Sectors of Indian Economy
As per the experts in the field of economy, there are mainly three sectors of Indian economy which includes the details as given below for respective sector.
- Activities are associated with production of goods by exploitation of the natural resources.
- This sector forms the basis for all other products.
- Since most of the natural products we get are from agriculture, dairy, fishing, Forestry etc so this sector is also called “Agriculture” sector.
- For instance-cotton cultivation, Wheat cultivation, Sugarcane cultivation
- Activities in which natural products are converted into the usable forms through the ways of manufacturing come under secondary sector.
- It is also called “Industrial sector” or “Manufacturing sector”.
- For example using cotton fiber from the plant we spin, yarn and weave cloth.
- Also using sugarcane as raw material we make ‘sugar’ or ‘gur’(Jaggery).
- These are the activities that help in the development of the primary sector and the secondary sector.
- They are the support or aid for the production processes.
- Also known as “service sector” as they generate services.
- E.g. Transportation, Storage, Communication, Banking & trade.
- Some services that do not aid production also come under this category like teachers, doctors, administrators, cobbler, lawyers etc.
Note- We need not count individual goods and services to know the total production in each sector. We only count final goods and services because the value of the final goods already includes the value of all the intermediate goods that are used in making the final good.
- The value the final goods and services produced in each sector during a particular year provides the total production of the sector for that year.
- The sum of production in the 3 sectors gives Gross Domestic Product (GDP).
- It is the value of final goods and services produced within our country during the year.
These notes on Indian Economy have been contributed by Plutus Academy, one of the best coaching institute for SSC and Bank Po examinations.