India, a nation with a mixed economy, is growing faster, heaving a humungous population. As per the International Monetary Fund (IMF) 2019 data, India is ranked 5th, surpassing the United Kingdom with $2.651 trillion.
Some sectors of the economy contribute to the overall growth of the Indian economy. Moreover, three sectors are responsible for the smooth functioning of a booming economy.
Three crucial sectors of the Indian economy
- Primary sector
2. Secondary sector
3. Tertiary sector
- Primary sector
Activities are completed by using natural resources. This sector is based on agriculture and nature, which are entirely based on the availability of natural resources. People engaged in the primary sector are known as “red-collar workers”. This process includes the production of goods by exploiting natural resources. By combining fisheries and forestry, agriculture contributes to one-third of India’s gross domestic product (GDP).
India is rich in the primary sector as agriculture is the backbone of India’s economy. Apart from this, India is the leading country in the production of milk and the second largest country in the production of wheat, fish, groundnuts and sugar. While in the case of an activity like dairy, India depends on animal biological processes and fodder availability.
Several revolutions took place in the history of the Indian economy. That is “Black revolution” happened for the production of petroleum. The “Brown revolution” was organised for the production of leather as well as cocoa. Not only this but there are also some challenges which are being faced in this sector. These hurdles are underemployment and disguised employment.
- Secondary Sector
This sector involves activities converted from natural resources or products to other forms, including manufacturing or the activities associated with industrial estates. The secondary sector is the next consecutive step of the primary industry. People working in this sector are called “blue-collar workers.”.
In other words, the secondary sector includes those industries where finished products are made and not produced by nature. An example of this sector is any industry which converts cotton into yarn or a sugar industry which turns the sugarcane into sugar pieces. This sector is associated with various categories of industries, known as the “Industrial sector”.
- Tertiary sector
This sector helps develop products which fall under the primary and secondary sectors. This sector does not indulge in producing the commodities but provides support in the production process. Example: A truck or any other means transporting the material from one place to another, but does not help in producing those goods. Similarly, a bank that provides farmers loans to grow crops but doesn’t get involved in the growing process falls under the tertiary sector category.
This third category of the Indian economy provides service to the people. Hence, this sector is known as the “service sector” based on this process. People who work in this category are known as “white-collar”. Some examples of the service sector are nurses, teachers, doctors, barbers, washermen etc.
Among all these three sectors, it is noted that the importance of the tertiary sector is rising. According to the government survey, the tertiary or service sector has emerged as the largest producing sector in India. Several reasons explain why the service sector is replacing the primary industry and leading to the top.
Why is the tertiary sector rising more?
- Demand for basic services
- The licence raj
- Lack of means to promote Industries other than government
- Development of primary sector
- The rise in income of people
- Lack of skilled labour
