Sectors of the Indian Economy

Lesson

Part 1 — the three sectors, GDP, how their importance changes, disguised unemployment and MGNREGA.

In this lesson you will

Classify economic activities into the primary, secondary and tertiary sectors and explain how they depend on each other
Explain GDP and why only final goods and services are counted
Interpret how the shares of the sectors in output and employment have changed, in developed countries and in India
Explain disguised unemployment and underemployment, and ways to create more employment, including MGNREGA 2005

Part 1 at a glance

Concept

Economic activities

An economic activity produces a good or a service in exchange for money (or for one's own use).

Table of three activities: growing vegetables produces a good from nature, making biscuits produces a good by manufacturing, and teaching produces a service
Activity	Produces	Example
Growing vegetables	A good, directly from nature	A farmer near Nashik grows onions
Making biscuits	A good, by manufacturing	A factory in Kolkata bakes biscuits
Teaching	A service	A teacher in Imphal teaches Class 10

Diagram

Table of the three sectors: primary uses natural resources directly (farming, fishing, dairy, forestry); secondary manufactures (sugar mill, textile mill, furniture, bakery); tertiary provides services (transport, storage, banking, trade, teaching, health, IT)
Sector	What it does	Examples	Also called
Primary	Produces goods by using natural resources directly	Farming, fishing, dairy, forestry	Agriculture and related sector
Secondary	Changes natural products into other forms by manufacturing	Sugar mill, textile mill, furniture workshop, bakery	Industrial sector
Tertiary	Provides services that support production and people's needs	Transport, storage, banking, trade, teaching, health care, IT	Service sector