Introduction
Economic activities involve production, distribution, and consumption of goods and services. These activities are divided into three sectors: Primary, Secondary, and Tertiary.
Primary Sector
This sector involves the extraction and production of natural resources. Examples include agriculture, mining, fishing, and forestry. The key characteristic of this sector is its dependency on natural resources.
Secondary Sector
The secondary sector is concerned with manufacturing and processing. It converts raw materials from the primary sector into finished goods. Examples include factories, construction, and textile production.
Tertiary Sector
The tertiary sector provides services instead of goods. This includes transport, banking, education, healthcare, and communication. It supports the primary and secondary sectors.
Comparing Sectors
Initially, the primary sector was the most important, but there has been a gradual shift to the secondary and tertiary sectors as economies develop. In developed economies, the tertiary sector dominates.
Interdependence of Sectors
All three sectors are interlinked. The output of one sector serves as input to another. For example, agriculture (primary) provides raw materials for industries (secondary).
Employment in Sectors
The primary sector employs the most people in developing countries. However, as economies develop, there is a shift towards secondary and tertiary sectors. Currently, the tertiary sector offers the most employment in many developed countries.
GDP Contribution
Gross Domestic Product (GDP) measures the economic output of a country. The contribution of each sector to GDP varies across different economies and changes with the level of development.
Organised vs. Unorganised Sector
The organised sector is registered and follows government rules, whereas the unorganised sector is unregulated, offering no job security and low wages. A significant portion of India's workforce is in the unorganised sector.
Public vs. Private Sector
The public sector is government-owned and aims at public welfare, while the private sector is owned by individuals or companies and is profit-driven. Examples of the public sector include railways and postal services, while examples of the private sector include IT companies and retail chains.
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