NCERT Class 10 Economics Chapter 2: Sectors of Indian Economy Complete Notes Part 1

Doorsteptutor material for IEcoS Indian-Economics is prepared by world's top subject experts: fully solved questions with step-by-step explanation- practice your way to success.

Download PDF of This Page (Size: 126K)

Get the Video tutorial on this topic at:

Watch Video Lecture on YouTube: Sectors of Indian Economy

Sectors of Indian Economy

Loading Video
Watch this video on YouTube

When we classify a sector we predominantly say there are three sectors: the primary, secondary and the tertiary sector. However and at this session we would discussing two more important sectors of recent those are Quaternary sector and quinary sector, let’s start with primary sector.

Primary Sector

  • We depend mainly not entirely on natural factors like rainfall & Climate

  • Agriculture

  • Dairy

  • Mining

  • Fishing

  • Forestry

As the name suggests it is a related to primary activities so every things that relates directly to nature would come under primary sectors for example Dairy, Mining, Fishing, Forestry all these are directly dependent on the natural resources and therefore they are classified under primary sector. The next is secondary sector.

Secondary Sector

  • Natural product is changed to other form

  • Product is not produced by nature

  • Factory, workshop or at home

  • Industrial sector

  • Earth Bricks Buildings

Under secondary sector what we are doing is we are changing the form of the natural product that we have so it could be either in the industries or in the factories. These could be either home based industries or big industrial setups so it could be workshops, small factory, big factory or home based artesian workshop and we can say these are classified under industrial sector. We also call secondary sector as industrial sector. For example, from the earth we get bricks and we transform these bricks or use these bricks to make the building and therefore what we are trying to explain here is from the natural resource that we are getting, we are changing it to some other form to use it or utilize it.

Tertiary Sector

  • Aid and support the production

  • Transport to sell them at wholesale or retail shops

  • Communication

  • Banking

  • Storage

  • Trade

  • Generates service Service Sector

Under the tertiary sector what we do is we try to explain any kind of support that is given to primary or secondary sector so any support that we provide to primary or secondary sector would be classified as tertiary sector. So for example, I have an agricultural produce on that piece of land and this agricultural produce that is extra piece of land I want to transport it to some other region. So some of the other set of land I want to transport this extra agricultural produce, so what we do is we will try to use transportation and this transportation would be a tertiary sector because we are providing a support facility to the primary sector.

Now off recent what we have done is we have further classified tertiary sector under different heads. So whatever services are generated are called as tertiary sector therefore we also call this sector as service sector. Now when we extend the dimension of tertiary sector we can go as Quaternary sector.

Quaternary Sector

  • Intellectual activities

  • Government, culture, libraries

  • R & D, education, and IT

  • Consultancy

Quaternary sector involves intellectual activities so all research and education research and development IT related job, consultancy jobs all these would fall under the quaternary services or quaternary sector because we are adding something the services so all kind of better of services or higher order services that would be a good word to use all kind of higher order services would be classified under quaternary sector.

Quinary Sector

  • Highest levels of decision making

  • Top executives or officials

Further the topmost level of services, which involves decision-making would be part of quinary sector and this predominantly includes the top executives and top officials so these are the five sectors that we talk about. Now how do we count goods and services?

How to Count Goods & Services?

  • Farmer Flour Mill Biscuit

Factory Packed Biscuits

  • Final value counted – includes intermediate values

Now this is very important concept to understand to avoid any kind of double counting what we need to do is we need to make sure that the product, that we are adding is added only once so there is a single edition of the product. Let’s take an example, the farmer supplies wheat to the flour mill at a rate of rupees 8 per kg. The flour mill grinds the wheat and provides to the biscuit factory at the rate of 10 rupees per kg. Finally this biscuit factory uses flour, sugar etc. and packaging and finally provides the packed biscuits at a rate of rupees 20 per packet. What does this mean now? This packed biscuit would have the ingredient of wheat, the biscuit factory would again have ingredient as wheat, flour mill would again have ingredient as wheat and the farmer is definitely supplying wheat, so this wheat so this is added at all the four steps.

Now if I take wheat at this stage that won’t be the correct way to add it because this wheat is again ingredient here therefore whenever we are counting goods and services it’s very important that we go on for the final value, that is counted and final value that is the packed biscuit would automatically include all the intermediate stages. So all the intermediate stages which we will be using would automatically be included in final product, so whenever we are counting goods and services, we go for the final product and not for the intermediate product. Now let’s talk about GDP.

Developed by: