Unit 4 Ch 2 : Sectors of the Indian Economy — Social Studies STD 10 — Question

How is tertiary sector different from the other two sectors of economic activities? Explain.

Which demerits are associated with private sector?

Why are demand deposits considered as money?

Complete the table to show how sectors are dependent on each other.

Serial No.	Example	What Does This Show
1	Imagine what would happen if farmers refuse to sell sugarcane to a particular sugar mill. The mill will have to shut down.	This is an example of the secondary or industrial sector being dependent on the primary.
2	Imagine what would happen to cotton cultivation if companies decide not to buy from the Indian market and import all cotton they need from other countries. Indian cotton cultivation will become less profitable and the farmers may even go bankrupt, if they cannot quickly switch to other crops. Cotton prices will fall.
3	Farmers buy many goods such as tractors, pumpsets, electricity equipments, pesticides and fertilizers. Imagine what would happen if the price of fertilizers or pumpsets go up. Cost of cultivation of the farmers will rise and their profits will be reduced.
4	People working in industrial and service sector need food. Imagine what would happen if there is a strike by transporters and lorries refuse to take vegetables, milk, etc from rural areas. Food will become scarce in urban areas whereas farmers will be unable to sell their products.

Underline the various uses of credit in Sonpur in the passages.
Besides banks, the other major source of cheap credit in rural areas are the cooperative societies (or cooperatives). Members of a cooperative pool their resources for cooperation in certain areas. There are several types of cooperatives possible such as farmers cooperatives, weavers cooperatives, industrial workers cooperatives, etc. Krishak Cooperative functions in a village not very far away from Sonpur. It has 2300 farmers as members. It accepts deposits from its members. With these deposits as collateral, the Cooperative has obtained a large loan from the bank. These funds are used to provide loans to members. Once these loans are repaid, another round of lending can take place. Krishak Cooperative provides loans for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses.

In recent years how our markets have been transformed? Explain with examples.

Which Indian companies have become MNCs with the competition in globalisation?

What do you mean by liberalisation of foreign trade?

“Poor households still depend on informal sources of credit.” Support the statement with examples.

How do Multi-National Companies manage to keep the cost of production Of their goods low? Explain with examples.