Sectors on the basis of nature of activity

Primary Sector

Primary sector includes the activities that depends on natural resources for producing goods. For example, cotton is natural product which depends on rainfall, climate and sunshine. Thus, cotton farming is an activity of primary sector. Similarly, minerals, agriculture, diary, fishing, forestry, etc falls under primary sector.

Secondary sector

Products produced from primary sector are transformed into new form of products via manufacturing processes. For example, manufacturing of clothes from cotton, producing sugar or jaggery from sugarcane. Production is done in factories or industries, thus this sector is also known as industrial sector.

Tertiary Sector

Tertiary sector is supporting sector to primary and secondary sector, which helps in development of these sectors. Tertiary sector generally provides services rather than producing goods. Thus it is also called as service sector. Tertiary sector includes the services like banking, insurance, transportation, communication, trade. However, it also includes teachers, doctors, lawyers, etc.

Gross Domestic Product

The sum of total production of all three sectors in called Gross Domestic Product GDP of country.
Higher the GDP, better is the economy of the country. GDP is measured by central government with help of state government and union territories. They collect all information about products and services and their prices and estimate the GDP.

Historical Changes in Sectors

In initial stages, development of primary sector, agricultural sector was dominant. This is because most of peoples are employed in this sector. Due to change in methods of farming, production of food also increased, thereby creating the opportunities like trading, craft person, transporters, storage, etc. With the period of time and invention of technologies, manufacturing plants factories come up. Thus, more people started working in factories. This increased production and thus, secondary sector became dominant. In past 100 years the tertiary sector became the most important due to huge demand of services like banks, teachers, transporters, doctors.

Importance of Tertiary Sector

India is developing country, thus the provision of basic services like health, education, police stations, court, municipal corporations, defence, etc are done only by government. Growth of agriculture and industrial sector increased the demand for support services like transportation, banking, storage, etc. people enjoy increased good income and live better life. Development of information and communication services created the need in people’s life. However the growth in tertiary sector is not equitable. Skilled workers earns high income whereas, semiskilled or unskilled workers earn very low income.

Employment in India

Though tertiary sector is dominant, maximum of population is employed in primary sector. If tertiary sector’s contribution is GDP is increased still maximum population is employed in primary sector. This is because secondary and tertiary sectors are producing less employment opportunities. This suggest that more than half of workers in the country are employed in primary sector that contributes quarter part of GDP. in contrast, secondary and tertiary sectors employ less than half population but produces three fourth of GDP. more employment can be created in the following manner

• Government should provide loan at affordable rate to farmers and small manufacturer to get financial support for their work.
• Constructing new dams and canals helps people in primary sector to create more employment opportunities like fishing, agriculture, etc.
• Increased production in secondary and tertiary services creates new job opportunities like selling the farm products, transportation, storage, trade, etc.
• Promoting industries and tertiary sectors activities in semi rural areas can generate more employment opportunities like cold storage, honey collection centers, etc
• Building educational institutions can generate 20 lakhs of jobs.
• Increasing health cares centres increases job opportunities like doctors, nurses, workers, administrators.
• Increase in tourist place increases job opportunities.

Organised and unorganised sector

Organised sector are those places of work that get regular employment thus, the work is assured. These sectors are registered by government and they follow rules and regulations laid by government. These acts are Factories Act, Minimum Wages Act, Payment of Gratuity Act, etc. normally these organisations work outside the control of government. Unorganised sectors are small shops, repairs works, etc.

Private and Public Sector

Classification of sector is also done on the basis of assets and deliver services.

• Private Sector: In private sector assets are owned and services are deliver by private individual or company. For example: Tata Iron and Steel Company Limited or Reliance Industries Limited. Main motive of private sector is to earn profits. Peoples who use services offered by private sectors need to pay money in turn.
• Public Sector: In public sector assets are owned and services are provided by government. For example: Railways, Post offices, Defence, etc. the purpose of public sector is not just to earn profit. It also provides services at low cost

Keywords: Primary sector, Secondary sector, Tertiary sector, Private sector, Public sector, Gross Domestic Product

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