SECTORS OF AN ECONOMY

 SECTORS OF AN ECONOMY

Every economy tries to maximise the returns of economic activities in which it is involved. Whatever

be the organising principles of an economy, the economic activities are broadly classified into three

broad categories which are known as the three sectors of the economy:

(i) Primary Sector

This sector includes all those economic activities where there is the direct use of natural resources as

agriculture, forestry, fishing, fuels, metals, minerals, etc. In some of the economies, mining activities

are considered a part of secondary sector though we see direct use of natural resources here. Broadly,

such economies term their agricultural sector as the primary sector. This is the case in India.

(ii) Secondary Sector

This sector is rightly called the manufacturing sector which uses the produce of the primary sector as

its raw materials. Since the manufacturing is done by the industries this sector is also called the

industrial sector—bread and biscuits, cakes, automobiles, textiles, etc.

(iii) Tertiary Sector

This sector includes all those economic activities where different ‘services’ are produced such as

education, banking, insurance, transportation, tourism, etc. This sector is also known as the service

sector

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