Class 10 Social Science Sectors of the Indian Economy (Economics) Practice Paper — primary, secondary & tertiary sectors, GDP. With solutions. CBSE 2026-27. Free PDF.
This free Practice Paper for CBSE Class X Social Science, Chapter 20: Sectors of the Indian Economy (Economics), contains exam-pattern practice questions covering the full chapter, with marks distribution like the real paper. It has been prepared by Sumeet Sahu at Unique Study Point, Indore, strictly following the latest NCERT syllabus for Session 2026-27.
Class: X Subject: Social Science Session: 2025-26 Chapter: 02 - Sectors of the Indian Economy Time: 1½ Hours Max. Marks: 40
1. All questions are compulsory.
2. This question paper contains 20 questions divided into five sections A, B, C, D and E.
3. Section A contains 10 MCQs of 1 mark each.
4. Section B contains 4 questions of 2 marks each.
5. Section C contains 3 questions of 3 marks each.
6. Section D contains 1 question of 5 marks.
7. Section E contains 2 Case Study Based questions of 4 marks each.
Q1. Which one of the following activities belongs to the tertiary sector?
(a) Growing wheat
(b) Making sugar from sugarcane
(c) Working as a doctor in a hospital
(d) Manufacturing clothes
Q2. The sum of production in the primary, secondary, and tertiary sectors gives:
(a) National Income
(b) Gross Domestic Product (GDP)
(c) Per capita income
(d) Net National Product
Q3. Which of the following statements about the unorganised sector is FALSE?
(a) Jobs are not secure
(b) Workers get regular salary
(c) There are no paid leaves
(d) Working hours are not fixed
Q4. If the government fails to provide employment under MGNREGA, what must it do?
(a) Provide free food
(b) Give unemployment allowance
(c) Provide free education
(d) Give compensation
Q5. Which of the following is a natural product from the primary sector?
(a) Cloth
(b) Bricks
(c) Milk
(d) Furniture
Q6. Reliance Industries Limited is an example of which sector based on ownership?
(a) Public sector
(b) Private sector
(c) Joint sector
(d) Cooperative sector
Q7. Which sector directly uses natural resources for production?
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) Service sector
Q8. The government sells electricity at lower rates to industries. Why?
(a) To earn profit
(b) To support industries and prevent closures
(c) To increase taxes
(d) To promote exports only
Q9. Nearly what percentage of rural households in India are small and marginal farmers?
(a) 50%
(b) 60%
(c) 70%
(d) 80%
Q10. Which of the following is NOT a feature of the organised sector?
(a) Registered with government
(b) Follows Factories Act
(c) Provides provident fund
(d) Irregular employment
Q11. What is the difference between economic activities in the primary and secondary sectors?
Q12. Why is GDP considered important? What does it measure?
Q13. State two ways in which the government supports farmers and consumers through public sector activities.
Q14. Give two examples showing how sectors are interdependent.
Q15. "Not all of the service sector is growing equally well in India." Explain this statement with examples.
Q16. Describe the problems faced by workers in the unorganised sector. Who are the vulnerable groups that need protection in rural and urban areas?
Q17. How can the problem of underemployment in agriculture be solved? Suggest three practical measures.
Q18. Explain the historical changes that have taken place in the importance of sectors in developed countries. What pattern of change has been observed in India? Compare and contrast the changes in production and employment patterns in India.
Q19. Read the following case study and answer the questions that follow: A village panchayat decided to implement MGNREGA by constructing small check dams and digging ponds to harvest rainwater. About 200 workers were employed for this work for 100 days. Each worker was paid Rs 300 per day. After these structures were built, farmers could store rainwater during monsoon and use it for irrigation during dry months. This helped them grow vegetables in addition to their regular crops. The increased production led to better income for farmers. Some farmers also started dairy and poultry as additional sources of income.
(a) How did MGNREGA help in this village? Explain with reference to employment and development. (2 marks)
(b) How did the work undertaken under MGNREGA help in increasing production from land in the future? (2 marks)
Q20. Read the following case study and answer the questions that follow: Madhya Pradesh has rich forests. The government started honey collection centers in forest villages. Local tribal people collect wild honey from forests and sell it at these centers at fair prices. The honey is then processed, packaged, and sold in cities under brand names. This initiative has created employment for about 10,000 tribal families. They earn additional income without harming the forest. Some women's self-help groups have also started making products like beeswax candles which are sold through these centers.
(a) Identify the primary, secondary, and tertiary sector activities in this case study. (2 marks)
(b) How has this initiative helped in creating employment while protecting the environment? (2 marks) DETAILED ANSWER KEY - PAPER 04
Ans 1.
