who argue that large farms are suitable for maximizing profitability of labour with the existing market wage rate.

5. In large farms machines and technology also can be used. Their productivity shall be certainly high when compared to small farms.

6. The agriculture yield from large farms in the advanced countries prove this theory.

7. What is the role of public sector in Indian industrialisation? Is it still relevant?

The role of public sector in Indian industrialization

1. Public sector means the government or its affiliated corporations establishing and maintaining the industries.

2. The Government of India realized the importance of public sector in achieving speedy industrialization.

3. Heavy strategy was implemented.

4. There are 135 public sectors undertaking now and they contribute much to Indian industrialization.

5. The public sector is suitable to establish socialistic pattern of society and also to utilize the man power to the maximum..

6. Public sector created infrastructural facilities and laying foundation for strong industrial base.

7. It was instrumental for decentralization of industries.

8. It created employment opportunities.

9. It helped in the promotion of technical knowledge.

10. It controlled the monopolies of a few families in industrial sector.

11. It reduced the regional imbalances.

12. But of the late public sector incurred heavy losses due to mismanagement corruption and inefficiency of the administrators. Yet public sector is still relevant in the progress of Indian industries. It cannot be dispensed with.

Explain the significance of service sector in Indian economy

Service sector:-

1. Services sector is one of the crucial sectors along with agriculture and industry.

2. If agriculture and industry build the strength of the economy the services sector, indicates the direction of modernisation.

3. Transport and communications, financial institutions, banking and insurance and public administration are included in this sector.

4. Transport sector is crucial to any economy because it helps to widen markets for goods and services by connecting remote parts of a nation.

5. In India long distance transport is dominated by the rail and road transport system.

6. Shipping transport and civil Aviation takes a place next only to the rail and road transport system.

7. Posts and telegraphs, telecommunications, radio broad costing, television and other information systems are also included in communication services.

8. Communication system provides information on new products, new markets and helps to bring together buyers and sellers for effective interaction.

9. Keeping in view of the changing scenario in global competition the government has set an outlay of Rs. 25,000 crores for the tele communication sector in the Eight plan period.

What is the role of banking and financial institutions in India? Will Privatisation
help in realizing the objectives

Financial and banking institutions:-

1. The financial system of India refers to the system of borrowing and lending of
funds by individuals, firms, institutions and the government.

2. Generally, three types of finance are distinguished in the financial system:-
a. Industrial finance:- Funds needed in industry and trade.
b. Agricultural finance:- Finance required in agriculture and allied
c. Government finance: Funds required to support Government

3. The main objective of financial, Insurance, banking and other institutions is to
mobilise savings from the public and transfer them to the needy organizations
Or individuals for productive purposes.

4. Banks, Insurance and other financial institution are part of this financial

5. These financial institutions or banks are there both in public and private

6. Public sector financial institutions can’t fulfil all the needs of the entire system
of economy. Hence private sector is encouraged.

7. All these banks are known as scheduled commercial banks.

8. They fulfil the requirements under the second schedule of RBI Act, 1934.

9. They are governed by the rules and regulations stipulated by the RBI.

What is Green Revolution

Green revolution:-

1. Green revolutions is a new technology and better water management techniques were introduced to improve the productivity in agriculture. It was adopted from 1967-1968.

2. This period was known as Green Revolution. It consisted of the following package.
a. Use of High Yielding Varieties (HYV) of seeds in the production of wheat.
b. Utilisation of fertilizers, pesticides in the crop protection.
c. Better water management for optimum use.

Write short notes on Reserve Bank of India

1. The Reserve Bank of India (RBI) is the Central Bank and Monetary authority in the
2. It Controls and regulates the flow of money and credit in the country.
3. It started functioning from 1935 under the provision of the RBI Act, 1934.

Classify industries on the basis of output

Structure of industry by type of output:

In India four broad categories emerge when classified by type of output:-

1. Basic Industries
2. Capital Goods Industries
3. Intermediate Goods Industries and
4. Consumer Goods Industries

Incidentally, all the four are part of the large scale sector.

