2. ECONOMIC SECTORS
• Economic activities result in the production of
goods and services while sectors are the group of
economic activities classified on the basis of
some criteria.
• Sector can be defined as an area of the economy in
which business share the same or a related product
or service.
3. CLASSIFICATION OF SECTORS OF
INDIAN ECONOMY
• On the basis of nature of activity, Indian economy
can be classified into:-
1. Primary Sector
2. Secondary Sector
3. Tertiary Sector
4. PRIMARY SECTOR
• Activities undertaken by directly using natural
resources, comes under primary sector.
• Example- Agriculture, Mining, Fishing, Forestry, Dairy
etc.
• It is called primary sector because it forms the base
for all other products that we subsequently make.
• Since, most of the natural products we get are from
agriculture, forestry, fishing; it is also called
Agriculture and related sector.
5.
6. SECONDARY SECTOR
• It covers activity in which natural products are changed
into other forms through ways of manufacturing that we
associate with industrial activity.
• It is a next step after primary, where the product is not
produced by nature but has to be made.
• Some process of manufacturing is essential, it could be in
a factory, a workshop or at home.
• Example:- Using cotton fiber from plant, we spin yarn
and weave cloth; using sugarcane as a raw material , we
make sugar or jaggery.
• Since, this sector is associated with different kinds of
industries, it is also called industrial sector.
7.
8. TERTIARY SECTOR
• These are the activities that help in the development
of the primary and secondary sector.
• These activities by themselves do not produce good
but they are an aid and support to the production
process.
• Example:- Transportation, Storage, Communication,
Banking etc.
• Since these activities generate services rather than
goods, it is also called Service sector.