Class 10 Economics Notes

Chapter 4 Globalisation And the Indian Economy Class 10 Economics Notes 2024-25|Class 10 Economics Notes

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In this post chapter 4 Globalisation And the Indian Economy Class 10 Economics Notes are explained as per the latest syllabus of class 10 Economics Chapter 4 which has covered a few topics like what is globalization and the factors that have enabled the Globalisation.Here notes of globalisation and the Indian Economy Class 10 Economics notes is comprehensively covered so that students would feel confident in his preparation for the board exams.

Globalisation and the Indian Economy Notes Class 10 Economics

What Is Globalisation?

Meaning of globalisation

Globalisation is the process of rapid integration or interconnection between countries.

•Most of the MNCs locate industries where their cost of production would be cheap and foreign investment and foreign trade have been increased rapidly in recent years by MNCs.

•A major proportion of foreign trade is controlled by MNCs as different activities related to production are done in different countries to maximize profits by reducing costs.

Eg: manufacturing plant of Ford Motors in India not only produces car for Indian market but also to exports to developing countries and export car components for its many factories around the world.

Advantages

•More and more goods and services, investment and technology are moving between countries.

•Countries can be connected in another way through the movement of people between countries in search of better income, better jobs or better education.

•People would have wide range of choices of goods and services.

•Competition help consumers to get quality products at reasonable price.

•Result of greater foreign trade and greater foreign investment lead to greater integration of production and markets across countries.

Factors that have enabled globalization

Technology

•Improvement in technology has made delivery of goods faster across long distances at lower costs.

•Technology in areas of telecommunications, computer and internet are used to connect one another around the World and from remote areas.

•Internet allows us to send instant electronic mail and talk at negligible costs across the world.

•Information and communication technology (IT) has helped in spreading out production of services across countries.

Money and Credit Class 10 Notes

Trade barriers

When tax is levied on imports of goods and services is called trade barrier.

It is called a barrier because some restriction has been imposed by government on exports and imports of goods and services.

Purpose

•Governments can use trade barriers to increase or decrease foreign trade and to decide what kinds of goods and how much of each, should come into the country.

•The Indian government, after independence, had put barriers to foreign trade and foreign investment to protect the producers within the country from foreign competition.

•Industries were just coming up in the 1950s and 1960s, and competition from imports at that stage would not have allowed these industries to come up.

Thus, India allowed imports of only essential items such as machinery, fertilisers, petroleum etc.

•all developed countries, during the early stages of development, have given protection to domestic producers through a variety of means.

Changes after 1991( Economic Reforms)

•The government decided that the time had come for Indian producers to compete with producers around the globe.

•Competition would improve the performance of producers within the country since they would have toimprove their quality.

•barriers on foreign trade and foreign investment were removed s that goods could be imported and exported easily.

•foreign companies could set up factories and offices.

Liberalisation

Removing barriers or restrictions set by the government on the export and import of goods and services across countries of the world is known as liberalisation.

Advantages

•With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export.

•The government imposes much less restrictions than before and is therefore said to be more liberal .

Class 10 Economics Globalization and the Indian Economy Notes

Money and Credit Class 10 Notes

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In this post, money and Credit class 10 notes are elaborately discussed that are helpful for board exams preparation of Class 10 Economics chapter 3 Money and Credit.Here there is explanation of money as medium of exchange, double coincidence of wants, barter System, traditional and modern form of money,types of credit and SHGs.After reading the notes of chapter 3 Money and credit class 10 Economics students would feel confident in his exams.

Chapter 3 Money and credit Notes

Money as a Medium of Exchange

Barter System

A system in which goods are directly exchanged with goods or services without the use of money. Double coincidence of wants is an important feature of it.

Double Coincidence of Wants

When both parties have to agree to sell and buy each others commodities.This is known as Double coincidence of wants. What a person desires to sell is exactly what the other wishes to buy

Money

In an economy, money by providing the intermediate step help to eliminates the need for double coincidence of wants. It is no longer necessary for the customer to look the person who requires what he produces.Since money acts as an intermediate in the exchange process, It is called a medium of exchange.