(c) Working as a doctor in a hospital Doctors provide medical services which do not produce goods. This is a tertiary sector activity. All other options produce goods (primary or secondary sectors). Ans 2.
(b) Gross Domestic Product (GDP) GDP is the value of all final goods and services produced within a country during a particular year. It is the sum of production in all three sectors. Ans 3.
(b) Workers get regular salary Workers in the unorganised sector do NOT get regular salary. They get irregular and low wages. All other statements are true about the unorganised sector.
Ans 4.
(b) Give unemployment allowance Under MGNREGA, if the government fails to provide employment, it will give unemployment allowances to the people. This makes the Right to Work legally enforceable. Ans 5.
(c) Milk Milk is a natural product from the primary sector (dairy farming). All other options are manufactured products from the secondary sector. Ans 6.
(b) Private sector Reliance Industries Limited (RIL) is owned by private individuals and is a private sector company. Ans 7.
(a) Primary sector The primary sector directly uses natural resources like land, water, forests, and minerals for production.
Ans 8.
(b) To support industries and prevent closures Government sells electricity at subsidized rates to support industries, especially small-scale units, so they can afford it and continue production. Ans 9.
(d) 80% Nearly 80% of rural households in India are small and marginal farmers who need support through timely delivery of seeds, credit, and marketing facilities. Ans 10.
(d) Irregular employment Irregular employment is a feature of the unorganised sector, not the organised sector. Organised sector has regular employment with fixed terms.
Ans 11. Primary vs Secondary sector activities Primary Sector: • Activities that are undertaken by directly using natural resources • Products are natural products • Example: Growing cotton depends on natural factors like rainfall and sunshine. Cotton is a natural product. Secondary Sector: • Activities in which natural products are changed into other forms through manufacturing • Products are not produced by nature but have to be made • Example: Using cotton fiber, we spin yarn and weave cloth through manufacturing processes.
Cloth is a manufactured product. Ans 12. Importance of GDP What GDP measures: • GDP is the value of all final goods and services produced within a country during a particular year • It is calculated by adding the value of production in primary, secondary, and tertiary sectors Why GDP is important: • GDP shows how big the economy is • It indicates the total production and economic activity in a country • Helps compare economic performance across years • Used to compare economies of different countries • Helps in economic planning and policy making Ans 13. Government support to farmers and consumers
1. Procurement and distribution of food grains: • Government buys wheat and rice from farmers at a 'fair price' (Minimum Support Price) • This ensures farmers get reasonable rates for their produce • Government stores these in godowns and sells at a lower price to consumers through ration shops • This helps consumers get food at affordable prices • Government bears part of the cost in this process, supporting both farmers and consumers
2. Subsidized electricity: • Government sells electricity at rates lower than cost of generation • This helps farmers run pumpsets for irrigation at affordable rates • Also helps industries, especially small-scale units, keep production costs low • Prevents closure of units that cannot afford market rates Ans 14. Examples of interdependence of sectors Example 1: • Sugarcane farmers (primary sector) sell their produce to sugar mills (secondary sector) • If farmers refuse to sell sugarcane, the mill will have to shut down • This shows secondary sector's dependence on primary sector Example 2:
• People working in industrial and service sectors need food • If transporters go on strike and lorries refuse to take vegetables and milk from rural areas to cities • Food will become scarce in urban areas • Farmers will be unable to sell their products • This shows how all sectors depend on tertiary sector services (transport)
Ans 15. Unequal growth in service sector The service sector in India employs many different kinds of people, and not all parts are growing equally well:
1. Highly skilled and educated workers (Growing well): • At one end, there are limited number of services that employ highly skilled workers • Examples: IT professionals, software engineers, doctors in private hospitals, lawyers, chartered accountants, management consultants • These services are growing rapidly • Workers earn high salaries and have good working conditions • Example: Call centers, software companies, professional services based on information technology
2. Low-skilled workers (Not growing well): • At the other end, there are very large number of workers in poorly-paid service jobs • Examples: Small shopkeepers, repair persons, transport workers, street vendors, domestic workers, casual laborers • These people barely manage to earn a living • They perform these services because no alternative opportunities are available • This part is not growing in terms of quality or income
3. Implications: • Only a part of the service sector is growing in importance and providing good employment • Large number of workers are in service sector but are underemployed or poorly employed • This shows that growth in GDP doesn't automatically mean quality employment for all Ans 16. Problems of unorganised sector workers and vulnerable groups Problems faced by unorganised sector workers:
1. Employment related problems: • Jobs are low-paid and often not regular • No job security - can be removed without notice • Working hours are long and irregular • No provision for overtime payment
