What are the 4 Sectors of the Economy?
By Balaji
Updated on: February 17th, 2023
The 4 Sectors of the Economy are primary, secondary, tertiary, and quaternary. Economic activities are human actions that can generate revenue. The fourth or quaternary sector of the economy is associated with the cognitive and knowledge-based economy. The extraction of raw materials is the primary sector of the economy, whereas the services industry is the tertiary sector.
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1. 4 Sectors of Economy
4 Sectors of Economy
All 4 sectors of the Economy have their specific functions. They play a significant role in contributing to the country’s overall economic growth.
- Primary sector: They rely on the environment and prioritise the use of natural resources such as land, building materials, water, vegetation, and minerals. Hunting, religious activities, fishing, forestry, farming, and mining are all included.
- Secondary sector: The second sector of the Economy adds importance to raw materials by transforming them into valuable products. They include manufacturing, processing, and construction (infrastructure) industries.
- Tertiary sector: It includes both production and trade. The sector involves transport, consumption, and communication facilities.
- Quaternary sector: It is also known as the ‘Knowledge Sector,’ and it is concerned with the consumption of information-based services such as tax consultants, software developers, statisticians, and even mutual fund managers.
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