A person holding money can easily exchange it for any commodity or service that he or she might want.Thus everyone prefers to receive payments in money and then exchange the money for things that they want.

Modern Forms of Money

In the early ages, grains and cattle were used as money. Thereafter the use of metallic coins – gold, silver, copper coins – a phase which continued well into the last century came into use. Now, the modern forms of money include currency – paper notes and coins.

They are accepted as medium of exchange as it is authorised by the government of the country. modern currency is without any use of its own

Currency

In India, the Reserve Bank of India issues currency notes on behalf of the central government. No other individual or organisation is allowed to issue currency. So the rupee is widely accepted as a medium of exchange in India.

Moreover, the law legalises the use of rupee as a medium of payment that cannot be refused in settling transactions in India. No individual in India can legally refuse  payment made in rupees. Hence,the rupee is widely accepted as a medium of exchange.

Deposits in Banks

The other form in which people hold money is as deposits with banks. People deposit their extra cash with the banks by opening a bank account in their name. Banks accept the deposits and also pay an amount as interest on the deposits.

Demand Deposits

The deposits in the bank accounts can be withdrawn on demand, these deposits are called demand deposits. The facility of cheques against demand deposits makes it possible to directly settle payments without the use of cash. Since demand deposits are accepted widely as a means of payment, along with currency, they constitute money in the modern economy.

Cheque

A cheque is a paper instructing the bank to pay a specific amount from the person’s account to the person in whose name the cheque has been issued.

Loan Activities of Banks

Banks keep only a small proportion of their deposits as cash with themselves. These days banks in India hold about 15% of their deposits as cash. This is kept as a provision to pay the depositors who might come to withdraw money from the bank on any given day. Banks use the major portion of the deposits to extend loans. There is a huge demand for loans for various economic activities. Banks charge a higher interest rate on loans than what they offer on deposits. The difference between what is charged by borrowers and what is paid to depositors is their main source of income for banks.

Two Different Credit Situations

Credit

Credit (loan) refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment.

Here are two examples which help you to understand how credit works.

In the first scenario, a person gets leather from leather supplier in promise of payment later in future and also takes advances from manufacturers to meet the needs of extra labour, raw material and other products  And by the end of the year, he or she has made a big profit from manufacturing operations and is able to repay the loan. As a result, the person is in a better position than previously.

ii. In the second scenario, a woman borrows money from moneylenders for crop production . Crop production involves considerable costs on seeds, fertilisers, pesticides, water, electricity, repair of equipment, etc In first year,she was not able to repay the loan and again take loans but in second year, production was normal that could not pay the loan of two years.And by the end of the year, he or she has fallen into a financial trap. As a result, that person is in a worse situation than before.

In one situation credit helps to increase earnings and therefore the person is better off than before. In another situation, because of the crop failure, credit pushes the person into a debt trap.

Chapter 4 Globalisation And the Indian Economy Notes

Terms of Credit

Every loan agreement specifies an interest rate that the borrower must pay to the lender along with the repayment of the principal. In addition, lenders also demand collateral (security) against loans.

Collateral (Security) is an asset that the borrower owns (such as land, building, vehicle, livestock, deposits with banks) and uses this as a guarantee to a lender until the loan is repaid. If the borrower fails to repay the loan, the lender has the right to sell the asset or collateral to obtain payment.

Interest rate, collateral and documentation requirement and the mode of repayment, together, are called the terms of credit. It may vary depending on the nature of the lender and the borrower.

Formal Sector Credit in India

Cheap and affordable credit is crucial for the country’s development. The various types of loans can be grouped as follows:

Formal sector loans:

 Loans from banks and cooperatives come in this category.