2. Lack of benefits: • No paid leave or holidays • No medical benefits or insurance • No provident fund or gratuity • No pension after retirement • No leave due to sickness
3. Working conditions: • Poor and unsafe working conditions • No facilities like drinking water or rest areas • Often exploitative situations • Wages below minimum wage levels Vulnerable groups in rural areas: • Landless agricultural laborers • Small and marginal farmers (nearly 80% of rural households) • Sharecroppers • Artisans like weavers, blacksmiths, carpenters, goldsmiths • These need support through timely seeds, credit, storage, and marketing facilities Vulnerable groups in urban areas: • Workers in small-scale industry • Casual workers in construction • Trade and transport workers • Street vendors • Head load workers • Garment makers • Rag pickers • Domestic workers • These need protection through minimum wages, social security, and better working conditions Ans 17. Solving underemployment in agriculture
1. Provide irrigation facilities: • Government should invest in dams, canals, and wells • Banks can provide loans to farmers for irrigation • Example: If Laxmi's two-hectare plot gets irrigation through a well, she can grow wheat in rabi season in addition to kharif crops • One hectare of wheat provides employment for 50 days to two workers • Multiple cropping creates more employment throughout the year • This allows surplus family members to work productively on the same land
2. Develop rural infrastructure and industries: • Set up agro-processing industries in semi-rural areas • Example: Dal mills for processing pulses, food processing units for vegetables, honey collection centers • Build better rural roads and storage facilities • These create employment opportunities outside agriculture • Surplus workers from farms can take up work in these industries • This is more effective than forcing people to migrate to distant cities
3. Provide cheap credit and support services: • Banks should provide loans at reasonable interest rates (instead of high rates charged by moneylenders) • Farmers can use credit to buy seeds, fertilizers, equipment, pumpsets • This improves productivity and creates more work • Government should ensure timely delivery of agricultural inputs • Provide better marketing outlets and storage facilities • This increases income and enables farmers to diversify into allied activities like dairy, poultry, horticulture • These allied activities provide round-the-year employment and reduce underemployment
Ans 18. Historical changes in sectors - Developed countries vs India PART A: Historical Changes in Developed Countries Stage 1 - Dominance of Primary Sector: • At initial stages of development, primary sector was the most important • Most goods produced were natural products from agriculture, fishing, mining • Most people were employed in primary sector • Both production and employment were concentrated in this sector Stage 2 - Rise of Secondary Sector: • Over a long time (more than hundred years), new methods of manufacturing were introduced • Factories came up and started expanding • People who earlier worked on farms began to work in factories • They were often forced to do so (as studied in history) • People began to use more goods produced in factories at cheap rates • Secondary sector gradually became most important in total production and employment • A shift had taken place from primary to secondary sector Stage 3 - Dominance of Tertiary Sector:
• In the past 100 years, further shift from secondary to tertiary sector • Service sector has become the most important in terms of total production • Most working people are also employed in service sector • This is the general pattern observed in developed countries PART B: Pattern Observed in India Changes in Production Pattern (GVA): • In 1977-78, primary sector contributed about 40% to GVA (highest) • By 2017-18, tertiary sector has become largest, contributing about 54% • Primary sector's share declined to about 17% • Secondary sector's share increased but less dramatically • India has followed the pattern of developed countries in production • The shift from primary to tertiary has been very clear PART C: Comparison of Production and Employment Patterns in India Key Observation - Mismatch:
A remarkable fact about India is that while there has been a change in the share of sectors in GVA, a similar shift has not taken place in employment. Employment Pattern: • In 1977-78: Primary sector employed about 71% workers • In 2017-18: Primary sector still employs about 44% workers (highest) • Tertiary sector employment rose from 18% to 31% • Secondary sector employment remains relatively small • More than half the workers continue to work in primary sector Comparison - Production vs Employment:
1. Primary Sector: • Production share: Only 17% of GVA (2017-18) • Employment share: Still 44% of workforce • Implication: Workers in agriculture are producing much less than their potential • This indicates underemployment or disguised unemployment
2. Tertiary Sector: • Production share: 54% of GVA (highest) • Employment share: Only 31% • While production rose 14 times, employment rose only 5 times • Not enough quality jobs created despite high growth
3. Secondary Sector: • Production rose 9 times, but employment rose only 3 times • Shows insufficient job creation in industries Why Employment Shift Didn't Happen: • Not enough jobs were created in secondary and tertiary sectors • Industrial output increased but didn't create proportionate employment • Service sector growth was more in high-skilled jobs (limited numbers) and low-quality jobs (large numbers) • Workers remain in agriculture because they have nowhere else to go Implications and Need for Action:
