The industrial sector of the economy is concerned with the manufacture of final products (vehicles, processed foods) and intermediate items (iron, steel, machinery) and services.
Classification of Industries
Primary Industry
They use natural raw materials. The primary sector refers to that sector of the economy which uses natural resources to produce goods. The primary sector dominates in underdeveloped countries.
— The Indian economy’s primary sector accounts for 18.20% of the GDP.
— About 48.9% of the workforce is employed in the primary sector overall.
- Hunting and Gathering
- Pastoralism
- Commercial Livestock Rearing
- Agriculture
- Mining Sector
Secondary Industry
The secondary sector includes the industrial sector which processes natural raw materials and converts them into finished products.
The secondary sector is the backbone of the economy which employs people who moved from the primary sector and have gathered certain skills.
In India secondary sector has not achieved its true potential and the service sector has emerged as the largest sector in the economy.
One of the important sectors of the Indian economy, the secondary sector accounts for 14% of all employment in the country.
Furthermore, the secondary sector contributes almost a quarter of the GDP. Transportation and industry are the two best illustrations of this industry.
The sector includes Agro-based industries, the automobile industry, the iron-steel industry etc.
- Cotton Textile Industry
- Jute Industry
- Sugar Industry
Tertiary Industry
Tertiary activities are related to the service sector. The majority of tertiary tasks are carried out by consultants, professionals with formal training, and a skilled workforce.
The tertiary sector offers a wide range of services, including travel, banking, insurance, education, trade, transportation, and communication. Instead of dealing with raw resources, it deals with finished and final commodities.
The primary distinction between the secondary and tertiary sectors is that services rely more significantly on the specialist knowledge, experience, and abilities of the workforce than on industrial processes, technology, or production methods.
- India is the fifteenth largest country in the world in terms of services output.
- Employment: This sector provides employment to 23% of the workforce and is the fastest-growing sector, with a growth rate of 7.5% in 1991-2000.
- The tertiary sector depends on scientific research and innovative developments to increase productivity.
- Developed countries employ more than 80% of the services sector.
- The service sector accounts for around 60% of the total size of the economy, about 38% of total exports and two-thirds of the total FDI inflows into India.
- Global exports: The share of the Indian service sector in global services exports is expected to increase from 3.3% to 4.2% in 2022.
Quaternary Sector/Knowledge-based Industries
Knowledge-based and requiring particular knowledge and technical abilities, this area of the service sector is knowledge-oriented.
The majority of primary and secondary employment has been supplanted by the quaternary sector and the tertiary sector as the foundation for economic growth. Like some tertiary activities, quaternary activities can be
outsourced. Resources, the environment, or market localization are not constraints on them.
Quinary Sector
It includes the creation, re-arrangement and interpretation of ideas, data interpretation, business analysis, critical thinking, evaluation and upgradation of new technologies.
The term “gold collar” is frequently used to describe senior company executives, government officials, research scientists, financial and legal experts, and other professionals in this group sector including Senior business personnel, CEOs, MDs, Scientists, Higher government officials, Financial and legal experts etc.
