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Difference Between Primary, Secondary, and Tertiary Sector - Everything You Need To Know | Economy UPSC Notes!
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The difference Between Primary, Secondary, and Tertiary Sectors is based on the ‘nature of the activities of these sectors. The activities in primary, secondary, and tertiary sectors are interdependent on each other. A relatively large number of goods and services are produced through the various production processes in the primary, secondary, and tertiary sectors. In addition, the three industries employ a sizable workforce to manufacture these goods and services.The higher the development of the primary and secondary sectors, the more would be demand for the tertiary/service sector.
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The Difference Between Primary, Secondary, and Tertiary Sectors is one of the most important topics for the UPSC IAS exam. It covers a significant part of the Economy subject in the General Studies Paper-3 syllabus and current events of national importance in UPSC prelims.
In this article, we shall study in detail the meaning of the Primary, secondary, and tertiary sectors and the differences between them.
Difference Between Primary, Secondary, and Tertiary Sector – Everything You Need To Know | Economy UPSC Notes: Download PDF here!
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Difference Between Primary, Secondary, and Tertiary Sectors
The difference between Primary, Secondary, and Tertiary Sectors are listed in the table below.
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Difference Between Primary, Secondary, and Tertiary Sectors |
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|
Parameters |
Primary Sector |
Secondary Sector |
Tertiary Sector |
|
Services |
This sector is responsible for providing raw materials and base products for goods and services. |
This industry manufactures natural products in various usable forms. |
This sector provides services to both the primary and secondary sectors. |
|
Also known as |
The primary sector is also known as agriculture or allied sector services. |
The secondary sector is also known as the manufacturing or industrial sector. |
Tertiary sector is also known as the service sector. |
|
Techniques used |
This sector makes use of traditional techniques. |
This sector uses more reliable methods of production. |
This industry performs operations/tasks using contemporary logistical technology. |
|
Organized/Unorganized |
The primary sector is an unorganized sector. |
The secondary sector is an organized sector. |
The tertiary sector is a well-organized sector. |
|
Employment rate |
In contrast to developed countries, this industry employs a sizable portion of the workers in developing countries like India. |
The employment rate in this sector is an equilibrium as a specialized set of skills is required to find employment. |
The employment share of this sector has grown throughout the years. |
|
Examples |
Examples of primary sectors are agriculture, forestry, and mining. |
Examples of the secondary sector are manufacturing units, small-scale units, large firms, and multinational corporations. |
Examples of tertiary sectors are Banking, communication, and trade. |
Know more about the Software sector!
What is Primary Sector?
The primary sector involves the creation of raw materials, such as mining, fishing, livestock, forestry, and farming. It's characterized by the transformation of natural resources into primary products, which serve as raw materials for other industries.
- The primary sector contributed to around 18.20% of the GDP in 2022.
- It's crucial for India's overall socioeconomic growth.
- It employs approximately 50% of the population.
- The majority of India's national income comes from the primary sector.
Know more about the Dairy sector in India!
What is Secondary Sector?
The secondary sector focuses on producing finished, marketable goods and relies on the primary sector for raw materials. It includes manufacturing, construction, and mining and contributes 24% of India's GDP.
- It converts raw materials into finished goods.
- It is also known as the production or manufacturing sector.
- Industrialization contributes to its growth.
Know more about the Textile sector in India!
What is Tertiary Sector?
The tertiary sector, often called the service sector, plays a vital role in supporting the primary and secondary sectors. It involves services for enterprises and end-users and encompasses banking, transportation, and insurance.
- It provides services to enhance the quality of life.
- Over 80% of workers in the services sector are in developed nations.
- India ranks 15th in the world in service production.
- A significant portion of India's Gross Value Added (GVA) comes from the services sector.
- IT and business services contribute substantially to the sector's output.
Know more about Economic growth development!
Difference Between Primary, Secondary, and Tertiary Sectors UPSC Mains Previous Year Question
Q1. Account for the failure of the manufacturing sector in achieving the goal of labor-intensive exports rather than capital-intensive exports. Suggest measures for more labor-intensive rather than capital-intensive exports. (UPSC 2017)
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Difference Between Primary, Secondary, and Tertiary Sector FAQs
What are the 3 types of industries?
here is 3 types of industries in the economy: primary, secondary, and tertiary industries.
What is the Secondary Sector?
Secondary sector is also known as the manufacturing sector as it involves the manufacturing of raw materials, food, textiles, and construction activities.
What are the tertiary sectors?
Tertiary sectors are also known as service sectors because it includes service-related activities such as transport, finance, business, real estate, and activities related to health care.
What is the primary sector?
Primary sector is related to agricultural-related activities. It includes activities related to the extraction of raw materials. Some examples of primary sector activities are mining, agriculture, forestry, and fishing.
What are examples of the secondary industry?
Some examples of secondary industries are manufacturing, food processing industries, processing of raw materials, oil refineries, textile businesses, and construction activities.
What is an example of a Primary industry?
Primary industries are those that gather or extract raw materials such as logging and forestry, mining, fishing, and trapping, as well as agriculture, oil, and gas extraction.
Why primary sector is important?
Primary sector is important because it forms the foundation for all the other sectors. It is a labor-intensive sector. The primary sector makes up more than 40% of India's GDP. It employs more than 60% of the workforce. It is the area of the Indian economy that uses the greatest labor.