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Sectors of Indian Economy : Three Important Sectors of Indian Economy

By Balaji

Updated on: March 25th, 2023

There are three Sectors of Indian Economy, namely- Primary Economy, Secondary Economy, and Tertiary Economy. Indian economy is one of the fastest-growing economies in the world. India is predicted to be the second-largest economy in the world by the end of 2050. The three Sectors of the Indian Economy contribute to the economy of India, and they have the potential to grow significantly.

In this article, we have put emphasis on the Three Sectors of the Indian Economy and their contribution. Additionally, we will discuss various features of these three Sectors of the Indian Economy that would help the aspirants during their preparation for the IAS exam.

Table of content

(more)
  • 1. Sectors of Indian Economy (more)
  • 2. Primary Sector of Indian Economy (more)
  • 3. Secondary Sectors of Indian Economy (more)
  • 4. Tertiary Sector of Indian Economy (more)
  • 5. High-Performing Sectors of Indian Economy (more)
  • 6. Organized and Unorganized Sectors of Indian Economy (more)
  • 7. Sectors of Indian Economy UPSC (more)

Sectors of Indian Economy

There are three Sectors of the Indian Economy- Primary, Secondary, and Tertiary. All these sectors are impacted by various factors. Some of the factors include a huge increase in the population of India, low per capita income, and an increasing unemployment rate. The covid-19 pandemic had also a negative impact on these Sectors of the Indian Economy, and they are recovering slowly.

Sectors of Indian Economy

The unemployment rate increased due to the covid and reduced consumer purchases, which impacted government revenue. There are various differences between the Primary, Secondary, and Tertiary sectors of the Indian economy, which we will discuss below.

Primary Sector of Indian Economy

  • The primary sector of Indian economy depends on the availability of natural resources to manufacture goods and execute various processes. Examples of primary sectors are Agriculture, Forestry, Daily, etc.
  • Here, natural resources are essential to keep up the day-to-day operations running. The primary sector is one of the most imperative Sectors of Indian Economy.
  • The primary sector faces the problem of underemployment and disguised employment.
  • Agriculture, with fisheries and forestry, accounts for ⅓ of the GDP of Indian, and it is the single most important contributor to the Indian economy. 18.20% of the GDP contributes to the primary sector of the Indian economy.

Secondary Sectors of Indian Economy

  • The secondary sector of Indian economy is involved with the natural material that is used to manufacture goods and services that are given and then consumed.
  • This sector accounts for transforming raw materials into finished goods that can be sold to consumers.
  • The secondary sector is one of the significant Sectors of the Indian Economy that is responsible for 14% of national employment.
  • In addition, the secondary sector adds nearly a quarter of the GDP. The best examples of this sector include transportation and Industry.

Tertiary Sector of Indian Economy

  • The tertiary sector is also known as the service sector, as it creates services rather than finished items.
  • The tertiary sector contributes significantly in terms of share in GDP in India. Examples of the tertiary sector include IT services, consulting, etc.
  • The tertiary sector is one of the most significant sectors of the Indian economy as it is responsible for a 59% share of the overall GDP of the Indian economy.
  • This sector is alone responsible for 23% of overall employment in India.

High-Performing Sectors of Indian Economy

The three Sectors of Indian Economy that we have mentioned above are the high-performing sectors in India. Below we have mentioned some important points related to these sectors that can be crucial for the upcoming UPSC exam.

  • Agriculture is one of the biggest sectors in India, and more than half the population of India depends on agriculture for sustenance.
  • The industry sector has grown significantly from iron to steel to the automobile industries.
  • The service sector has been one of the most reliable Sectors of the Indian Economy for job opportunities and employment. IT giants like WIPRO, Infosys, and TCS are gaining global recognition and adding a significant contribution to the overall GDP of the country.
  • The economy of India depends on all three sectors that contribute to its development.

Organized and Unorganized Sectors of Indian Economy

The primary, secondary and tertiary is the three sectors of the Indian economy. These sectors are further divided into organized and unorganized sectors on the basis of employment conditions. In the organized sector, the job terms are consistent, and people are assured of employment.

Difference Between Organised Sector and Unorganized Sector

Dispersed and tiny units distinguish the unorganized sector, and it operates outside the official jurisdiction. While there are rules and regulations in place, they are not followed because they are not registered with the government.

Read: Protection of Workers in Unorganized Sector

Sectors of Indian Economy UPSC

The Sectors of Indian Economy is a part of the Growth & Development section of the UPSC Syllabus. Candidates preparing for the UPSC Exam must have in-depth knowledge of this topic, as questions can be asked from it. Here we have covered the Sectors of Indian Economy UPSC notes that would help the candidates during their preparation for the upcoming UPSC exam. In addition, candidates can also take the help of UPSC Books to gain more knowledge on the above-mentioned Sectors of the Indian Economy.

UPSC Notes
Purchasing Power Parity North Atlantic Treaty Organization (NATO)
MSP Regionalism
PM Cares Fund IPCC Report
National Agriculture Market Scheme [E-Nam] National Disaster Management Authority
Paris Agreement TRIPS Agreement
National Health Mission Non-Governmental Organisation – NGO
Israel Palestine Conflict Indus River System
Kyoto Protocol Pradhan Mantri Ujjwala Yojana Scheme
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