On the basis of employment conditions, the economy is divided into

The economy is classified into different sectors based on specific criteria. On the basis of employment conditions, the economy is divided into the organized and unorganized sectors [1]. The organized sector covers those enterprises or places of work where the terms of employment are regular and people have assured work, whereas the unorganized sector is characterized by small and scattered units which are largely outside the control of the government [4]. In contrast, the classification into primary, secondary, and tertiary sectors is based on the nature of the economic activity [2]. Furthermore, the division into public and private sectors is determined by who owns the assets and is responsible for the delivery of services [2]. In India, the unorganized sector remains a significant source of employment, often referred to interchangeably with the informal sector [4].

Sources

1. [1] Understanding Economic Development. Class X . NCERT(Revised ed 2025) > Chapter 2: SECTORS OF THE INDIAN ECONOMY > SUMMING UP > p. 33
2. [4] https://sathee.iitk.ac.in/ncert-books/class-11/economics/indian-economic-development/chapter-06-employment-growth-informalisation-and-other-issues/
3. [2] Understanding Economic Development. Class X . NCERT(Revised ed 2025) > Chapter 1: DEVELOPMENT > CHAPTER 2: SECTORS OF THE INDIAN ECONOMY > p. 17