Sectors of the Economy – Primary, Secondary, and Tertiary
Sectors of the Economy – Primary, Secondary, and Tertiary
The economy of any country can be divided into different sectors based on the nature of economic activities performed. This classification helps in understanding the structure of the economy, employment patterns, and the contribution of each sector to GDP.
Primary Sector
This sector deals with natural resources. It includes activities where natural resources are directly extracted and utilized. This sector forms the foundation of all economies.
Examples:
- Agriculture: Growing crops like wheat and rice.
- Fishing: Harvesting fish from rivers and seas.
- Forestry: Harvesting timber.
- Mining: Extracting coal, minerals, and crude oil.
Characteristics:
- Labour-intensive (relies heavily on human labour).
- Vulnerable to weather conditions and climate change.
- Still dominant in many developing countries like India.
Secondary Sector
This sector involves processing raw materials from the primary sector into finished goods. It is also known as the industrial sector.
Examples:
- Manufacturing: Cars, electronics, textiles.
- Construction: Building roads, dams, houses.
- Food Processing: Converting wheat into bread.
Characteristics:
- Relies on capital, machinery, and technology.
- Higher productivity than the primary sector.
- Key driver of industrialisation and economic development.
Tertiary Sector
This is the services sector, where services are provided to individuals and businesses. It doesn’t produce goods directly but supports production and consumption.
Examples:
- Banking: Providing financial services.
- Healthcare: Hospitals and clinics.
- Retail: Shopping malls and e-commerce.
- Education: Schools, universities.
Characteristics:
- Relies heavily on skilled labour.
- Forms a large share of GDP in developed economies.
- Expanding rapidly in emerging economies like India, especially IT and financial services.
Evolution of Economies
- In agrarian economies, the primary sector dominates.
- In industrial economies, the secondary sector leads.
- In post-industrial economies, the tertiary sector becomes the largest contributor.
Example:
- India (Post-1991) – Rapid shift towards the tertiary sector, especially IT and services exports.
- USA – Advanced economy where over 75% of GDP comes from services.
Statement-based MCQs
MCQ 1
Consider the following statements regarding sectors of the economy:
- The primary sector includes activities that extract natural resources directly from nature.
- The secondary sector contributes the highest to India’s GDP.
- The tertiary sector includes only government services.
Which of the statements given above is/are correct?
a) 1 only
b) 1 and 2 only
c) 2 and 3 only
d) 1, 2 and 3
MCQ 2
Which of the following economic activities belong to the secondary sector?
- Food processing
- Road construction
- Textile manufacturing
Select the correct answer using the code given below:
a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3
MCQ 3
Consider the following statements:
- Primary sector employment is declining in developed countries.
- The tertiary sector is more capital-intensive than the primary sector.
- Most people in India are employed in the secondary sector.
Which of the statements given above is/are correct?
a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3
MCQ 4
Which of the following is a characteristic feature of the tertiary sector?
a) Direct extraction of natural resources
b) Processing of raw materials into finished goods
c) Provision of intangible services
d) None of the above
MCQ 5
In which of the following scenarios does the primary sector play the dominant role?
a) A country focusing on software exports
b) A developing country heavily dependent on agriculture
c) An economy driven by manufacturing and exports
d) A country with 80% employment in the service sector
