How does MGNREGA address rural unemployment?

Guarantees 100 days of wage work per household; builds productive assets (roads, ponds); reduces distress migration; also gives bargaining power to unorganised workers.

Why is disguised unemployment common in Indian agriculture?

Landholdings are small and family labour is over-supplied; adding workers doesn't increase output because there is no additional productive work to do.

All Class 10 Social Science notes

Class 10 Social Science Notes — Chapter 18: Sectors of the Indian Economy

Primary, secondary, tertiary sectors; organised vs unorganised; NREGA.

Detailed NCERT notes

Three sectors:
Primary — directly uses natural resources (agriculture, fishing, mining, forestry).
Secondary — manufacturing/industrial (textiles, steel, food processing).
Tertiary — services (transport, communication, banking, education, healthcare, IT).
Historically, economies shift from primary → secondary → tertiary as they develop.
Employment share vs GDP share in India: primary still employs the largest workforce (~44%) but contributes a smaller share of GDP; tertiary is now the largest contributor to GDP; secondary sits in between.
This mismatch signals disguised unemployment in agriculture (more people than the work needs).
Disguised unemployment: apparent employment but marginal productivity of extra workers is zero — common in agriculture and family businesses.
Ways to create employment: dam-building irrigation projects, cold storage, agro-based industries in rural areas, education/health investment, tourism.
MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act, 2005): legally guarantees 100 days of wage employment per year to rural households → creates productive assets (roads, ponds, tree cover) and reduces distress migration.
Organised vs unorganised sector:
Organised: formal, registered, follows labour laws, salaried employment, benefits like PF, gratuity, paid leave.
Unorganised: unregistered, informal, small units, no protection, low wages, no benefits — includes most of Indian workforce.
Public vs private sector:
Public — government-owned, run for social welfare (railways, defence, education). Provides essential goods often at subsidised rates.
Private — owned by individuals/firms, profit-driven.
Reforms and challenges: skilling workers, formalising jobs, extending social security, urban employment programmes (some states experiment with these).

Formulas & key results

Mind map

Primary → Secondary → Tertiary
Employment share vs GDP share
Disguised unemployment; MGNREGA
Organised/unorganised, public/private

Tricks & shortcuts

Tertiary now largest in GDP; primary still largest in employment.

Common mistakes to avoid

Mixing employment share with GDP share.
Assuming public = inefficient (it often provides essential services).

Competency-based questions & answers

Q. How does MGNREGA address rural unemployment?
A. Guarantees 100 days of wage work per household; builds productive assets (roads, ponds); reduces distress migration; also gives bargaining power to unorganised workers.
Q. Why is disguised unemployment common in Indian agriculture?
A. Landholdings are small and family labour is over-supplied; adding workers doesn't increase output because there is no additional productive work to do.