Indian Economic Sectors
Primary, Secondary, Tertiary Sectors - Complete Notes for SSC GD Exams
Introduction
The Indian economy is divided into three main sectors based on the type of economic activity. This classification is very important for SSC GD and almost every competitive exam.
1. What Are Economic Sectors?
Economic sectors represent groups of economic activities. They help understand which part of the economy contributes to growth, employment, and GDP.
Simple Definition:
Economic sectors are categories of activities that produce goods or provide services.
2. Types of Economic Sectors in India
The Indian economy is divided into:
Primary Sector
Secondary Sector
Tertiary Sector
3. Primary Sector
(Also called Agriculture Sector)
The primary sector includes activities that extract natural resources from nature.
Examples:
Features:
- Based on natural resources
- Largest employer in India
- Contributes less to GDP compared to services
- Highly dependent on monsoon
Important Point:
The primary sector provides raw materials for industries.
4. Secondary Sector
(Also called Industrial or Manufacturing Sector)
This sector includes activities where products are manufactured by converting raw materials into finished goods.
Examples:
Features:
- Uses raw materials from primary sector
- Creates finished goods
- Raises income and productivity
- Important for industrial development
Important Point:
Industrial growth increases employment and boosts exports.
5. Tertiary Sector
(Also called Service Sector)
This sector includes services that support primary and secondary sectors.
Examples:
Features:
- Fastest-growing sector in India
- Largest contributor to GDP
- Provides high-skilled employment
Important Point:
India is known worldwide for IT and software services.
6. Contribution of Each Sector in India
Tertiary Sector
Largest contributor to GDP (around 50 percent)
Secondary Sector
Around 25 percent of GDP
Primary Sector
Around 15 to 18 percent of GDP
But employs more than 40 percent of population
Important Observation:
This mismatch causes disguised unemployment in agriculture.
7. Organized and Unorganized Sector
Economic activity is also classified as:
Organized Sector
Registered, follows laws, offers job security.
Examples:
- Banks
- Government offices
- Corporate companies
- Registered factories
Unorganized Sector
Not registered, no job security or fixed wages.
Examples:
- Small shops
- Street vendors
- Farmers
- Daily wage workers
8. Public and Private Sector
Based on ownership:
Public Sector
Owned by the government.
Examples:
- Indian Railways
- LIC
- SBI
- ONGC
- NTPC
Private Sector
Owned by individuals or companies.
Examples:
- TCS
- Infosys
- Reliance
- HDFC Bank
9. Mixed Economy
India is a mixed economy. This means both public sector and private sector operate together.
Features:
- Government controls essential sectors
- Private sector participates in business and industry
- Promotes competition & welfare
10. Sectoral Employment Pattern in India
Primary sector
Highest employment (especially rural areas)
Secondary sector
Moderate employment (manufacturing, construction)
Tertiary sector
Fast-growing employment (IT, banking, retail)
11. Shift in Economic Pattern
India has moved from:
This means the economy is becoming more service-based.
12. Examples for Quick Revision
Primary Sector Examples:
- Wheat farming
- Coal mining
- Fishing
- Forestry
- Animal farming
Secondary Sector Examples:
- Car manufacturing
- Cement production
- Textile factories
- Steel plants
Tertiary Sector Examples:
- ATM service
- Banking
- Transport
- Teaching
- Tourism
13. Key Terms Asked in SSC Exams
- GDP Contribution
- Employment share
- Organized vs Unorganized sector
- Public sector vs Private sector
- Mixed economy definition
- Tertiary sector growth
- Disguised unemployment in primary sector
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