Sectors of the Indian Economy Class 10 important questions with answers

What comes in the exam

• Sectors of the Indian Economy is in Economics (Understanding Economic Development).
• Almost half the questions are 1-mark MCQs; most of the rest are 3-mark and 5-mark answers, with some 2-mark ones.
• Almost every year you get organised vs unorganised sector, public vs private sector, primary and secondary sectors, and the rising role of the tertiary sector.
• Why GDP counts only final goods, disguised unemployment and ways to create rural jobs, including MGNREGA, also come almost every year.
• Assertion–Reason and case studies are rare.

Top 10 Sectors of the Indian Economy questions from board papers

Real CBSE questions, printed as they appeared. Open each answer to see the marking and the steps.

1. Q1 Very short answer · 2 marks CBSE · 2026

   Why GDP counts final goods

   Why are only final goods and services counted in Gross Domestic Product (GDP) ? Explain.

   Answer and marking

   1. Explain with intermediate goods why final goods are enough. The value of final goods already includes the value of all intermediate goods used to make them. 1 mark
   2. Say what goes wrong if intermediate goods are also counted. Counting only final goods avoids double counting of the same goods. 1 mark

   Answer: Final value includes intermediate goods ; avoids double counting

   Marks: Any two points 1 each

   For full marks: Use the term 'intermediate goods' and the phrase 'double counting'. Keep to 40 words.

   Where students lose marks: Writing 'to save time in counting' is not a reason; the reason is to avoid counting the same value twice.

   CBSE marking scheme

   Any two (2x1): the value of final goods already includes the value of all intermediate goods; to avoid double counting; it reflects the real growth of GDP; any other relevant point.

   Write your answer, send a photo, get it marked in Dhee →
2. Q2 Very short answer · 2 marks CBSE · 2023

   Ways to create rural jobs

   Suggest any two ways to create more employment in the rural sector.

   Answer and marking

   1. Start with irrigation, which lets farmers grow more crops. Better irrigation so farmers can grow two or three crops a year and need more workers. 1 mark
   2. Add small units near villages that use farm produce. Set up honey collection centres and fruit and vegetable processing units in rural areas. 1 mark

   Answer: Better irrigation ; honey collection and food processing units

   Marks: Any two points 1 each

   For full marks: Two different ways, each with a few words on how they make jobs, earn both marks. Keep to 40 words.

   Where students lose marks: Giving two versions of the same idea, such as 'more roads' and 'better roads', counts as only one point.

   CBSE marking scheme

   Any two (2×1): better irrigation for two or three crops a year; better roads, transport and storage; honey collection centres, fruit and vegetable processing units; cottage industries and services with soft loans and marketing support; more infrastructure and manufacturing; any other relevant point.

   Write your answer, send a photo, get it marked in Dhee →
3. Q3 Very short answer · 2 marks CBSE · 2023

   Creating jobs in rural areas

   How to create more employment in rural areas ? Explain with examples.

   Answer and marking

   1. Start with water for farms, a big project that creates work. Build new dams and canals to irrigate farms, so more crops are grown and more people get work. 1 mark
   2. Then add local industries that use farm or forest produce. Set up honey collection centres near forests and units processing potato, rice, tomato and fruits for outside markets. 1 mark

   Answer: New dams and canals for irrigation ; local industries like honey collection and food processing

   Marks: Any two points 1 each

   For full marks: Each point needs an example; the question says 'explain with examples'.

   Where students lose marks: Giving city ideas like more offices or malls misses the question; each measure must create work in rural areas.

   CBSE marking scheme

   Any two (2×1): mega projects — new dams and canals to irrigate farms; tertiary facilities; promoting local industries and services; honey collection centres near forests; processing farm produce (potato, rice, tomato, fruits) for outside markets; tourism, regional crafts, IT services; any other relevant point.

   Write your answer, send a photo, get it marked in Dhee →
4. Q4 Short answer · 3 marks CBSE · 2024

   Why tertiary sector is pivotal

   “Tertiary sector has a pivotal role in the economy of the country.” Support your answer with day-to-day examples.

