There are three types of production
1. Primary production
2. Secondary Production
3. Tertiary or Service Production
1. Primary Production:
1. Primary production is carried out by ‘extractive’ industries like agriculture, forestry, fishing, mining and oil extraction.
2. These industries are engaged in such activities as extracting the gifts of nature from the earth’s surface, from beneath the earth’s surface and from the oceans.
2. Secondary Production:
1. This includes production in manufacturing industry, turning out semi-finished and finished goods from raw materials and intermediate goods, conversion of flour into bread or iron ore into finished steel.
2. They are described as manufacturing and construction industries.
3. Such as the manufacture of cars, furnishing, clothing and chemicals, as also engineering and building.
3. Tertiary Production
1. Industries in the tertiary sector produce all those services which enable the finished goods to be put in the hands of consumers.
2. These services are supplied to the firms in all types of industry and directly to consumers.
3. Ex. cover distributive traders, banking, insurance, transport and communications. Government services, such as law, administration, education, health and defence, are also included.