Functions of Reserve Bank of India in Formal Loans

  • The Reserve Bank of India supervises the functioning of formal sources of loans.
  • RBI  monitors the banks  in maintaining cash balance out of the deposits it recieves from the depositors
  • RBI overlooks that the bank give loans not just to large profit making bussine but also to small farmers,small and medium scale industries and the small borrowers.
  • RBI ask banks to submit information  on how much they are lending, to whom, at what interest rate, etc.

Demerits of Informal Sector of Loans

  • . No organisation which supervises the credit activities of lenders in the informal sector.
  •                  These are the loans from moneylenders, traders, employers etc who lend at whatever interest rate they want.
  • Nobody stops them from using unfair means to get their money back.

Debt Trap

High rate of interest for borrowing in informal sector means amount to be repaid is greater than income of borrowers if it is for long period of time.It could lead to increasing debt on borrowers and he come in debt trap.

Formal Credit and Development

When formal sector includes banks and cooperatives provides loans at cheap rate of interest then

  • more people could borrow for fulfilling  various needs.
  • Farmers could grow two or more  crops that could assist him to improve his financial conditions and can come out of debt trap.
  • Some people can start new businesses which increase the level of income of both businessmen and people employed by him.
  • People in rural areas can set up small scale industries that would provide employment there and can stop urban migration and keep away from various social problems like health issues.
  • •               Cheap credit also help to reduce poverty, employment and social problems that  poor people face as income increases.

So, cheap and affordable credit is crucial for the country’s development.

Who gets what

  • 85 percent of loans taken by poor people in urban areas from informal sources.
  • 90 percent of rich people take loans from formal sources .
  • Similar trends is found in rural areas also.
  • Rich households avail cheap and affordable credit and poor households pay large borrowing that increase gap between rich and poor.

Self Help Groups for the Poor

Cause of the emergence of SHGs

  • Poor households depends on informal sources to meet their financial needs.
  • In rural India, getting loan from bank is more difficult than informal sources as banks ask for collateral which poor doesn’t have .
  •  Getting loan from informal sources like money lender is easy for poor without collateral as he knows him.
  •  Money lender charge high rate of interest and don’t maintain transaction records properly and harass the poor.

So,a new and innovative way was started to address these issues in rural India known as (SHGs).

Meaning

SHGs are small groups of poor people particularly women who encourage their members to save small amounts of money regularly. A typical SHG includes 15-20 members who meet and save on a regular basis, usually from the same neighbourhood.

Advantages of Self Help Group (SHG):

  • It helps members to take small loans from it without collateral.
  • Interest rate of loan is much less than what money lender charges.
  • SHGs are the foundational block of the rural poor’s organisation.
  • Bank offers loans on the name of SHGs,if it functions efficiently
  • It encourages women to become financially self-sufficient by starting new enterprises together.

Why bank give loans to SHGs

Important decisions regarding the savings and loan to be granted – the purpose and amount, interest to be charged, repayment schedule etc are taken by group members itself.Any case of non- repayment of loan by any member is tackle seriously by others members of the group.These important features make SHGs eligible to get loan from bank without collateral.

Social Responsibility by SHGs

The group’s regu meetings give a forum for discussing and taking action on a variety of social issues such as health, nutrition, domestic violence, and so on.

Chapter 2 Sector of the Indian Economy Class 10 Notes

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In this post chapter 2 Sector of the Indian Economy Class 10 notes is explained comprehensively to have clear understanding in an easy manner. Students would be confident before giving exams after preparing these Sectors of Indian Economy Class 10 Notes.

Chapter 2 Sector of The Indian Economy Notes|Class 10 Economics Notes

Sectors

When various economic activities are grouped using the criteria how income is generated by people engaged in them are called sectors.

Primary Sector

When we produce the goods by exploiting the natural resources directly , it is known as the primary sector. It is called primary because it forms the base of all the products that we produce in secondary Sector E.g., Farming, forestry, hunting, fishing and mining.

Secondary Sector

The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that are associated with industrial activities.. Since this sector gradually associated with different kinds of industries that came up,it is also called the industrial sector. For example, using cotton fibre from the plant, we spin yarn and weave cloth.