• About 44% workers producing only 17% of GDP shows massive underemployment • There are more people in agriculture than necessary • If surplus workers can be moved to productive work elsewhere, both agricultural and total production would increase • Government intervention needed through programs like MGNREGA • Investment in rural infrastructure and industries essential • Need to create quality employment opportunities in all sectors Contrast with Developed Countries: • In developed countries, both production AND employment shifted to tertiary sector • In India, only production has shifted; employment remains stuck in primary sector • This makes India's challenge unique - need to create massive employment while ensuring productivity growth
Ans 19. Case study on MGNREGA implementation
(a) How MGNREGA helped: (2 marks) Employment Benefits: • Provided direct employment to 200 workers for 100 days • Each worker earned Rs 300 per day, total income = Rs 30,000 per worker • This is significant income for rural workers who otherwise face underemployment • Guaranteed employment as per the Right to Work • Workers received regular wages for productive work Development Benefits: • The work undertaken created permanent assets (check dams and ponds) • These structures help in rainwater harvesting • Farmers can now irrigate their fields during dry months • This led to diversification - farmers could grow vegetables in addition to regular crops • Increased and diversified production improved farmers' income • Some started allied activities like dairy and poultry • This shows how MGNREGA can provide immediate employment while creating infrastructure for long-term development
(b) How work helped increase future production: (2 marks) Water availability throughout the year:
• Check dams and ponds store rainwater during monsoon season • This stored water is available for irrigation during dry months • Earlier, farmers depended only on rainfall and could grow one crop • Now they can grow multiple crops with stored water Multiple cropping and diversification: • With water availability, farmers can grow vegetables which need regular irrigation • Vegetables give higher returns than traditional crops • Some farmers started dairy - cattle need water, and with assured water supply, dairy becomes viable • Poultry farming also needs water and became possible with these facilities Increased employment and income:
• More crops mean more agricultural work throughout the year • Vegetables need more labor for cultivation and harvesting • Dairy and poultry provide additional employment and income • This increases future production from the same land Alignment with MGNREGA objective: • MGNREGA prioritizes works that will help increase production from land in future • Water conservation and harvesting directly contribute to this goal • The case study perfectly demonstrates this principle Ans 20. Case study on forest-based employment
(a) Identification of sectors: (2 marks) Primary Sector:
• Tribal people collecting wild honey from forests • This is a primary sector activity as it directly involves gathering natural products from nature • Honey is a natural product produced by bees in forests • No manufacturing or processing is involved at this stage • This employs about 10,000 tribal families Secondary Sector: • Processing and packaging of honey at the collection centers • This involves converting raw honey into packaged products ready for sale • Women's self-help groups making products like beeswax candles • This is manufacturing activity - transforming raw materials (beeswax) into finished products (candles) • These are secondary sector activities Tertiary Sector:
• Honey collection centers acting as intermediaries between collectors and markets • Selling packaged honey in cities under brand names • Distribution and marketing of products • These are trade and commerce activities belonging to tertiary sector
(b) Employment creation with environmental protection: (2 marks) Employment Generation: • Direct employment: 10,000 tribal families earn income from collecting honey • They earn additional income without leaving their villages or forests • Fair prices at collection centers ensure decent income • Women's self-help groups get employment making value-added products • Processing and packaging at centers creates jobs in secondary sector • Marketing and distribution create tertiary sector employment • Thus, employment is created across all three sectors Environmental Protection:
• Wild honey collection is a sustainable activity • Tribal people collect honey without harming bees or their habitats • Forests remain intact as honey collection doesn't require cutting trees • This gives tribal people economic incentive to protect forests • If they had no income source, they might resort to activities like illegal logging • Now they see forests as source of livelihood and protect them Additional benefits of this model: • Reduces migration from forest areas to cities • Preserves traditional knowledge of tribal people • Empowers women through self-help groups • Demonstrates that economic development and environmental conservation can go together • Similar models can be replicated for other forest products This case study is an excellent example of how sustainable livelihoods can be created in rural and forest areas while protecting the environment. It shows that development doesn't have to come at the cost of nature.
| Class | Class X (CBSE / NCERT) |
| Subject | Social Science |
| Chapter | Chapter 20: Sectors of the Indian Economy (Economics) |
| Resource Type | Practice Paper |
| Session | 2026-27 (Latest NCERT Syllabus) |
| Downloads | 53+ |
| Prepared by | Sumeet Sahu, Unique Study Point, Indore |
| Cost | Free |