Sectors of the Indian Economy Test - 2

GDP(Gross Domestic Product) is total value of final goods and services produced in each sector in a period of time. 

The primary sector includes all those activities the end purpose of which consists in exploiting natural resouces. Cotton is a natural resource and cultivated by the agricultural sector which is the primary sector.

Cloth is made in industries, let it be a power loom or handloom but both are a part of secondary sector. Therefore manufacturing clothes is the activity of secondary sector. 

The service sector consists of the production of services instead of end products. Banking is activity of tertiary sector which also includes insurance and investment management.

The tertiary sector consists of industries which provide a service, fishing does not provide any service and is an activity of primary sector. The rest of the activities are of tertiary sector.

Warehousing is the act of storing goods that will be sold or distributed later. It is a tertiary sector activity and rest are of secondary sector.

Underemployment is the under-use of a worker due to a job that does not use the worker's skills, or is part time, or leaves the worker idle. Examples include holding a part-time job despite desiring full-time work, and overqualification, where the employee has education, experience, or skills beyond the requirements of the job.

The agricultural industry is the largest employer in India's economy and it is an example of primary industry. Therfore primary sector is the largest employer in India and  employees almost half of the country’s population.

Tertiary sector has largest share in GDP as per the year 2013-14 which was 68%. While, this sector has witnessed highest relative growth in terms of GDP, it has not led to commensurate growth in employment. 

 Underemployment is a condition where there are too many workers who are employed in a particular job relative to the number of workers who are actually required to do that job. Hence, workers are inefficiently employed in a situation of underemployment. This is mainly found in the agricultural sector as there are often too many people who are working to cultivate a particular plot of farmland. The particular farmland may not be able to support so many workers. So, even if few people are moved out , production will not affected.