Tertiary Sector

The tertiary sector includes activities that help in the development of the primary and secondary sectors. These activities, by themselves, do not produce a good, but they are an aid or support for the production process. That’s why It is also called the service sector. Example: Teachers, doctors, washermen, barbers, cobblers, lawyers, call centres, software companies, gives services rather than producing goods.

Economic activities that are grouped into different categories are highly interdependent to one another.

Comparison of three sectors

Each sector has contribution in total production of goods and services.The value of  final goods and services produced in each sector during a particular year provides the total production of the sector for that year.And,sum of production in three sectors gives Gross Domestic Product.

Gross Domestic Product (GDP): It is the value of all final goods and services produced  within the country during an accounting year

Each sector differs in terms of total production (GDP ) and employment. Service sector has the largest contribution in GDP

How is total production calculated

Economists suggest that the value of goods and services should be calculated rather than adding up the number.It gives us correct calculation .While calculating the value,we add only the value of final goods and services instead of intermediate goods because final goods already includes the value of all intermediate goods.If we add value of intermediate goods it can cause the value of same things counted many times and wrong GDP would come.

Final goods – Those goods that are ready for the consumption by a consumer without any further transformation are final goods .

 Intermediate Goods – These goods are used in the production processes to produce final goods and services.

Eg. Biscuit is final goods but flour, sugar and oil etc are intermediate goods.

Money and Credit Class 10 Notes

Historical Change in Sectors

Even in developed countries,at initial of development primary Sector was the important sector.As the farming methods changed and agriculture flourished, many people moved and take up other activities. Over a time,Manufacturing was introduced as good from primary sector used in production of goods and gradually secondary sector expanded.Then,traders, craftsperson, transporter etc were required and most people were employed in providing services and new services were also started.

A shift has occurred from secondary to tertiary sector in developed countries and tertiary sector became the most important in terms of total production and employment ..

Rising Importance of Tertiary Sector

1.Services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, etc., are considered basic services and are necessary for all people.

2.The development of agriculture and industry leads to the development of services such as transport, trade, storage,

3.As the income of people rise, they start demanding more services like eating out, tourism, shopping, private hospitals, private schools, professional training, etc.

4. Over the past decade, certain new services based on information and communication technology have become important and essential so rising rapidly.

There are limited services that employ highly skilled and educated workers and large number of people are engaged in services like shopkeeper repair person, driver and loader etc.These people barely manage to earn for a living as no other opportunities are available to them.

Where are most people employed?

There is change in the share of all sectors in the GDP and employment.

In the 1973-74, primary sector had huge contribution in both GDP and employment but this trend changed and now,service sector has the largest contribution in GDP but primary sector is still the largest sector in terms of employment.

  • Industrial output increased more than 9 times but employment went up three times.
  • Production in service sector rose by 14 times but employment increased around five times.
  • Agriculture shares quarter in GDP but half of the workers are employed in primary sector.
  • Secondary and tertiary sector produce fourth fifth of total production but employment less than half of the people..

Workers in agricultural sector are underemployed as everyone is working,none remain idle but in actual their labour effect gets divided.It means that each of them is busy but not fully employed as everyone works less than the potential. and this situation is called underemployment.It is hidden unemployment as person is not visible as unemployed It is also called disguised unemployment.

Disguised Unemployment – This type of unemployment happens when more persons are engaged than the actual required number of people. It means that if we remove some people then no effect would be in the total output .It is a feature of agriculture.

This underemployment can also be seen in other sectors like casual workers in service sector in urban areas who search for daily employment like plumber,painter,masons  etc. These people don’t get work everyday and sometimes earn very little as they don’t have better opportunities.

