Sectors of Indian Economy
The Indian economy is divided into three main sectors based on the nature of work. These are the Primary, Secondary, and Tertiary sectors. Every economic activity falls into one of these groups. The Primary sector includes activities that use natural resources directly. For example, farming, fishing, and mining are primary activities. This sector provides raw materials for everything else. It is often called the 'Agriculture and related sector.' In India, this sector is the biggest employer.
Concepts (2)
GDP is the total market value of all finished goods and services produced within a country's borders in a specific time. It measures the size of the economy. We only count final products to avoid 'double counting' intermediate goods.
GDP is the total market value of all finished goods and services produced within a country's borders in a specific time. It measures the size of the economy. We only count final products to avoid 'double counting' intermediate goods. For example, we count the price of a final loaf of bread. we do not separately count the flour used to make it, as its price is already included in the bread.
No sector can function alone in a modern economy. They are linked like a chain. For example, a car (Secondary) needs iron from a mine (Primary) and a salesman to sell it (Tertiary). If one link breaks, the whole economy suffers.
No sector can function alone in a modern economy. They are linked like a chain. For example, a car (Secondary) needs iron from a mine (Primary) and a salesman to sell it (Tertiary). If one link breaks, the whole economy suffers. This concept explains why a drought in the primary sector can lead to inflation in the service sector.
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