Economy and Economic Activities
To run a house someone earns, someone spends and someone saves. Likewise to run a country different people do different occupations; all of them together make the country’s economy.
An economy is the system of production, distribution and use of goods and services. Three levels: primary (getting from nature), secondary (making goods) and tertiary (providing services).
Key idea 1 : Three types of activities — Primary activities obtain directly from nature: farming, fishing, mining. Secondary activities make finished goods from raw material: factories, construction. Tertiary activities provide services: education, health, transport, banking, tourism, television broadcasting. As a country develops the role of the tertiary sector grows.
Key idea 2 : Mixed economy and developing countries — The economies of India and Brazil are both mixed, that is, they have private and public sectors. In banking, railways, air transport, health and telecom both private and public companies exist; in Brazil electricity and iron and steel are largely public and education largely public. Both countries are developing; compared with developed countries like the USA their per capita incomes are low.
Key idea 3 : National income and per capita income — National income is the total income earned by a country in a year; per capita income = national income ÷ population. As per the graph in the textbook India’s national income is higher than Brazil’s, but because population is much larger India’s per capita income is less than Brazil’s. Brazil is among the world giants in mining, agriculture and manufacturing and its service sector is growing fast; India is still more dependent on agriculture.
- Easy : Fishing is which activity? — Primary.
- Medium : Car manufacturing is which activity? — Secondary.
- Exam-type : Teaching is which activity? — Tertiary.
In the figure: Primary, secondary and tertiary activities.
Nature → factory → service.
High national income does not mean high per capita income; population must also be seen.
Memory clue: Primary = nature; secondary = factory; tertiary = service. Memory clue: "First field, second factory, third service".
Spot the difference
| Type | Work | Example |
|---|---|---|
| Primary | Getting from nature | Farming, fishing, mining |
| Secondary | Making goods | Iron and steel, automobile |
| Tertiary | Providing services | Banking, education, transport |
Practice questions
- 1What is an economy?
- 2Write types of economic activities with examples.
- 3What is a mixed economy?
- 4Why is India’s per capita income less than Brazil’s?
- 5How is per capita income found?
- 6Write the difference between developed and developing countries.
- 7Which type of occupation boosts a country’s development?
- 8Classify 10 jobs as primary, secondary and tertiary.
Show answers (try them yourself first)
- 1System of production, distribution and use of goods and services.
- 2Primary: farming; secondary: factory; tertiary: education.
- 3Economy with both private and public sectors.
- 4The population is very large.
- 5National income ÷ population.
- 6Developed: high per capita income, technology; developing: lower income.
- 7Secondary and tertiary.
- 8Student prepares the table.
Primary Activities in Brazil
In the market we buy coffee, soybean oil, sugar and fruit. Many of these go from Brazil all over the world.
Primary activities of Brazil: agriculture, livestock, mining and fishing.
Key idea 1 : Agriculture and livestock — Agriculture is the main occupation of people in the highlands and coastal areas; favourable climate and relief allow a variety of crops. Rice and maize are the main cereals; maize production is mainly in the central part. Commercial crops like coffee, cocoa, rubber, soybean and sugarcane are grown on a large scale. As per the textbook Brazil is the largest exporter of coffee and soybean in the world. Fruits like bananas, pineapples, oranges and other citrus fruits are also grown. Cattle, sheep and goats are reared in the savannah grasslands of the south; so meat and dairy products are produced on a large scale.
Key idea 2 : Mining — The eastern part of Brazil is rich in minerals like iron ore, manganese, nickel, copper, bauxite, tungsten and diamonds. In the interior, difficult transport, lack of knowledge of reserves and dense forest limit mining. Still, because of rising demand within the country mining has developed well in the east and coastal areas.
Key idea 3 : Fishing — Brazil has a coast of about 7,400 km. Off the south-east coast the warm Brazil current and the cold Falkland current meet; so an excellent fishing ground is formed there. Earlier small groups fished with primitive tools; now large vessels are used. Swordfish, shrimp, lobsters and sardines are the main catch. The fish resources of the Amazon are not used much; fishing there is only on a small scale.
- Easy : Where is maize more in Brazil? — Central part.
- Medium : Where is fishing good in Brazil? — South-east coast; meeting of two currents.
- Exam-type : Why is mining less in the interior? — Transport, dense forest.
In the figure: Primary activities of Brazil.
Brazil has been the world’s largest coffee producer for about 150 years; the principal coffee-growing states are Minas Gerais and Espirito Santo, followed by Sao Paulo and Parana (the textbook names Minas Gerais and Sao Paulo) (as per several sources; check with the book).
