(i) Primary Sector (or Agriculture sector). It includes all those economic activities which are connected with extraction and production of natural resources.
- This sector produce goods and services by exploiting natural resources.
- This sector is unorganised and use traditional techniques.
- Activities related to agriculture, forestry fishing, mining and animal husbandary are included in this sector.
- This sector continue to be the largest employer in most of the developing nations like that of lndia.
(ii) Secondary Sector (or Industrial sector). It includes all activities which are concerned with the processing materials which have already been extracted at the primary stage, e.g., the mining of iron ore is primary industry, but manufacture of steel is secondary industry.
- It is also known as manufacturing sector.
- This sector transforms one good into another by creating more utility from it.
- It is organised sector and use better techniques.
- It includes manufacturing units, small scale units, large firms, big corporates and multinational corporations.
- This sector has failed to provide employment to the surplus workers of primary sector.
(iii) Tertiary Sector (or Service sector). It is concerned with providing support services to primary and secondary sector and includes transport, banking, insurance, warehousing, communication, advertising, etc. It facilitates smooth flow of goods and services in the economy. Importance of tertiary sector has been observed in the last decade and its contribution to GDP has also risen.
- This sector provides useful services to primary and secondary sectors for these functioning of their working.
- It is organised sector and use better techniques.
- Services related to banking, insurance, trade and communication come in this sector.
- This sector‘s sharing in the employment is increasing.
