NCERT Economics Class 10 | Division of Sectors As Organised and Unorganised Notes
Topic & sub-topics covered: Division of Sectors As Organised and Unorganised, How to Protect Workers in the Unorganised Sector?: Sectors of The Indian Economy (All single detail notes are exam-oriented).
We have discussed in-depth and exam-oriented pointers that can be asked in the board exam of class 10th about “Division of Sectors As Organised and Unorganised, How to Protect Workers in the Unorganised Sector?” which is taken from the NCERT Economics notes for class 10th chapter no. 2 “Sectors of The Indian Economy“.
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NCERT Economics Class 10th Chapter 2 Sectors of Indian Economy Class 10 pdf
Embark on a journey to understand the intricate dynamics of economic development with NCERT Economics notes Chapter 2 Class 10th Notes. Delving into the essence of “Sectors of The Indian Economy,” these notes offer a comprehensive overview of key concepts, theories, and real-world examples.
Available in PDF format, these notes provide a convenient and accessible resource for Class 10th students to enhance their understanding, facilitate revision, and excel in their studies. Download NCERT Economics Notes Chapter 2 Class 10th Notes PDF now and unlock the keys to comprehending context.
Division of Sectors As Organised and Unorganised
1. Classification Based on Employment Conditions:
- Activities in the economy can be classified based on employment conditions and work arrangements.
2. Comparison of Kanta and Kamal:
- Kanta works in an office with fixed hours, a regular salary, a provident fund, and other allowances, enjoying paid holidays and formal employment terms.
- Kamal, a daily wage labourer, lacks job security, fixed working hours, or benefits like paid leave, and can be asked to leave without notice.
3. Organised Sector:
- The organised sector comprises enterprises with regular employment terms, governed by government regulations such as the Factories Act, Minimum Wages Act, and Payment of Gratuity Act.
- Workers in this sector enjoy job security, fixed working hours, and benefits like paid leave, provident fund, gratuity, medical benefits, and pensions upon retirement.
4. Unorganised Sector:
- The unorganised sector consists of small, scattered units with minimal government control, where rules and regulations are often disregarded.
- Jobs in this sector are low-paid, irregular, and lack benefits such as overtime pay, paid leave, or job security.
5. Characteristics of Unorganised Sector Jobs:
- Employment in the unorganised sector is insecure, with workers being hired and fired at the employer’s discretion.
- Workers do not receive benefits like overtime pay, paid leave, or provisions for sickness leave.
6. Variety of Unorganised Sector Jobs:
- The unorganised sector includes self-employed individuals engaged in street vending, repair work, and farming, as well as casual labourers hired on a temporary basis.
7. Lack of Compliance with Regulations:
- While there are rules and regulations for the unorganised sector, they are often not followed, leading to exploitative working conditions and a lack of job security.
8. Impact of Seasonal Variations:
- Workers in the unorganised sector are particularly vulnerable to fluctuations in demand, such as seasonal changes, which may result in layoffs or reduced work hours.
9. Government Intervention:
- Government regulations aim to protect workers’ rights and ensure fair employment practices, particularly in the organised sector, through laws and enforcement mechanisms.
10. Need for Formalization and Regulation:
- Encouraging formalization and regulation of employment in the unorganised sector is essential to safeguard workers’ rights and improve working conditions.
How to Protect Workers in the Unorganised Sector?
1. Organised Sector Employment:
- Organised sector jobs are highly desirable due to better working conditions, regular salaries, and benefits.
- However, employment opportunities in this sector have been expanding slowly over time.
2. Presence of Organised Sector in Unorganised Sector:
- Many enterprises from the organised sector operate within the unorganised sector to evade taxes and bypass labour laws, leading to the exploitation of workers.
3. Challenges in Unorganised Sector Employment:
- Workers in the unorganised sector often face low wages, irregular payment, lack of job security, and absence of benefits.
4. Impact of Job Loss in Organised Sector:
- Since the 1990s, there has been a trend of workers losing jobs in the organised sector, forcing them to seek employment in the unorganised sector with lower earnings.
5. Support Needed for Unorganised Sector Workers:
- There is a crucial need for protection and support for workers in the unorganised sector to ensure fair wages, job security, and other benefits.
6. Vulnerable Groups in Rural Areas:
- In rural areas, the unorganised sector includes landless agricultural labourers, small and marginal farmers, sharecroppers, and artisans, comprising a significant portion of the population.
7. Support for Rural Unorganised Sector:
- Rural unorganised sector workers require support such as timely access to seeds, agricultural inputs, credit, storage facilities, and marketing outlets to improve their livelihoods.
8. Composition of Urban Unorganised Sector:
- In urban areas, the unorganised sector consists of workers in small-scale industries, construction, trade, transport, street vendors, garment makers, rag pickers, etc.
9. Support for Urban Unorganised Sector:
- Government support is essential for small-scale industries to procure raw materials and market their products, while casual workers in urban areas need protection and support.
10. Representation of Marginalized Communities:
- A significant proportion of workers from scheduled castes, tribes, and backward communities are employed in the unorganised sector, facing not only economic challenges but also social discrimination.
11. Need for Economic and Social Development:
- Providing protection and support to workers in the unorganised sector is crucial for both economic development and social justice.
Next & Previous Topics of NCERT/CBSE Economics Class 10 Chapter 2: Sectors of The Indian Economy
FAQ
Q1. What are the key differences between organised and unorganised sectors?
Answer: Organised sectors are characterized by formal structures, regulated employment, and adherence to labour laws, while unorganised sectors typically lack formal organization, operate informally, and may not comply with labour regulations.
Q2. Can you provide examples of industries within the organised sector?
Answer: Certainly! Industries such as manufacturing, finance, telecommunications, and IT services are typically part of the organised sector due to their structured operations, legal compliance, and formal workforce.
Q3. How does the division between organised and unorganised sectors impact employment patterns?
Answer: The division significantly influences employment dynamics. Organised sectors offer stable employment with benefits and protections, whereas the unorganised sector often involves informal, precarious work arrangements with fewer benefits and job security.
Q4. What role does government regulation play in the organised and unorganised sectors?
Answer: Government regulations in the organised sector aim to ensure labor rights, safety standards, and fair wages, promoting worker welfare and industry stability. However, regulations may be less stringent or enforced in the unorganised sector, leading to challenges such as exploitation and inequality.
Q5. How do businesses in the organised sector contribute to economic growth and development?
Answer: Organised sector businesses drive productivity, innovation, and competitiveness, fostering economic growth through efficient production processes, investment in technology, and adherence to quality standards. Their formal operations also facilitate tax compliance and revenue generation for government initiatives.
Q6. What are some challenges faced by the unorganised sector, and how can they be addressed?
Answer: Challenges in the unorganised sector include lack of access to credit, limited market opportunities, and vulnerability to economic shocks. Addressing these issues requires policy interventions such as financial inclusion initiatives, skill development programs, and social safety nets to support informal workers and promote inclusive growth.