   Answer and marking

   1. Start with how services help production, with a daily example. Tertiary activities support primary and secondary production, e.g. trucks carry vegetables from farms to markets. 1 mark
   2. Name more services you see every day. It provides services like banking, communication, storage and trade, so it is called the service sector. 1 mark
   3. Add its place in the economy. It has the largest share of GVA in India and employs a large number of people. 1 mark

   Answer: Supports production (trucks to market) ; banking, communication, trade services ; largest share of GVA, many jobs

   Marks: Any three points 1 each

   For full marks: The question wants day-to-day examples; add one to each point.

   Where students lose marks: Listing services like 'bank, hospital' without saying how they support production or people turns three points into one.

   CBSE marking scheme

   Any three (3×1): tertiary activities aid/support production in primary and secondary sectors though they produce no good themselves; provide services like transport, banking, communication, storage, trade (hence 'service sector'); includes essential services like traders and doctors; employs a large number of people; has the highest share of GDP in India; helps bring much-needed foreign reserves; any other relevant point.

   Write your answer, send a photo, get it marked in Dhee →
5. Q5 Short answer · 3 marks CBSE · 2023

   Rising importance of services

   Examine the rising importance of the tertiary sector in India.

   Answer and marking

   1. Begin with the basic services every country needs. The tertiary sector provides basic services like public transport, medical care, electricity, banking and post office. 1 mark
   2. Link growth in farms and factories to more services. Development of agriculture and industry leads to more services such as transport and trade. 1 mark
   3. Show how rising incomes raise demand. As incomes rise, people demand more services, and new IT-based services have become essential. 1 mark

   Answer: Basic services ; growth of agriculture and industry needs services ; rising incomes and new IT services

   Marks: Any three points 1 each

   For full marks: Write three separate reasons why the sector is growing in importance. Naming IT services as new and essential earns a point.

   Where students lose marks: Writing that most Indian workers are now in the tertiary sector is wrong; more than half still work in the primary sector.

   CBSE marking scheme

   Any three (3×1): provides basic services — public transport, medical care, electricity, banking, post office; creates employment even for uneducated and unskilled workers; development of agriculture and industry leads to services such as transport and trade; as incomes rise, demand for services rises; new IT-based services have become important and essential in the past decade; any other relevant point.

   Write your answer, send a photo, get it marked in Dhee →

6. Q6 Case study · 4 marks CBSE · 2025

   Case: Organised sector source

   Read the given source and answer the questions that follow : Organised Sector Kanta works in the organised sector. Organised sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work. They are registered by the government and have to follow its rules and regulations which are given in various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act, etc. It is called Organised Sector because it has some formal processes and procedures. Some of these people may not be employed by anyone but may work on their own, but they too have to register themselves with the government and follow the rules and regulations. (36.1) Mention any one feature of the working conditions of organised sector. (1) (36.2) Explain any one benefit provided by the employers to the organised sector employees. (1) (36.3) Why is it necessary for all self-employed people to register with the government ? (2)

   Answer and marking

   1. (36.1) Read the source's first line about the terms of employment. Terms of employment are regular, so people have assured work. 1 mark
   2. (36.2) Name one benefit and say what it gives the worker. Paid leave: the worker gets paid even on days of leave and holidays. 1 mark
   3. (36.3) Give the first reason: rules must apply to them too. They register so that they also follow the government's rules and regulations. 1 mark
   4. Give a second, separate reason. Registration helps the government build a database of such workers. 1 mark

   Answer: (36.1) Regular terms, assured work ; (36.2) Paid leave ; (36.3) To follow government rules ; to build a database

   Marks: (36.1) 1 · (36.2) 1 · (36.3) Any two points 1 each

   For full marks: Read the source first; (36.3) needs two separate reasons for two marks.

   Where students lose marks: In (36.2), writing a feature like 'fixed hours' instead of a benefit like paid leave loses the mark.

