Sectoral Constitution of Economy :
Any economy is divided into 3 parts on the basis of sector :
- Primary sector : This sector includes agriculture, animal husbandry, forestry, fisheries etc.
- Secondary sector : This sector includes manufacturing and industries.
- Tertiary sector : This sector includes banking, insurance, communication etc. services.
Agriculture has the biggest contribution in GDP in a developing economy, while it has the least contribution in a developed country. The contribution of tertiary i.e. the service sector is the highest in a developed economy. Expansion of banking, insurance, communication, etc. services in a country is an indicator of development. Therefore, the service sector should contribute the most in the GDP of an economy.