In the process of classifying economic sectors, economists have divided economic sectors based on the type of work performed and the goods and services produced. These sectors are initially classified as primary, secondary, and tertiary Sectors. The number of sectors grew as new types of work developed, and economists defined new sectors like Quaternary and Quinary sectors. These two sectors are extensions of the tertiary sector.
Primary sector is accountable for securing raw materials and agricultural goods. The primary sector includes jobs in farming, mining, fishing, and forestry.
The secondary sector is responsible for securing and processing raw materials into material goods. These jobs are done in factories converting raw materials into manufactured products. Major industries including Textiles, Chemicals, Food Processing, Steel, Transportation Equipment, Cement, Mining, Petroleum, and Machinery are considered secondary markets.
The tertiary sector is known as the service sector. Instead of securing and processing raw materials into material goods, the Tertiary sector produces services maintenance and repairs, training, or consulting. The ‘tertiary sector’ of the economy, covers a wide gamut of activities like trading, banking and finance, Information Technology (IT) and Software Services, Business Process Outsourcing (BPO), medical services, Real estate, transportation, etc. The other services include housekeeping, tours, nursing, teaching, etc.
The difference between sectors is based on the nature of the activities of these sectors.
Services:
| Primary Sector | Secondary Sector | Tertiary Sector |
| Activities involved farming, mining, fishing, livestock forestry, and other things that include the production of raw materials. | Industries that use basic materials to manufacture new and usable products. | Instead of securing and processing raw materials into material goods, Tertiary sector produces services maintenance and repairs, training, or consulting. |
Techniques used
| Primary Sector | Secondary Sector | Tertiary Sector |
| Traditional techniques | Modern technology and constant innovations are done through research and development strategies for quality control, eliminating waste and inefficiency, and combating pollution | Modern technology and constant innovations are done through research and development strategies for quality control, eliminating waste and inefficiency and combating pollution |
Organised/unorganised
| Primary Sector | Secondary Sector | Tertiary Sector |
| Unorganised | organised | Well organised |
Employment
| Primary Sector | Secondary Sector | Tertiary Sector |
| Primary Sector is the major source of employment and accounts for 44.6% of the workers in India. | The secondary sector contributes 24.7% of the Indian Population. | The service sector is the second major source of employment in India. It provides jobs to 30.7% of the Indian population. |
Related Post:
