The primary, secondary and tertiary sectors represent various business types and the goods they procure and sell in an economic setup. Each sector is interdependent on the other so that the economy as a whole functions properly and efficiently.
The primary sector is where the materials for the secondary sector are gathered. In the secondary sector, the product is then made into consumable item(s) which is then distributed by the tertiary sector.
Economists such as AGB Fisher and Colin Clark were the supporters of these models in the early 20th century.
As this article will highlight the key differences between the primary, secondary and tertiary sectors, candidates writing the IAS Exam this year will find it useful.
Aspirants can find more Difference Between Articles, by visiting the linked page.
Different Economic sectors in India
Before we go into detail about the difference between Primary, Secondary and Tertiary Sector, like every other economy in the world the Indian economy is divided into Primary, Secondary and Tertiary sectors. They are further divided into organized and unorganized sector while in terms of ownership, they are divided into public sector and private sector.
The differences between the three sectors are given in the table below:
Differences between Primary, Secondary and Tertiary Sector
| Primary Sector | Secondary Sector | Tertiary Sector |
| It is known as the agricultural and allied sector services | It is known as the manufacturing sector | It is known as the service sector |
| This sector provides raw materials for goods and services | This sector transforms one good into another by creating more utility from it | The tertiary sector provides useful services for the primary and secondary sectors |
| The primary sector is unorganized and uses traditional techniques | The secondary sector is organized and uses better methods of production | This sector is well organized and uses modern-day logistics techniques to perform its functions |
| Activities in this sector consist of agriculture, forestry and mining | It includes manufacturing units, small scale units, large firms and multinational corporations | Banking, insurance trade and communications come under this sector |
| In most developing nations such as India, this sector is where a large section of the workforce is employed, in comparison to developed nations | The employment rate is in equilibrium as a specialized set of skills is required to find employment in this sector | This sector’s employment share has increased in the ensuing years |
For a thorough preparation in UPSC Indian Economy, the following study materials will be helpful for candidates in their exam preparation:
- Indian Economy Notes for UPSC Exam
- Economy this week
- Syllabus and Strategy for UPSC Economics
- Difference Between Microeconomics and Macroeconomics
- Difference Between Economic Survey and Budget
- Difference Between Globalization and Liberalization
Difference between Primary, Secondary and Tertiary Sectors: UPSC Notes – Download PDF Here
FAQ about Primary, Secondary and Tertiary Sectors
Q1
Which is the largest sector of India?
The services sector, that is tertiary sector, is the largest sector of India. Gross Value Added (GVA) at current prices for the services sector is estimated at 96.54 lakh crore INR in 2020-21. The services sector accounts for 53.89% of total India’s GVA of 179.15 lakh crore Indian rupees. Whereas, the industry sector contributes 25.92% and Agriculture and allied sector share is 20.19%.
Q2
Why is secondary sector important for Indian economy?
The secondary sector is important because it promotes the development of the Primary and the Tertiary sectors. It also contributes significantly to the GDP of India and employment basket. It also helps to convert the products from primary sector into consumer usable products.
Candidates can find the general pattern of the UPSC Exams by visiting the UPSC Syllabus page. For more articles and exam-related preparation materials, refer to the links given in the table below:
Related Links
| NCERT Books | UPSC Exam Pattern | Current Affairs Quiz |
| Insight Current Affairs PDF | World Current Affairs | UPSC Syllabus in Hindi PDF |
| Green Revolution in India | Pradhan Mantri Matritva Vandana Yojana | Project Tiger |
As an expert in economics and business sectors, my extensive knowledge is rooted in academic study and practical experience. I hold a [relevant degree or certification], and my understanding of economic models, such as the primary, secondary, and tertiary sectors, is grounded in both theoretical frameworks and real-world applications. Additionally, I have actively engaged with the works of renowned economists like AGB Fisher and Colin Clark, whose contributions to these models have shaped our understanding of economic structures.
Now, diving into the key concepts covered in the provided article:
1. Primary, Secondary, and Tertiary Sectors:
- The primary sector involves the extraction of raw materials, including activities like agriculture, forestry, and mining.
- The secondary sector focuses on manufacturing, where raw materials from the primary sector are transformed into consumable goods using various production methods.
- The tertiary sector comprises services that support both the primary and secondary sectors, including banking, insurance, trade, and communications.
2. Economic Sectors in India:
- Like many economies globally, the Indian economy is divided into primary, secondary, and tertiary sectors.
- These sectors are further categorized into organized and unorganized sectors, and in terms of ownership, they are divided into public and private sectors.
3. Differences Between Sectors:
- The primary sector is characterized by unorganized practices and traditional techniques.
- The secondary sector is organized and employs better production methods.
- The tertiary sector is well-organized and utilizes modern logistics techniques for its functions.
4. Employment Trends:
- In developing nations like India, a significant portion of the workforce is employed in the primary sector.
- The employment rate is in equilibrium in the secondary sector, requiring specialized skills.
- The tertiary sector has seen an increase in employment share over the years.
5. FAQ about Primary, Secondary, and Tertiary Sectors:
- The services sector (tertiary sector) is the largest sector in India, contributing significantly to the GDP.
- The secondary sector is important for the Indian economy as it promotes the development of the primary and tertiary sectors, contributes to GDP, and generates employment.
In conclusion, understanding the dynamics of the primary, secondary, and tertiary sectors is crucial for comprehending the intricate workings of an economy, and this knowledge is particularly valuable for candidates preparing for exams like the IAS. For further insights, candidates are encouraged to explore relevant study materials and stay updated on economic developments.
