Organized sector Unorganized sectors

The organized sectors cover those enterprises where the term of employment is regular .

The unorganized sectors is characterized by small and scattered units which are largely outside the control of government

They are registered by government , they follow rules and regulations and various laws such as , the factories act , minimum wages act , payment of gratuity , shops and establishments act .

Unorganized sector does not follow any rules and regulation pass by the government .

Workers in the organized sector are paid according to prescribed scale . They also get payment in time on regular basis ,

Most of the jobs are low paid and often notregular .

They get annual increment and other allowances such as provident fund , payment during holidays , paid leave , gratuity , medical benefits , safe working conditions

There is no provision of over time , paid leave , holidays , leave due to sickness etc.

They can form trade unions They cannot form trade unions

Workers under unorganized sector need protection . They are paid low salaries , therefore they are not

able to fulfill even there basic needs . They are exploited . Employment is there but not on regular basis they

can be thrown out any time without any rhym or reason .

Other than salary which is very low they don’t get any other benefits .

These workers also face social discrimination . protection and support to the unorganised sector is

both necessary for economic and social development .

On the basis of ownership , we divide them into , Public sector

Private sector

Public sector Private sector

It is owned by state or central government .

It is owned by private individuals .

They work with the main motive of providing service to the public

They work for profit earning .

It is guided by social objectives likedevelopment of backward regions , creation of employment , and equitable distribution of wealth .

In this sector social objectives are not important it is subjected to strict financial control of the government .

For example , railways , air india , LIC , RBI , FCI .

Foe example , reliance industries limited , tata iron and steel company limited .

Role of government / public sector in the economic development of the country . Infrastructure : construction of roads , bridges ,

generating electricity , irrigation , education etc. are several things needed by society , but private sector could not invest as large amount of money is required .

Also collecting money from thousand of people is not easy .

Hence government has to undertake such heavy spending and ensure creation of infrastructure .

Public welfare : providing health , housing facilities , safe drinking water , food and nutrition for poor are the primary responsibilities of the government these activites should be taken up the government as private sector would like to maximize there profits and has no interest in public welfare .