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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