Economics: Sectoral Aspects of Indian Economy: Types of Occupation and Primary Sector (For CBSE, ICSE, IAS, NET, NRA 2022)

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Economic sector are large groups of the economy, grouped according to their place in the production chain, by their kind of work or ownership.

Types of Occupation People Pursue

To earn livelihood people, pursue different types of activities based on their education, skill, family tradition, etc. They are classified into three economic sectors which are as follows:

Types of Occupations

Primary Sector

Primary sector is the sector which is directly related with production of goods extracted naturally from land, forest or sea. Peoples earn their livelihood from activities like agriculture, forestry, mining, livestock and fishery which are complementary to each other. We classify them as primary production and place them in primary sector. Primary sector of our economy includes the following:

Agriculture and Allied Activities

Many people work on the fields to raise crops, which is known as cultivation and this occupation is known as agriculture.


Fishery is occupation in which people catch fish in ponds, rivers or sea to sell them in the market.


Forestry refers to collection of forest product like timber, firewood, etc. and selling them in the market.

Mining and Quarrying

Mining is an occupation in which people work in mining area to extract minerals.

Role and Importance

Let us discuss the role and importance of agriculture as it the predominance occupation in primary sector and has the largest share in national income

Share in National Income

In primary sector agriculture is the predominance occupation and contributes around 15 % to national income.

Providing Employment

Agriculture is the mainstay of Indian economy. Agriculture occupation provides employment to more than 50 % of Indian population.

Providing Food to Millions

Food is the most basic requirement of life. Without agriculture food production and supply would be non-existent.

Providing Raw Materials to Industries

Industries such as sugar, jute, cotton textiles, vanaspati, etc. get the raw materials from agriculture. Without agriculture paper production is not possible and food processing industry is operating because of agriculture only.

Secondary Sector

This sector includes the following production activities:


It refers to production of goods by using raw materials in manufacturing units called factories and industries. Skill people work in manufacturing business.


Construction includes construction of residential and non-residential buildings, roads, parks, etc.

Gas, Water and Electricity Supply

These are essential services.

Role and Importance

The importance of secondary sector can be understood with the following points:

Share in National Income

There is an increase in the contribution of industrial sector due to increase in number of manufacturing units and increase in industrial production. It contributes nearly 30 % in national income.

Employment Generation

With the increasing scope in the contribution of industrial sector, employment generation is also increasing as it provides employment to large population of India.

Creation of Infrastructure

Various facilities like roads, railways, dam, parks, etc. are all part of infrastructure. Infrastructure building is possible because of contribution of large-scale industries which make the machinery and equipment needed to build infrastructure.

Provision of Consumer Goods

Today there are so many products of choices available in the market which is possible because of industrialization.