What are the 3 Main Sectors of the Economy?
By BYJU'S Exam Prep
Updated on: November 9th, 2023
The 3 main sectors of the economy are the primary sector, the secondary or manufacturing sector, and the tertiary or service sector. The primary sector involves extracting raw materials for industries. The secondary sector involves the manufacture and production of finished goods, and the tertiary sector is concerned with the offering of intangible goods and services related to production such as tourism, retail, entertainment, etc.
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3 Main Sectors of the Economy
Based on the activities, the economy is divided into the following three sectors–
- Primary Sector: The activities in the primary sector are carried out using natural resources and serve as the basis for all other goods. This includes mining, agriculture, forestry, dairy, fishing, etc. The primary sector is also known as agriculture and allied sector as agriculture, forestry, dairy, and fishing are the major sources of raw material consumption.
- Secondary Sector: The secondary sector includes the work of manufacturing, i.e. it includes the business which is responsible for the production of finished or usable products. This means that the secondary sector takes raw materials from the primary sector and converts it into products that are sold to consumers.
- Tertiary Sector: The tertiary sector is not responsible for the production of goods. Instead, the tertiary sector refers to the services of the other two sectors. Services included are guidance, experience, outreach, meditation, emotional labor, retail, tourism, banking, IT, and entertainment services for firms and end users.
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