An economy – divided into three sectors
- Primary sector 🌴🎋🌳🌾
- Secondary sector 🏭🚗🧑🏭
- tertiary sector 👨🏻🏫💻🏥
before exploring these three sectors we should understand what is an economy ?
‘economy’ is a system through which a country or society plans & organizes the use of the available Resources. The purpose of such a system is to utilise the limited resources and produce the required goods and services. The economy as a system helps maintain stability in the society.
The 3 Sectors of economy
The division of these sectors is based on the types of economic activities involved/performed in an economy. The classification of such economic activities in 3 economic sectors :
👇
1. Primary Sector – 🌴🎋🌳🌾
Basically this sector consists of activities involving extraction of natural resources. Here people are directly dependent on nature to produce raw material and goods.
This sector has Primary sector economic activities which provides raw material for further economic activities.
>> Mining, agriculture activities, forestry, fishing, livestock, etc. belongs to the primary sector.
the sector is dominated by Agriculture and allied activities therefore this sector is called as Agriculture sector.
2. Secondary sector – 🏭🚗🧑🏭
This sector consists of economic activities involving manufacturing. Making something useful from raw material is the basic theme of this sector. People depend on the output of primary sector to produce goods in the secondary sector activities.
>> construction of building, roads, infrastructure projects, etc. is in the secondary sector.
>> production of various products in factories also accounts for the activities in the secondary sector.
>> food processing factories, making flour from grains, making products from primary sector output to ____sell furthur or to consume.
Manufacturing activities and industries dominate this sector therefore this sector is known as ‘Manufacturing sector’ or ‘Industry sector’.
3. Tertiary Sector – 👨🏻🏫💻🏥
This third sector has economic activities involving activities related to services. People in this sector provide various services to the primary and secondary sectors. This sector provides services which supports the people involved in the primary & secondary sectors. it also supports the tertiary sector itself.
>> Education – Schools, coaching institutes, singing classes, swimming classes, etc.
>> Insurance services, banks, transportation & logistics, etc.
>> Fruits & vegitable vendors, drivers, teachers, doctors, lawyers, pilots, etc. work in tertiary sector.
The services activities dominate this sector that’s why it is known as ‘Service sector’.
These sectors are not separate or independent but are interdependent on each other. As we have seen the service sector helps the other two sectors correspondingly the other two sectors help the service sector and also help each other. One IT company provides services to a textile manufacturing company which is a typical example of the interdependence of the sectors of an economy.
The GDP of a country is the sum of all the final production of all the three sectors of the economy.
Which sector contributes the most to the GDP of India ?
The data belongs to the Financial Year-24 (April,2024 – March,2025)
- Agriculture sector contributes 16% to the GDP. the sector’s annual growth was just 5% between 2017-2023.
- the workforce employed in agri and allied sectors is almost 46%. Which means half of the population of our country depends on the agriculture.
- Manufacturing sector contributed around 28% to the GDP.
- India needs industry sector to grow faster which will create employment.
- Service sector contributed around 56% to our GDP. Tertiary sector contributes the largest share to GDP of India.
- the largest contributor to our GDP but employing just 30% of our workforce !
source: PIB(press information bureau), Govt. of India.
It is difficult and complex to track which activity is contributing in which sector of the economy. It is general division and it does not make any limitation to any economic activity. This classification is followed for our understanding of economic activities, their flow and interdependence.
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Agriculture sector Ability to more Grow but government not to a support Indian farmers.