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of the private sector. Also, collectinggovernment has to bear some of the money from thousands of people who cost. In this way, the government use these facilities is not easy. Even supports both farmers and if they do provide these things they consumers. would charge a high rate for their There are a large number of use. Examples are construction of roads, bridges, railways, harbours, activities which are the primary generating electricity, providing responsibility of the government.The irrigation through dams etc. Thus, government must spend on these. Providing health and education governments have to undertake such heavy spending and ensure that facilitiesforallisoneexample.Wehave these facilities are available for discussed some of these issues in the everyone. first chapter. Running proper schools and providing quality education, There are some activities, which the government has to support.The particularly elementary education, is thedutyofthegovernment.Indias ’ size private sector may not continue their of illiterate population is one of the production or business unless largest in the world. government encourages it. For example, selling electricity at the cost Similarly, we know that nearly half of generation may push up the costs of Indi’ children are malnourished of production of goods in many and a quarter of them are critically industries. Many units, especially ill. We have read about Infant small-scale units, might have to shut Mortality Rates. The infant mortality down. Government here steps in by rate of Odisha (36) or Madhya producing and supplying electricity Pradesh (43) is higher than some of at rates which these industries can the poorest regions of the world. afford. Government has to bear part Government also needs to pay of the cost. attention to aspects of human Similarly, the Government in India development such as availability of buys wheat and rice from farmers at safe drinking water, housing facilities for the poor and food and nutrition. a ‘fair price’. This it stores in its It is also the duty of the government godowns and sells at a lower price to consumersthroughrationshops.You to take care of the poorest and most have read about this in the chapter ignoredregionsofthecountrythrough on Food Security in Class IX. The increased spending in such areas. SUMMING UP In this chapter we have looked at ways of what all can be done for increasing classifying economic activities into some employment opportunities in the country. meaningful groups. One way of doing this Anotherclassificationistoconsiderwhether is to examine whether the activity relates to people are working in organised or the primary, secondary or tertiary sectors. unorganised sectors. Most people are The data for India, for the last thirty years,working in the unorganised sectors and shows that while goods and services protection is necessary for them. We also produced in the tertiary sector contribute lookedatthedifferencebetweenprivateand the most to GDP , the employment remains public activities, and why it is important in the primary sector. We have also seen forpublicactivitiestofocusoncertainareas. 34 U NDERST ANDING ECONOMIC D EVEL OPMENT Reprint 2026-27