Friday, 29 January 2016

Indian Economy And It's Features

Classifications of Economy:-

In Indian economy introduction, the sectors of economy based on other basis is also required to get a
clear picture of the strengths of Indian Economy.
1.Organized Sector: The sector which carries out all activity through a system and follows the law of
the land is called organized sector. Moreover, labour rights are given due respect and wages are as per
the norms of the country and those of the industry. Labour working organized sector get the benefit of
social security net as framed by the Government. Certain benefits like provident fund, leave
entitlement, medical benefits and insurance are provided to workers in the organized sector. These
security provisions are necessary to provide source of sustenance in case of disability or death of the
main breadwinner of the family without which the dependent will face a bleak future.
2.Unorganized Sector: The sectors which evade most of the laws and dont follow the system come
under unorganized sector. Small shopkeepers, some small scale manufacturing units keep all their
attention on profit making and ignore their workers basic rights. Workers dont get adequate salary and
other benefits like leave, health benefits and insurance are beyond the imagination of people working
in unorganized sectors.
3.Public Sector: Companies which are run and financed by the Government comprises the public
sector.After independence India was a very poor country. India needed huge amount of money to set up
manufacturing plants for basic items like iron and steel, aluminium, fertilizers and cements.
Additional infrastructure like roads, railways, ports and airports also require huge investment. In
those days Indian entrepreneur was not cash rich so government had to start creating big public sector
enterprises like SAIL(Steel Authority of India Limited), ONGC (Oil & Natural Gas Commission).
4.Private Sector: Companies which are run and financed by private people comprise the private
sector.Companies like Hero Honda, Tata are from private sectors.

Sectors of Economy : Primary, Secondary, Tertiary,

Quaternary and Quinary

Primary activities
Primary activities are directly dependent on environment as these refer to utilisation of earths
resources such as land, water, vegetation, building materials and minerals. It, thus includes,
hunting and gathering, pastoral activities, fishing, forestry, agriculture, and mining and quarrying.
People engaged in primary activities are called red-collar workers due to the outdoor nature of their
work.
Secondary activities
Secondary activities add value to natural resources by transforming raw materials into valuable
products. Secondary activities, therefore, are concerned with manufacturing, processing and
construction (infrastructure) industries.
People engaged in secondary activities are called blue collar workers.
Tertiary activities
Tertiary activities include both production and exchange. Theproduction involves the provision of
services that are consumed. Exchange, involves trade, transport and communication facilities that
are used to overcome distance.
Tertiary jobs = White collar jobs.
Quaternary activities
Quaternary activities are specialized tertairy activities in the Knowledge Sector which demands a
separate classification. There has been a very high growth in demand for and consumption of
information based services from mutual fund managers to tax consultants, software developers and
statisticians. Personnel working in office buildings, elementary schools and university classrooms,
hospitals and doctors offices, theatres, accounting and brokerage firms all belong to this category

of services. Like some of the tertiary functions, quaternary activities can also be outsourced. They are
not tied to resources, affected by the environment, or necessarily localised by market.
Quinary activities
Quinary activities are services that focus on the creation, re-arrangement and interpretation of new
and existing ideas; data interpretation and the use and evaluation of new technologies. Often referred
to as gold collar professions, they represent another subdivision of the tertiary sector representing
special and highly paid skills of senior business executives, government officials, research scientists,
financial and legal consultants, etc. Their importance in the structure of advanced economies far
outweighs their numbers.The highest level of decision makers or policy makers perform quinary
activities.
Quinary = Gold collar professions.