   CBSE marking scheme

   (36.1) Any one: regular terms of employment; fixed working hours; assured work; any other relevant point. (36.2) Any one: paid leave; minimum wages; any other relevant point. (36.3) Any two, 1 each: so that the self-employed comply with government rules and regulations; helps the government create a database; any other relevant point.

   Write your answer, send a photo, get it marked in Dhee →
7. Q7 Long answer · 5 marks CBSE · 2026

   Public vs private with examples

   Explain with examples the differences between the public and private sectors of the Indian Economy.

   Answer and marking

   1. Begin with who owns the assets. Public sector assets are mostly owned by the government; private sector assets are owned by individuals or companies. 1 mark
   2. Compare the aim that guides each sector. The private sector is guided by profit; the public sector is guided by people's welfare. 1 mark
   3. Say which sector takes up very costly work. Activities needing huge spending, like infrastructure, are taken up by the public sector, which has access to huge funds. 1 mark
   4. Compare what each will do at a reasonable cost. The private sector will not provide many things society needs at a reasonable cost; the public sector will. 1 mark
   5. End with examples of each, as the question asks. Examples: BHEL and Bharat Electronics (public); Reliance and TISCO (private). 1 mark

   Answer: Government vs private ownership ; welfare vs profit ; costly infrastructure by public sector ; reasonable cost vs not ; BHEL vs TISCO

   Marks: Any five points 1 each

   For full marks: The question says 'with examples', so keep one point for named examples of both sectors. Write each difference as a pair.

   Where students lose marks: Giving examples on the wrong side, such as Reliance as public, loses that mark.

   CBSE marking scheme

   Any five, 1 each: (i) public sector assets are mostly government-owned, private sector assets owned by individuals or companies; (ii) private sector is guided by profit, public sector by people's welfare; (iii) high-spending activities are taken up by the public, not the private sector; (iv) infrastructure is developed by the public sector, which has access to huge funds; (v) the private sector will not provide many things society needs at reasonable cost, the public sector will; (vi) many activities are the government's primary responsibility; (vii) examples: Reliance, TISCO (private); BHEL, Bharat Electronics (public); (viii) any other relevant point.

   Write your answer, send a photo, get it marked in Dhee →
8. Q8 Long answer · 5 marks CBSE · 2026

   Growing role of tertiary sector

   "The contribution of the tertiary sector to the Indian economy is continuously increasing." Explain the statement by giving appropriate examples.

   Answer and marking

   1. Start with the big trend: compare how fast each sector's production grew. Over forty years production rose in all three sectors, but it rose the most in the tertiary sector. 1 mark
   2. Say what this did to the tertiary sector's place in total output. The tertiary sector's share in GVA has increased many times; it is now the largest producing sector. 1 mark
   3. Give examples of basic services that every country needs. Basic services such as schools, hospitals and post offices are part of the tertiary sector and add to the economy. 1 mark
   4. Show how services help the other two sectors grow. Expansion of transport, storage and banking supports primary and secondary activities. 1 mark
   5. Add a modern example that has widened jobs and production. Services based on information and communication technology have grown fast, increasing employment and production. 1 mark

   Answer: Most growth in tertiary production ; largest share in GVA ; basic services like schools, hospitals ; transport, storage, banking support other sectors ; IT services growing

   Marks: Any five points 1 each

   For full marks: Write five separate points, each with an example of a service. 'Explain' needs a reason, not just the name of a service.

   Where students lose marks: Repeating 'tertiary sector is growing' in five ways gives one point only; each point needs a different reason or example.

   CBSE marking scheme

   Any five, 1 each: (i) over forty years production rose in all sectors but most in the tertiary sector; (ii) its share in GVA has increased manifold; (iii) basic services — schools, hospitals, post offices — contribute to the economy; (iv) transport, storage, banking expansion support primary and secondary activities; (v) it employs a large workforce; (vi) information and communication technology has widened employment and production; (vii) any other relevant point.

   Write your answer, send a photo, get it marked in Dhee →
9. Q9 Long answer · 5 marks CBSE · 2025

   Distinguish public and private

   Distinguish between public and private sector of economy with examples.