Fa-Li-Mi-Fi.
Fishing in the Amazon river is not large in Brazil, but coastal fishing is large.
Memory clue: Brazil = coffee + soy + iron ore + southern coastal fish. Memory clue: "Coffee, soy, iron, fish".
Spot the difference
| Activity | Product | Region |
|---|---|---|
| Farming | Coffee, soybean, cane, maize | Highlands, coast, centre |
| Mining | Iron ore, manganese, bauxite | Eastern part |
| Fishing | Sardine, shrimp, swordfish | South-east coast |
Practice questions
- 1Write the features of Brazilian agriculture.
- 2Write about coffee production in Brazil.
- 3Why is mining concentrated in the east of Brazil?
- 4Why is fishing good on the south-east coast?
- 5Why is fishing less in the Amazon?
- 6Where is livestock reared in Brazil and why?
- 7Write the main commercial crops of Brazil.
- 8Show crops and minerals of Brazil on a map.
Show answers (try them yourself first)
- 1Variety of crops; large export of coffee and soybean.
- 2Largest producer in the world; Minas Gerais, Sao Paulo and other states.
- 3Mineral reserves and demand in the east; difficulties in the interior.
- 4Warm Brazil and cold Falkland currents meet.
- 5Fish resources are not much used.
- 6In the savannah grasslands of the south.
- 7Coffee, cocoa, rubber, soybean, sugarcane.
- 8Student shows on the map.
Primary Activities in India
Rice, chapati, vegetables and fish on the dining plate all come from primary activities. A large part of India still does these occupations.
Primary activities of India: agriculture, fishing and mining. In India agriculture gives work to a large population.
Key idea 1 : Agriculture — Unlike Brazil, agriculture in India engages a large population. As per the textbook about 60 per cent of land is under cultivation. Strengths: vast level plains, rich soil, a large share of cultivable land, climatic variety and long growing season. Agriculture is mainly of subsistence type. Rice, wheat, maize, sorghum and millets are the main foodgrains; plantations of tea, coffee and rubber; cash crops like sugarcane, cotton and jute; and also fruits and vegetables.
Key idea 2 : Fishing — Fishing increases food supply, gives employment, raises nutrition and earns foreign exchange. Fish is an important part of the diet of people in coastal areas of Kerala, West Bengal, Odisha, Andhra Pradesh, Tamil Nadu, Goa and Maharashtra. India has a coastline of about 7,500 km. Marine fishing (about 40 per cent as per the textbook) is confined to coastal waters; sardines, mackerel, Bombay duck and prawns are major fish. Freshwater fishing in rivers, canals, lakes and ponds (carp like rohu and catla) gives about 60 per cent of production as per the textbook.
Key idea 3 : Mining — The Chhota Nagpur plateau is a big storehouse of different minerals and mining is the main work there. Coal is mined at Korba in Chhattisgarh and in eastern Maharashtra. Mineral oil wells are at Digboi in Assam, Mumbai High in the Arabian Sea near Maharashtra, and Kalol and Koyali in Gujarat. Oil and natural gas reserves have been found near the mouth of the Godavari. Stones like marble are found in Rajasthan and Cuddapah in Andhra Pradesh.
- Easy : Subsistence farming in India means? — Growing mainly for the family.
- Medium : Mumbai High is for? — Mineral oil.
- Exam-type : Freshwater fishing where? — Rivers, lakes, canals.
In the figure: Primary activities of India and places.
Big farming, mines in east-centre.
All Indian farming is not commercial; it is mainly subsistence type.
Memory clue: India = farming + fish + coal + oil. Memory clue: "Fa-Fi-Co-Oi".
Spot the difference
| Point | India | Brazil |
|---|---|---|
| People in farming | More, subsistence | Less, large commercial |
| Minerals | Coal, oil, marble | Iron ore, manganese, bauxite |
| Fishing | More freshwater | Marine, south-east |
Practice questions
- 1State the strengths of Indian agriculture.
- 2Write the importance of fishing in India.
- 3Where is mineral oil found in India?
- 4Write the importance of the Chhota Nagpur plateau.
- 5Compare the agriculture of India and Brazil.
- 6State the difference between marine and freshwater fishing.
- 7Where is coal mined in India?
- 8Show crops and minerals on a map of India.
Show answers (try them yourself first)
- 1Level plains, fertile soil, climatic variety, long growing season.
- 2Food supply, jobs, nutrition and foreign exchange.
