Difference Between Primary, Secondary, and Tertiary Sector - Everything You Need To Know | Economy UPSC Notes!

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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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.

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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.

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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.

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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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