National Income and Sectoral Aspects of the Indian Economy 8th Notes KSEEB Social Science
→ National Income refers to the total value of goods and services produced annually in a country.
→ Simon Kuznets has defined National Income as, ‘‘the net output of commodities and services flowing during the year from the country’s productive system in the hands of the ultimate consumer’s.”
→ National Income indicates the size of the country’s productive system, volume of consumption, savings and investment made in various sectors as well as its transactions with other countries.
→ The average income of the people of a country in a particular year is called Per Capital Income (PCI)
→ Per capital income help us to know the average income and the standard of living of the people.
→ Primary sector consists of all nature based activities suchas agriculture and allied activities.
→ Secondary, sector, also called as manufacturing sector, converts raw materials into finished products.
→ Teritary sector is also called service sector.
Ex: Educational Institutions, telephones, hotels, transport, banking establishments.
→ Service sector is the largest contributor to the national income at 59% and employs about 28% of workers.
→ Industrial development is a pre requisite for faster development of any economy.
→ Small scale industries are which can be set up any where with simple technology, employing fewer number of people and catering to the local market, are considered to be vital components of development.
→ MSMED Micro, small and medium enterprises development.
→ Increase in small industrial activity is considered as essential for the economic growth and development of the country.
→ Many usefulness from small scale Industries they are there employment generation, mobilization of resources and entrepreneurial skill, development of technology, promotes exports etc.
→ Small scale Industries are facing many problems, non availability of raw materials, problem of finance, low technical skill, marketing problems, competition from large scale industries.
→ Our country is mainly depending on agriculture but agriculture facing many problems.
→ Main problem of Agriculture sector is non availability water, decrease, in rainfall.
→ Government has taken many measures to check the problems in agriculture sector.