- 3Digboi in Assam, Mumbai High, Kalol-Koyali in Gujarat.
- 4Storehouse of many minerals; mining is the main work.
- 5More people in farming in India; fewer in Brazil.
- 6Marine: coastal waters; freshwater: rivers, lakes.
- 7Korba in Chhattisgarh and eastern Maharashtra.
- 8Student shows on the map.
Industries, Trade and Indo-Brazil Ties
Raw material goes into a factory and finished goods come out; when sold to other countries it is called export and when bought from other countries, import. Countries trade like this with each other.
The difference between the value of exports and imports is the balance of trade. If exports are more it is favourable (surplus) and if imports are more it is unfavourable (deficit).
Key idea 1 : Industries in Brazil and India — Major industries of Brazil: iron and steel, automobile assembly, petroleum refining, chemicals and cement; recently technology-based industries have grown fast, though traditional industries have not fallen behind. Most large industries are in the south and south-east; the north-east is traditionally poor but new investment is starting to come. Distribution of industries in India is uneven because raw materials and power sources are uneven and finance and facilities concentrate in big cities. As Jharkhand, Odisha, Chhattisgarh, Madhya Pradesh, Karnataka and Tamil Nadu have metal ores, the iron and steel industry is concentrated in the north-east of the Peninsula.
Key idea 2 : Trade — Brazil mainly exports iron ore, coffee, cocoa, cotton, sugar, tobacco, oranges and bananas; it imports machinery, chemicals, fertilisers, wheat, heavy vehicles and mineral oil. India exports tea, mangoes, coffee, spices, leather, iron ore, cotton and silk textiles and imports mineral oil, machines, pearls and precious stones, gold and silver, paper and medicines. In international transactions the US dollar ($) is used; Brazil’s currency is the real (R$) and India’s the rupee (₹).
Key idea 3 : Indo-Brazil ties — Through the BRICS group Brazil has made a strategic partnership with India; bilateral investment agreements have been signed. Indian companies have made large investments in Brazil in IT, pharmaceuticals, energy, agri-business, mining, engineering and automobile sectors. The footprint of Brazilian companies in India is smaller but important: automobiles, IT, mining, energy, biofuels and footwear.
- Easy : Exports more and imports less? — Favourable balance of trade.
- Medium : Brazil’s currency? — Real (R$).
- Exam-type : Where is the iron and steel industry in India? — North-east of the Peninsula.
In the figure: Important stages of the BRICS group.
BRICS: the term ‘BRIC’ was used in 2001 by economist Jim O’Neill; first summit in June 2009 at Yekaterinburg in Russia; South Africa joined in 2010; Egypt, Ethiopia, Iran and the UAE joined in January 2024 (as per several sources; check with the book).
The textbook says Brazil adopted a goods and services tax (GST) system from 1984; in fact Brazil made a major tax reform in December 2023 and began phasing in a ‘dual VAT’ (CBS and IBS) from 2026, with full implementation by 2033 (as per several sources; check with the book).
Export – import = balance of trade.
More imports is not always bad, but a continuous deficit strains the economy.
Memory clue: Exports > imports = favourable; imports > exports = unfavourable. Memory clue: "Sold more = favourable".
Spot the difference
| Point | India | Brazil |
|---|---|---|
| Main exports | Tea, spices, leather, textiles | Iron ore, coffee, cocoa, sugar |
| Main imports | Mineral oil, machines, gold | Machinery, chemicals, fertiliser, wheat |
| Currency | Rupee (₹) | Real (R$) |
Practice questions
- 1What is the balance of trade?
- 2State the difference between favourable and unfavourable balance of trade.
- 3Write the main industries of Brazil and their location.
- 4Why is the distribution of industries uneven in India?
- 5What is BRICS?
- 6Compare the trade of India and Brazil.
- 7Write a note on Indo-Brazil ties.
- 8How is salt produced in Rajasthan which has no coast?
Show answers (try them yourself first)
- 1Difference between the value of exports and imports.
- 2Favourable: exports more; unfavourable: imports more.
- 3Iron and steel, automobile assembly, chemicals; south and south-east.
- 4Uneven raw materials; finance and facilities in big cities.
- 5Group of Brazil, Russia, India, China and South Africa (later expanded).
- 6Exports and imports differ; student writes by looking at the table.
- 7BRICS partnership, investment agreements, IT, mining, energy.
- 8From saline lakes like Sambhar and saline groundwater; in dry climate the Sun’s heat evaporates the water and salt is left.