Classify sectors on the bases of economic activities

1. Primary Sector:

Simply speaking primary sector refers to that sector of the economy which uses natural resource to produce goods.


Natural factors play crucial role in the production process. Agriculture and allied activities like mining, fishery, forestry, diary and poultry are included in this sector.

Primary sector dominates in under-developed countries.

2. Secondary Sector:

Secondary sector is also called as manufacturing sector or industrial sector. The primary sector cannot satisfy all human requirements. We need certain industrial goods to make our lives comfortable. The sector which transforms one physical good into another is called secondary sector. The manufacturing, electricity, gas, water supply etc. are included in this sector.

3. Tertiary Sector:

The service sector of the economy is called tertiary sector. Services of various kinds like education, health, banking, insurance, trade and transport are included in this sector. In advanced countries, the contribution of tertiary sector to national income is the highest.

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