GSEB Class 8 Social Science Notes Chapter 9 Our Economic System

This GSEB Class 8 Social Science Notes Chapter 9 Our Economic System covers all the important topics and concepts as mentioned in the chapter.

Our Economic System Class 8 GSEB Notes

→ Economic activities are mainly divided into three sectors:

  1. Primary Sector
  2. Secondary Sector and
  3. Service Sector.

→ The sector providing raw material for food commodities and industrially manufactured goods is known as
‘Primary Sector’.

→ Forest, mining, animal husbandry, fisheries, etc. that provide raw material for food and industry are included in primary sector.

→ Certain primary products cam be used only after they have been processed into a finished product. Such economic activity is called the activity of the ‘Secondary Sector’.

GSEB Class 8 Social Science Notes Chapter 9 Our Economic System

→ The Secondary Sector (also known as the Manu¬facturing Sector) includes small and large scale industries, manufacturing machineries, units manufacturing electrical equipments, consumer goods, chemicals and dyes, clothes, defense equipments, etc.

→ The Service Sector (also known as the Tertiary Sector): The Primary and the Secondary sectors cannot function without this sector.

→ Means of transportation and communication, education, health, banking and insurance companies, travel and entertainment, cooking gas, electricity services, etc. are included in the ‘Service Sector’.

→ In modern times, internet, ATM, call centres, software companies, etc. have also become important services.

→ Industries that are owned by the government and run under government policies are known as Public Sector Industries. For e.g., Bharat Heavy Electricals Limited (BHEL).

→ Industries that are owned and run by private owners are known as Private Sector Industries. For e.g., Reliance Industries Limited (RIL).

→ Industries that are owned and run by both, the government and private owners are known as Joint Sector Units. The government enjoys greater control in these ventures.

→ Co-operative Sector Units: When individuals who are not economically sound, pool their resources and form a group for business purposes, their venture is termed as a co-operative sector unit. For e.g, dairies and sugar factories are examples of this sector.

→ To keep pace with the developing world, to flow with the global tide and to make India a developed nation, the Indian government has brought about certain changes in its Economic Policies.

→ In the new economic policy formulated in 1991 the three aspects; liberalization, privatization, and globalization, were included.

→ According to the policy of ‘Economic Liberalization’
certain regulations related to manufacturing, trade and commerce were removed. Duties and tax relaxations on import-export were announced.

→ The process of establishing a new manufacturing unit was made simpler. As a result, India has been able to keep pace with the world in terms of production, trade and commerce. It has also generate more employment opportunities.

→ ‘Privatization’ means the process by which government owned enterprises or public sector industries are handed over to private agencies or owners. This happened because public sector units were suffering losses while private sector units were making more profit. The Joint Sector is a part of the process of privatization.

→ ‘Globalization’ means the world becoming one or countries coming closer to one another. Due to globalization any country of the world can trade with another country easily.

GSEB Class 8 Social Science Notes Chapter 9 Our Economic System

→ The unique revolution in the field of information technology has stimulated globalization.

→ The W.T.O. (World Trade Organization) which was established in 1995 is working towards promoting/ fostering globalization.

→ Effects of Globalization :

  • Employment opportunit-ies have increased in the service sector with the advent of information technology.
  • Phone, fax, mobile, e-mail, internet, video conference, etc. are some of the revolutionary tools of information technology which transfer information faster and at low cost. This has made the economic development of our country faster.
  • Multinational companies have started projects in different countries which have proved profitable for the host nations also.
  • Competition in the world markets results in high quality goods being available to customers at low prices. For e.g., Chinese toys have become very popular in the Indian market due to their low prices and attractive designs. Within a year, Chinese toys have replaced Indian toys in 70 % to 80 % shops. Thus, toys are cheaper in the Indian markets now than they were previously.

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