How to create more employment

  • Bank can provide loans at cheap rate for agricultural inputs, seeds and fertilizer etc.
  • Investing in infrastructure such as building a dam and canals that would generate employment within the agriculture itself.
  • Govt invest in increasing efficiency of transportation, Storage and roads.
  • Identity, promote and locate the industries and services in semi rural areas such as mills, cold storage honey collection centers.for farmers that will provide employment at rural areas.
  • Building school would employ teachers and other staff so education sector could be developed.
  • Health related services in rural areas are needed that require doctor,nurses, health worker etc to work so it would create jobs.
  • Identifying potential of every state or region. For example, an area can be developed for tourism,region craft . industries or new services like IT.

Above mentioned points would take long time but in short time govt need quick measures to address unemployment .

MNREGA

Central government in India made a law implementing Right to Work in about 625 districts of India. Under MGNREGA,all those who are able to,and are in need of,work in rural areas are guaranteed 100 days of employment.If a govt fails in its duty to provide employment,it will give unemployment allowances to the people.

How to Protect Workers in Unorganised Sector

Many organised sector enterprises  work in unorganised sector to evade taxes and refuse to follow laws that protect labourers.As a result,workers in unorganised sector are exploited by paying low wages and no other benefits.So there is need to protect and support of workers in unorganised sector.

  • In rural areas, unorganised sector comprises of landless labourers, small and marginal farmers, sharecroppers and artisans (weavers, blacksmith, carpenter etc)..
  •  Small and marginal farmers need to be supported by providing adequate facilities for timely delivery of seeds, agricultural inputs, credit, storage facilities and marketing outlets.
  • In urban areas, unorganised sector comprises mainly of workers in small scale industry, casual workers in construction, trade and transport, street vendors, garment makers,ragpickers etc.
  • Majority of the workers from scheduled castes, tribes and backward castes communities are working in unorganised sector and face social discrimination.

Protection and support to workers in unorganised sector is necessary for both economic and social development

Organised and Unorganised Sector

Organised Sector

  • They are registered by the government and have to follow its rules and regulations  such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act etc.
  • Employment terms are fixed and regular, and the employees get assured work.
  • The job is regular and has fixed working hours.
  • Workers enjoy the security of employment.
  • People get various benefits such as paid leave, payment during holidays, provident fund, gratuity, etc.
  • Facilities like drinking water and a safe working environment are provided.

Unorganised Sector

  • The unorganised sector is characterised by small and scattered units, which are largely outside the control of the government.
  • There are rules and regulations but these are not followed since they are not registered with the government.
  • Jobs are low-paid and often not regular.
  • Employment is not secure. People can be asked to leave without any reason.
  • There is no provision for overtime, paid leave, holidays, leave due to sickness, etc.
  • There are no pension ,gratuity etc in the unorganised sector.

Sector on the basis of ownership

Public Sector                                   

  • In the public sector, the government owns most of the assets and provides all the services.
  • Railways or post office is an example of the public sector. 
  • The purpose of the public sector is not just to earn profits.
  • Its main aim is public welfare.

Private Sector

  • In the private sector, ownership of assets and delivery of services is in the hands of private individuals or companies.
  • Companies like Tata Iron and Steel Company Limited (TISCO) or Reliance Industries Limited (RIL) are privately owned companies.
  • Activities in the private sector are guided by the motive to earn profits.

Responsibilities of the Government

  • Government raises money through taxes and other ways to meet expenses on the services rendered by it.
  • Government take responsibility of the construction of roads, bridges, railways, harbours, generating electricity, providing irrigation through dams, etc as private sector doesn’t have any interest and also to ensure these facilities to everyone.
  • The government can encourage the small scale units to continue their production or business by providing benefits like cheap electricity or infrastructure etc.
  • The government in India buys wheat and rice from farmers at a ‘fair price’ and sells them at a lower price to consumers through ration shops. In this way, it supports both farmers and consumers.
  • Providing education and health facilities are primary responsibility of the government.
  • The government also needs to pay attention to aspects of human development such as the availability of safe drinking water, housing facilities for the poor, food and nutrition, and taking care of the poorest and most ignored regions of the country.

Class 10 Economics Sector of the Indian Economy Notes|Sector of the Indian Economy Class 10 Economics Notes

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