Sectors of Indian Economy: Primary, Secondary and Tertiary with Examples

The compilation of these Sectors of the Economy of India Notes makes students exam preparation simpler and organised.

Introduction to the Sectors of Indian Economy

India is one of the largest, if not the largest economy in the world. It is predicted to be the second-largest economy in the world by 2050. So, what contributes to the Indian economy? To answer this, we need to divide India’s economy into three parts and study the sectors of the Indian economy in detail. We will also discuss the problems faced by each sector and solutions to these sectors respectively.

Indian Economy

They are three sectors in the Indian economy, they are; primary economy, secondary economy, and tertiary economy. In terms of operations, the Indian economy is divided into organized and unorganized. While for ownership, it is divided into the public sector and the private sector. But today, we are only going to talk about the sectors of Indian economy and what consists of these sectors.

Sectors of Indian Economy

Sectors of Indian Economy

Primary Sector
The primary sector in India is the sector which is largely dependant on the availability of natural resources in order to manufacture the goods and also to execute various processes. The services in this sector are entirely dependant on the availability of natural resources in order to keep the day-to-day operations running.

As we have a clear idea of this sector is, the best example to discuss in this sector is the agriculture sector. The other examples in this sector include fishing and forestry, but agriculture accounts for the largest in this sector.

One of the major problems that this sector faces is underemployment and disguised employment. Underemployment accounts for the workers not working to the best of their capabilities while the latter accounts for the workers not working to their true potential.

As a solution to the problems, the state, as well as the national government, can increase the funds for the irrigation facilities and provide loans for buying high-quality seeds and fertilizers.

Secondary Sector
The economy in the sector is dependent on the natural ingredients which are used to create the services and products offered and which in the end are used for consumption. In terms of value-added to the products and services, this sector is the best sector. The major examples that fall under this category are transportation and manufacturing.

Both these sectors end product is the consumption by the people. This sector is responsible for the employment of almost 14 percent of the entire workforce currently working in India. The secondary sector also contributes to almost 28 percent of the share of GDP. This sector is the backbone of the Indian economy and there are more development and growth in the near future.

Tertiary Sector
This sector contributes the largest in terms of share in GDP in India. The sector is also the service sector and is important when you consider the development of the other two sectors. Like the previous sector, this sector also adds value to the products. This sector is responsible for employing 23 percentage of the workforce out of the total workforce currently working in India.

An example of this sector is all service sectors which IT services, consulting, etc. This sector contributes to almost 59 percent of the total share of GDP. The main problem that this sector is that the jobs which involve lower salaries do not attract much employment. And this remains the future dilemma as India is looking for double-digit growth in the near future.


Explain why the service sector is growing in India with a suitable example.
The employment generation part is not growing its importance in the service sector. This sector employs different types of people with different skill sets. While on the other hand there are only a few services which require the involvement of highly educated and skilled workers. On the other hand are the self-employed people, who, due to lack of opportunity to work, are trying to manage their living.