Sectoral Aspects of Indian Economy

• To earn a livelihood people take up different types of jobs or activities based on their education, skill, family traditions etc.

• We can classify them into three different sectors of economy :• Classification of Sectors :

Primary Sector

Secondary Sector

Tertiary Sector

Agriculture, Forestry, Fishery, Mining Quarrying.

Manufacturing, Constructions, Gas, Water and Electric Supply

Trade, Hotels, Transport, Storage, Banks, Real Estate, Communications, Public services etc.

Primary Sector

Primary Sector

1. Agriculture and allied activities : cultivation of food items and non-food items.

People living in villages work on fields to raise crops.

LIVESTOCK

Rearing of animals and birds for livelihood is known as livestock occupation.E.g.. Poultry and dairy farming

• 2. Fishery : Some people catch fish from ponds, lakes, rivers etc. and sell them in the market.

3. Forestry : Some people earn their living by collecting forest products like firewood, timber, honey, herbal medicines. etc. and selling them, in the market.

Collecting honey

Timber, fire wood

Fruits and flowers

Medicinal plants

4. Mining and Quarrying : working in mines and quarries to extract minerals.

• The primary sector includes the following –

• 1. Agriculture and allied activities : cultivation of food items and non-food items.

• 2. Fishery : catching fish from ponds, lakes, rivers etc and selling them in the market.

• 3. Forestry : collection of forest products like firewood, medicines etc to sell in the market.

• 4. Mining and Quarrying : working in mines and quarries to extract minerals.

Primary Sector

Secondary occupation

Secondary Occupation:

The occupation that produces useful commodities by processing the raw materials obtained from primary occupation are known as secondary occupation.

Diamond industry Carpenter

The secondary sector • The secondary sector includes the following – • 1. Manufacturing : production of goods in small scale

and large scale industries.

• 2. Construction : constructing buildings, homes, roads, dams, parks, bridges, airports etc.

• 3. Supply of electricity, water and gas : production and supply of these three essential services is a part of this sector.

• Electricity Water and Gas

Secondary occupation

The secondary sector includes the following –

1. Manufacturing : production of goods in small scale and large scale industries.

2. Construction : constructing buildings, homes, roads, dams, parks, bridges, airports etc.

3. Supply of electricity, water and gas : production and supply of these three essential services is a part of this sector.

Small Scale Industry : 1.An industry which is setup by spending less than Rs. 25 lakh on plants and machinery .2.These mostly use labour intensive technology.3.e.g. cottage industriy, handloom industry, handicrafts industry etc.

Large scale industry: 1.These are industries that need huge amount of investment .2.Employs large number of people.3.It uses capital intensice technology.4. e.g. Car industry, iron and steel industry etc.

TERTIARY OCCUPATIONS

Some occupations areSome occupations aresupportive to the primarysupportive to the primaryand secondary occupationsand secondary occupations

All the services and alsoAll the services and alsoactivities like sharpeningactivities like sharpeningweapons. giving tin washweapons. giving tin washand many others supportand many others support primary and secondary primary and secondaryoccupations. All suchoccupations. All suchsupportive occupations likesupportive occupations liketransportation, banking aretransportation, banking arecalledcalledtertiary occupations.tertiary occupations.

                                                                                                                                                                                                

TERTIARY OCCUPATIONS

In tertiary occupations no material is manufacture or obtained .

They do not participate directly in the production.

Tertiary occupation provides all the necessary services .

TradeTransportStorageBank InsuranceCommunicationHealth ServiceEducationEntertainment etc.

The tertiary sector also called the service sector includes the following –

1. Trade, hotels and restaurants.

2. Transport, storage and communication.

3. Banking and insurance.

4. Real estate and business services.5. Public administration (law & order)6. Other services.

The role and importance of the primary sector.1) Share in national incomeAt the time of independence, 50% of national income came from agriculture.This share has reduced in the past years.

2) Providing employmentIt is the occupation of the largest section of people in the country.50% of the population is engaged in agriculture.

3) Providing food to millionsFood is the most basic requirement of life and is provided by agriculture.The increasing population also needs more production of food grains.

4) Providing raw materials to industriesManufacturing industries in the secondary sector get their raw materials from primary sector. For example- sugar industry needs sugarcane, textile industry needs cotton. Production of paper requires a special type of grass and bamboo.Industries like pickles, jams, juices etc. survive because of raw materials from primary sector.

The role and importance of the Secondary sector.1) Share in National Income

Production in small scale and large scale industries has been increasing very fast.

As a result share of secondary sector in national income has doubled in the past years.2) Providing employment After independence, number of people shifting from agriculture to manufacturing sector has increased.

In cities and urban areas, employment is mainly provided by secondary sector.3) Creation of infrastructure

Building infrastructure like roads, bridges, dams, railways, highways etc requires huge machinery and equipment.

These are manufactured in the secondary sector.4) Providing consumer goods

Consumer goods used by households like toothbrush, soap, shoes, scooter etc are produced in this sector.

As consumers, we have a wide range of brands to choose from because of growth in this sector.

The role and importance of tertiary sector or service sector.

1)Share in National IncomeAmong all the three sectors, share of the tertiary sector to national income is the maximum.Main contribution comes from trade, hotels and financial services like banking and insurance.

2)Providing employmentThe service sector provides a wide variety of jobs to choose from the fields of arts, science, commerce, law etc.The higher salaries in this sector also attracts more people to this

sector.Also, increase in the number of educated people has led to growth of this sector.

3)Attracting funds from foreign countriesInflow of foreign money into the country is very important for growth.The service sector attracts foreign money into the country in the areas of banking, hotels, insurance, transport etc.The growth of computer industry in our country has also attracted foreign funds.

4)Contribution to exportsSelling our goods to foreign countries is a major source of income.India’s services in the areas of IT, legal services etc have led to growth in exports.

TERTIARY OCCUPATIONS

The tertiary sector also called the service sector includes the following –

1. Trade, hotels and restaurants.

2. Transport, storage and communication.

3. Banking and insurance.

4. Real estate and business services.

5. Public administration (law & order)

6. Other services.

1) Primary sector - dependent on secondary sector for consumer goods and raw

materials.

Primary sector - dependent on tertiary sector for services like transport,

communication, banking etc.

2) Secondary sector- dependent on primary sector for food and raw materials.

Secondary sector- dependent on tertiary sector for services like transport, communication, banking etc.

3) Tertiary sector - dependent on primary sector for food.

Tertiary sector - dependent on secondary sector for consumer goods and equipments.

Occupational Distribution of working Population in India (percentage) in 2009-10

(i) Agriculture 50.19 (Largest share)

(ii) Mining and quarrying 0.61

(iii) Manufacturing 13.33

(iv) Electricity, water etc 0.33

(v) Construction 6.10

(vi) Trade, Hotels etc. 13.18

(vii) Transport, storage etc 5.06

(viii) Financial, business services etc. 2.22

(ix) Other services etc. 8.97

Contribution of the different sectors to National Income and employment

Primary Sector Secondary sector Tertiary Sector

Share in National Income 15% 28% 55.20%

Employment share 50% 20.60% 29.40%

2009 -2010 Data from Economic survey

The Inter relationship between the three Sectors