Introduction

In India, Central Statistical organization divides the economy into three sectors as under:

(i) Primary Sector.

This sector consists of agriculture and allied activities, such as animal husbandry, forestry, fisheries, mining, etc. It is primary sector, because it is the first and oldest occupation of man. Goods produced through primary occupations are essential for human existence.

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These goods are also used by the industrial sector as raw material. Agriculture is the backbone of Indian economy. It is the source of livelihood to the majority of population. Animal husbandry, forestry are major sources of occupation in case of developing and undeveloped economies.

Primary occupation consists of all those activities of man, which have their relationship with nature or physical environment. Therefore, all activities connected with procuring, gathering or producing things from materials provided by nature are called Primary Occupations.

These occupations include gathering, hunting, fishing, grazing or rearing of animals, agriculture lumbering, mining etc. Primary occupations are greatly influenced by physical environment.

The people of backward and developing countries are mostly employed in primary occupations. Their economic level is also normal or below normal. As the economy develops, dependence on primary sector reduces while on other sectors like secondary and tertiary increases considerably.

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(ii) Secondary Sector:

This sector includes manufacturing, processing, construction, electricity, gas and water supply. Secondary sector is also known as industrial or manufacturing sector. The primary sector cannot satisfy all human requirements. We require certain industrial goods to make our life comfortable.

The development of secondary sector is must for the faster growth of primary sector. In case of developed economies major source of national income is earned through industrial sector.

The rapid economic development is possible with the development of this sector. Therefore, secondary occupation consists of manufacturing, construction, electricity, gas and water supply etc.

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(iii) Tertiary Sector:

This tertiary sector consists of trade, transport, communication and other services. These services help to increase their efficiency.

These services also provide them the supplies needed for living such as education, health, transport, communication, banking, insurance, administration and professions etc.

Without these services one cannot even dream of the existence of a modern civilized world. The standard of living among people is high only when they enjoy all such personal and public services. Tertiary occupation has become a synonym for developed countries. Such occupations are rarely in existence among backward countries.