Production and Employment

Key Points:

1. The total value of goods and Services produced in the country is the indicator of income for the country. The Technical term to denote this value is Gross Domestic Product (GDP).
2. GDP records the market value of all final goods and services produced. The sum of the Production in the three sectors i.e. Agriculture, Industries and Service, gives GDP. It is value of all final goods and services Produced with a country during a particular year.
3. The Industrial sector became the dominant sector and the importance of the agriculture sector both for employment and production declined.
4. In the Past 50 years, there has been a further shift from Industry to service sector for developed countries.
5. According to the census of India, 2011 out of 1.2 billion persons in India, 460 million people are workers i.e. people engaged in some productive activities.
6. More than half of the workers in India are working in the agricultural sector. Producing only one-sixth of the GDP.
7. The Industry and service sectors produce three-fourth of the GDP where as they employ about half the proportion of Workers.
8. The total value of production of goods and services in India increased approximately 8 times between 1972-73 and 2009-2010.
9. The production of industrial goods went up by more than nine times, employment went up by around three times. The Service sector production rose by more than 14 times, employment rose around five times.
10. Workers in Agricultural sector are under employed. It means that there are more people in agriculture but everyone may not be fully employed.
11. This is the situation of under employment, where people are apparently working but all of them are made to work less than their potential. It is also called disguised unemployment.
12. 92 percent of workers in India are found in unorganized sector and only 8 percent find work in the organized sector.
13. Organized sector covers those enterprises or place of work where the terms of employment are regular and people have assured work. People who work in the government or with large establishments are all in the organized sector.
14. The unorganized sector is characterized by small and scattered units which have remained largely outside the control of the government. Employment is not secure.
15. Nearly 80 percent of rural households in India are in small and marginal farmer category.
16. During 2004-2005.The unorganized sector workers accounted for 92% of all workers that contributed half of all production. On the other, only 8% of people had a decent employment and contributed 50% of the production of goods services.

Key Words:

1. Gross Domestic Product(GDP): The Monetary value of all the finished goods and services produced with in a country’s borders in a specific time period.
GDP = (C+I+G+NX)
2. Final goods: A good or service that is consumed by the end user and does not require any further processing.
3. Sectoral Goods: Goods belonging to different sectors like food, clothing, beverages, automobiles, etc.,
4. Employment Shifts: Change of employment from agriculture sector to industrial and service sectors.
5. Organized and unorganized sector: The enterprises or work where the terms of employment are regular and people have assured work. The unorganized sector is characterized by small and scattered units which have outside the control of the government.