The Basic Industries:-

1. The basic industries are those which provide essential inputs to all industries and agriculture.
2. They are iron and steel, coal, chemicals, cement, alluminium, fertilizers and electric power.

The Capital Goods industries:-

1. The capital goods industries produce the machinery and equipment required for all industries and agriculture.

2. Machine tools, engineering goods, electrical equipment and automobiles and the examples.

The Intermediate goods industries:-

1. The Intermediate goods industries consist of those that produce goods which are used in the production process of other goods, rather than for final consumption.

2. Petroleum products, tyre industry, plastics and plastic-based products from part of the intermediate goods industries.

The Consumer goods industries:-

The consumer goods industries produce goods for final consumption such as power products, cosmetics, bicycles, electronic goods like TVs, Tape-Recorders, Textiles, and Watches and so on.

4. Classify industries on the basis of the size of investment.

On the basis of size of investment the industry is classified into three types.
1. The large scale sector with investment of more than 35 lakhs.
2. The small scale sector with investment of not exceeding Rs. 35 lakhs (5 to 35 Lakhs)
3. The tiny scale sector with investment of below 5 lakhs.

Explain the factors that play crucial role in determining the rate of agriculture

1. A few factors play a crucial role in determining the rate of agricultural growth.
2. Land structure and ownership pattern are very crucial in this regard.
3. Further, Land relations and institutional factors also play a great role in this respect.

Expand FERA.

FERA – Foreign Exchange Regulation Act.

What are tertiary occupations

Tertiary Sector generates occupation in such services like in banking, commerce, communications, computers and other professions inside as well as outside the government.

On what basis the industrial structure can be classified

The Industrial structure can be classified on the basis of

1. Type of ownership
2. Size of Investment and
3. Type of output.

What is meant by foreign sector

Foreign sector:-

1. Foreign sector of the industry is defined on the basis of share holding pattern of assets and capital within a firm.

2. The pattern of share holding within a firm is known as Equity.

3. According to Foreign Exchange Regulation Act (FERA) of 1970 any company which allows foreign nationals to participate in its equity holding 40% of the total equity then that firm is treated as belonging to foreign sector.


1. Agriculture, fishing, plantations are included in primary sector.

2. Construction, manufacturing industries comprise secondary sector of the economy.

3. Banking, commerce, communications generate tertiary sector occupations.

4. Proper water management is associated with Green Revolution.

5. Firms with capital investment of not more than Rs. 35 lakhs form part of small scale.

6. Basic industries provide essential inputs to all industries an agriculture.

7. Machinery and equipment are supplied by capital goods industries.
8. Industrial stagnation and declaration was observed during Mid 1960’s to late 1970’s

9. The Central Bank and monetary authority in India is Reserve Bank of India.

10. Sheduled commercial Banks are those which fulfil the conditions stipulated in Second Shedule of RBI Act, 1934.

11. Modemisation represents employment of work force in secondary and tertiary sectors.

12. Green Revolution is closely associated with utlisation of new fertilisers, new pesticides, HYV seeds and proper water resource management.

13. Chemicals and aluminum industries are basic goods industries.

14. The Telecommunication policies of 1994 proposes to increase private investment.

15. The industry, where capital investment does not exceed Rs.5lakhs belongs to tiny scale industries category.

16. The public enterprises operation under the ownership of the state is know as public sector.

17. HYV seeds associated with Green Revolution.

18. Expand FERA Foreign Exchange Regulation Act.

19. RBI was established in 1934.

20. Iron and steel industry is a basic industry.

21. The maximum investment on a unit of small sector is 35 lakhs.

22. The central bank and monetary authority in India is RBI.

23. The investment and a unit of small scale sector in Rs is 5 to 35 lakhs.

24. Working population in Agriculture in Pakistan is 74 percent.

25. RBI controls and regulates the flow of money and credit in the country.

26. Telecommunication policy was introduced in 1994.

27. Financial institutions come under service sector.

28. The pattern of share holding within a firm is known as equity.

29. The foreign banks deal mostly with foreign exchange transactions.

30. Foreign Exchange sRegulation Act (FERA) was introduced in 1970

31. Industries with less than 5 lakhs are called tiny industries.

32. RBI means Reserve Bank of India.