It’s difficult for a layman to understand how he actually interacts with the economy in his normal day schedule. But the underlying fact is that every single person living on this planet interacts with almost all the sectors of the economy on a daily basis. How? read further.. Ofcourse, you must be wondering ..this is not possible. All you need to do is just enjoy this thought and ignore for a moment all the technical concepts of economics which you have learned in the past. Economics is a subject which has lot of flexibility, you can get as complex as making a space craft or as simple as holding a glass in your hand.
Contribution of service sector is maximum (56.9%) in our GDP, so let’s pick a working day from a service class employee’s calendar and understand how unknowingly Mr. Roy (dummy character in our journey) interacts with almost all the sectors of our economy. Here we Go!
When Mr. Roy gets up in the morning, our dear Power sector is at his service by providing electricity to him for lighting up the lamp. Thereafter Mr. Roy engages himself in the regular morning activity where he interacts with lot of consumer care products for freshening up. Once he is done with freshening up, then he interacts with the clothing and textile industry to meet the requirement of his formal office clothing. Now it’s time to take the first meal of the day ‘breakfast’ where Mr. Roy would definitely like to thank Food and Beverages industry for providing him with variety of products starting from dairy products, cereals, vegetables, juices etc. Parallely while having breakfast, Mr. Roy prefers to take a quick glance of the news by flipping through the newspaper or by watching a news channel on the TV. With this habit of Mr. Roy, he is interacting with the Media & Entertainment/Advertisement industry. After taking the first energetic meal of the day, it’s time for Mr. Roy to move out for work where he is expected to contribute to the GDP of the country. Mr. Roy generally prefers driving by his own car, so here he takes a ride in the product of the Automobile sector. Of course we all know that no car works without a fuel, so Oil & gas (fuel) sector becomes the lifeline of our roads and Highway sector coupled with Automobile and Logistics sector.
Once Mr. Roy reaches his office, he’s greeted by the security guard at the door who is usually an outsourced employee of a security company. That’s where he gets to learn about the outsourcing businesses and role of Manpower companies. The office in which Mr. Roy works is the product of our Construction Industry. Construction industry does not walk in isolation, rather it takes along the major chunk of the Industrial Goods sector, For example – Building Products, Steel, Aluminium, Cement, chemicals, Engineering, Furnishing etc. ( Since the classification of Industrial sector is vast, hence in the interest of the reader, the list has been restricted to the most essential ones). In office, Mr. Roy is provided with a Laptop and a internet connection as a resource to perform his job. Life becomes simpler because of the revolution in the IT (software and hardware) sector.
After being exhausted from office, Mr. Roy is always on a hunt for some exotic leisure activities to beat the stress. So, the menu card offers him with – Play sports, go for salsa classes, go out with friends for drink/ dinner etc. If you have carefully observed here, unknowingly we have covered Sports, Re-creational activities, Restaurant and Lounges (Hospitality) industry before we end our day.
Needless to highlight some of the sectors that Mr. Roy carries with himself always – Telecommunication, Mobile Industry, E-commerce, Banking, Luxury Goods (Watches and apparels), Footwear, Leather Industry (Bags, Wallet etc)
Now if we look back and see what we have actually discussed is nothing but a person’s daily schedule and how he has been interacting with the building blocks of our economy on a daily basis. India is the biggest democratic country with a population of 1.25 billion people. When we choose our leaders to run our economy we should be very careful and sure, they are the ones who are going to frame the policies of different sectors and create an impact in our daily lifestyle. Also the sectors what we have discussed forms the building blocks of our major stock exchanges BSE and NSE.
Hope now understanding economy sounds simpler! Please provide your feedback in the comment box below.