   Answer and marking

   1. Begin with who owns the assets. Public sector: the government owns most assets and provides services. Private sector: individuals or companies own them. 1 mark
   2. Give an example of each, as the question asks. Examples: Indian Railways, BHEL (public); TISCO, Reliance Industries (private). 1 mark
   3. Compare the aim and how services are paid for. The public sector does not work only for profit and is funded by taxes; the private sector is guided by profit, and we pay for its services. 1 mark
   4. Compare who gives needed services at a fair price. The government provides services needed by all; the private sector does not provide them at a reasonable price. 1 mark
   5. Compare who can spend on big works. The government can spend large sums on roads, bridges, railways, harbours, electricity and dams; private companies cannot. 1 mark

   Answer: Government vs private ownership ; Railways, BHEL vs TISCO, RIL ; welfare and taxes vs profit ; services for all vs not ; big infrastructure vs cannot

   Marks: Any five points 1 each

   For full marks: Write each difference as a public-vs-private pair, with one point for named examples. Five pairs earn five marks.

   Where students lose marks: Giving examples on the wrong side, such as BHEL as private, loses that mark.

   CBSE marking scheme

   Any five, 1 each (public vs private): government owns most assets and provides services vs ownership with private individuals/companies; e.g. Indian Railways, BHEL vs TISCO, RIL; not just profit – funded by taxes vs guided by profit, we pay for services; government provides services needed by all vs private does not provide them at reasonable price; can spend large sums on roads, bridges, railways, harbours, electricity, dams vs cannot; services for everyone vs not for everyone; any other relevant point.

   Write your answer, send a photo, get it marked in Dhee →
10. Q10 Long answer · 5 marks CBSE · 2024

    Why protect unorganised workers

    “There is a need for protection and support of the workers in the unorganised sector.” Examine the statement with examples.

    Answer and marking

    1. Start with the laws, which exist but are not followed for these workers. Rules and regulations exist but are hardly followed in the unorganised sector. 1 mark
    2. Add the pay problem, with an example from the book. Jobs are low-paid, e.g. Kamal, a daily wage labourer in a grocery shop, gets no allowances apart from his wages. 1 mark
    3. Show that work comes and goes. Jobs are not regular, and there is no provision for overtime. 1 mark
    4. Add leave and job security, as in Kamal's case. There is no paid leave or sick leave, and employment is not secure; the worker can be asked to leave anytime. 1 mark
    5. End with why protection matters for the whole country. Protecting these workers is necessary for economic and social justice and inclusive development. 1 mark

    Answer: Rules not followed ; low pay ; irregular work, no overtime ; no paid leave, no security ; needed for justice and inclusive growth

    Marks: Any five points 1 each

    For full marks: The question says 'with examples', so tie at least one point to a worker such as a daily wage labourer. Five separate points earn five marks.

    Where students lose marks: Writing 'low pay' and 'poor wages' as two points counts once; each of the five points needs a different problem.

    CBSE marking scheme

    Any five, 1 each: rules and regulations exist but are hardly followed; jobs are low-paid; jobs are not regular; no provision for overtime; no paid leave or sick leave; employment is not secure; protecting these workers is necessary for economic and social justice and inclusive development; any other relevant point.

    Write your answer, send a photo, get it marked in Dhee →

Free 10-question test: Sectors of the Indian Economy

MCQ and Assertion–Reason questions from CBSE papers. About 10 minutes. Your score shows straight away.

Common mistakes in Sectors of the Indian Economy

How to write for full marks

• For 'differentiate' questions, use a two-column table or write pairs ('Public: … ; Private: …'). Give as many pairs as the marks.
• Count the marks: three points for 3 marks, five for 5 marks. Keep 3-mark answers within 60 words and 5-mark answers within 120.
• Use the book's key words in each point: regular terms of employment, job security, guided by profit, people's welfare, double counting.
• For 'explain with an example', give the idea, then one example: five family members working a small plot where two could leave and output would not fall (disguised unemployment).
• When the scheme follows an older book, use your book's years and words: the sector graphs run from 1977-78 to 2017-18.

Questions students ask