Sectors of Indian Economy: Primary Sector, Important Sectors of Indian Economy

By BYJU'S Exam Prep

Updated on: November 14th, 2023

There are three Sectors of Indian Economy, namely- Primary Economy, Secondary Economy, and Tertiary Economy. Together, these three Sectors of the Indian Economy form the backbone of the Indian economy, contributing to the country’s growth and development. India is predicted to be the second-largest economy in the world by the end of 2050, and these sectors of the Indian Economy would contribute significantly to achieving the goal.

This article aims to provide an overview of the sectors of the Indian economy, their contribution to the GDP, and their role in shaping the country’s economic growth. Additionally, we have discussed various features of these three Sectors of the Indian Economy that would help the aspirants during their UPSC exam preparation.

Sectors of Indian Economy

The economy of India is classified into three sectors, namely primary, secondary, and tertiary. These sectors are based on the nature of economic activities involved in the production and distribution of goods and services. The primary sector includes activities related to natural resources, such as agriculture, forestry, and mining. The secondary sector involves manufacturing and construction activities, such as the production of goods and infrastructure development. The tertiary sector, which is also known as the service sector, includes activities related to services, such as education, healthcare, transportation, and communication.

Sectors of Indian Economy

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. 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 and consulting.
  • 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.

  • 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 are 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. 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.

Contribution of Different Sectors in GDP of India 2022

India’s Gross Domestic Product (GDP) is a measure of the country’s economic performance. It is the sum of the total value of goods and services produced in the country. The contribution of different sectors to the GDP of India in 2022 was as follows: the Primary sector was estimated as 21.82 percent, the secondary was estimated as 24.29 percent, and the tertiary sector contributed 53.89 percent to the GDP of India in 2022.

Sectors of Indian Economy UPSC

The Sectors of Indian Economy is a part of the Growth & Development section of the UPSC Economics Syllabus. Understanding the different sectors of the Indian economy is important for the UPSC exam, as questions related to economic policies, growth, and development are frequently asked in the exam. Candidates preparing for the Civil Services Exam must have in-depth knowledge of this topic to answer the questions that 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 IAS exam.

Sectors of Indian Economy UPSC Questions

Question 1: Communication and advertising come under which sector? a. Service Sector, b. Primary Sector, c. Secondary Sector, d. None of the above

Answer: Service Sector

Question 2: Which sector has emerged as the largest producing sector? a. Primary Sector, b. Tertiary Sector, c. Technology Sector, d. Secondary Sector

Answer: Tertiary Sector

Question 3: Tertiary Sector is also called? a. Operational Sector, b. Managing Sector, c. Service Sector, d. Accounting Sector

Answer:  Service Sector

UPSC Notes
Purchasing Power Parity North Atlantic Treaty Organization
Minimum Support Price Regionalism
PM Cares Fund IPCC Report
National Agriculture Market Scheme National Disaster Management Authority
Paris Agreement TRIPS Agreement
National Health Mission Non-Governmental Organisation
Israel Palestine Conflict Indus River System
Kyoto Protocol Pradhan Mantri Ujjwala Yojana Scheme
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