A nations economy can be divided into various sectors to define the proportion of the population engaged in the activity

sector. This categorization is seen as a continuum of distance from the natural environment. The continuum starts with the primary sector, which concerns itself with the utilization of raw materials from the earth such as agriculture and mining. From there, the distance from the raw materials of the earth increases. Primary Sector The primary sector of the economy extracts or harvests products from the earth. The primary sector includes the production of raw material and basic foods. Activities associated with the primary sector include agriculture (both subsistence and commercial), mining, forestry, farming, grazing, hunting and gathering, fishing, and quarrying. The packaging and processing of the raw material associated with this sector is also considered to be part of this sector. In developed and developing countries, a decreasing proportion of workers are involved in the primary sector. About 3% of the U.S. labor force is engaged in primary sector activity today, while more than two-thirds of the labor force were primary sector workers in the mid-nineteenth century. Secondary Sector The secondary sector of the economy manufactures finished goods. All of manufacturing, processing, and construction lies within the secondary sector. Activities associated with the secondary sector include metal working and smelting, automobile production, textile production, chemical and engineering industries, aerospace manufacturing, energy utilities, engineering, breweries and bottlers, construction, and shipbuilding. Tertiary Sector The tertiary sector of the economy is the service industry. This sector provides services to the general population and to businesses. Activities associated with this sector include retail and wholesale sales, transportation and distribution, entertainment (movies, television, radio, music, theater, etc.), restaurants, clerical services, media, tourism, insurance, banking, healthcare, and law.

INDIAN SECTORS Primary Sector When the economic activity depends mainly on exploitation of natural resources then that activity comes under the primary sector. Agriculture and agriculture related activities are the primary sectors of economy. There are many activities that are undertaken by directly using natural resources. Since most of the natural products we get are from agriculture, dairy, fishing, forestry, this sector is also called AGRICULTURE AND RELATED SECTOR.Eg--- Dairy, cultivation, mining of mineral ores etc.

Secondary Sector When the main activity involves manufacturing then it is the secondary sector. All industrial production where physical goods are produced come under the secondary sector. It covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activities. The product is not produced by nature but has to be made therefore some process of manufacturing is essential. Since this sector Gradually became associated with different kinds of industries that came up, it is also called as INDUSTRIAL SECTOR .Eg, Sugar of gur is manufactured form sugarcane, building from bricks and bread from wheat flour etc.

Tertiary Sector When the activity involves providing intangible goods like services then this is part of the tertiary sector. Financial services, management consultancy, telephony and IT are good examples of service sector. These are the activities that helped in development of primary and secondary sector. These activities do not produce goods but they are an aid or support for the production process. Since these activities generate services rather goods, the tertiary sector is also called THE SERVICE SECTOR. Eg,Tranport, storage, communication, banking, trade etc, are some examples of tertiary sector.

Evolution of an Economy from Primary Sector Based to Tertiary Sector Based During early civilization all economic activity was in primary sector. When the food production became surplus peoples need for other products increased. This led to the development of secondary sector. The growth of secondary sector spread its influence during industrial revolution in nineteenth century. After growth of economic activity a support system was the need to facilitate the industrial activity. Certain sectors like transport and finance play an important role in supporting the industrial activity. Moreover, more shops were needed to provide goods in peoples neighbourhood. Ultimately, other services like tuition, administrative support developed.

Interdependency of Sectors: To understand this interdependency, let us take an example of a cold drink. A cold drink contains water, sugar and artificial flavour. Suppose if there is no sugarcane production then procuring sugar will become difficult and costly for the cold drink manufacturer. Now to transport sugarcane to sugar mills and sugar to the cold drink plant needs the services of a transporter. A person or system of persons is required to maintain and monitor all these movements of goods from farm to factory to shop in different locations. That is where role of administrative staffs comes. Let us go back to the farmer. He also needs feritlisers and seeds which is processed in some factory and which will be delivered to his doorstep by some means of transportation. To top it all at every step of these activities we require the proper monetary and banking system. So, in a nutshell this describes how interrelated all sectors of an economy are.

HOW GDP OF OUR COUNTRY IS CACULATED? 1. Values of goods and services should be used rather than adding up the actual numbers. Value of goods and services in three sectors are calculated and then added up. 2. Not every good or service that is produced and sold needs to be counted. It is required to add the final goods and services. 3. Intermediate goods are used in producing final goods and services. The value of final goods already includes the value of all the intermediate goods that are used in making the final goods. 4. The value of final goods and services produced in each section during a particular year provides the total production of the sector for that year. And the sum of production in the three sectors gives what is called the gross domestic product of a country

GDP IS THE VALUE OF ALL FINAL GOODS AND SERVICES PRODUCED WITHIN A COUNTRY DURING A PARTICULAR YEAR. 5. Measurements of the GDP is done by a central govt. Ministry.This ministry with the help of Various govt. Departments of all Indian states, collect information relating to total volume of goods and services and their prices and then estimates the GDP.

HISTORICAL CHANGES IN SECTORS--PRIMARY SECTOR---1. As the methods of farming changed farmers produce much more food then before. 2. Many people could take other activities also. 3. No. of craftsmen and traders increased.

4. Buying and selling activities increased. 5. Besides this people are opting jobs of transporters, army and administrators etc.

SECONDARY SECTOR---1. Over a long time, new methods of manufacturing were introduced, factories came up and started expanding. 2. People who worked in farms, started working in factories. 3. Secondary sector gradually became the most important in total production and employment. 4. Importance of sectors had changed.

TERTIARY SECTORS --1. There has been a further shift from secondary to tertiary sector. 2. Service sector has become most important in terms of total production. 3. Most of the working people are also employed in the service sector.

RISING IMPORTANCE OF TERTIARY SECTOR IN INDIA

1. In any country several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, banks, defence, transport, insurance companies etc are required. 2. Development of agriculture and industry leads to development of services like transport, trade, storage etc. Greater the development of the primary and secondary sectors more would be the demand for such services. 3. As income level rises people start demanding more services like eating out, tourism, shopping, private hospitals, private schools, professional training etc. especially in cities. 4. Over the past decade certain new services such as those based on information and communication technology have become important and essential. The production of these services has been rising rapidly. But remember --1. Not all the service sectors are growing equally well. 2. Service sector in India employs different kinds of people. 3. At one end there are a limited number of services that employ highly skilled and educated workers. 4. On the other hand there are a large number of workers engaged in services like small shop keepers, repair persons, transport persons etc. 5. These people barely manage to earn a living yet they perform these services because no other job is available to them. 6. Hence only a part of this sector is growing in importance.

GROWTH AND STATUS OF DIFFERENT SECTORS IN INDIA.

Closely observe the given graphs. The first graph shows the rupeewise turnover of various sectors in 1973 and 2003. The second graph shows the share of three sectors in the GDP during these 20 years and last graph shows share in providing employment. The first graph shows a massive increase in turnover for all these sectors during 20 years, which shows the way our economy grew. The second graph shows that share of agriculture decreased substantially and that of industry remained static and share of services grew. Particularly the growth of share of services sector was phenomenal from 35% to 55%. Now the third graph paints a distressing picture. The share in providing employment was not in tune with the share in GDP. The agriculture provided employment to 75% workers and this decreased to 60% in 2000, which is not as big a drop as agricultures drop in GDP contribution. On the other hand the growth in employment provided by other two sectors was substantially low. The meaning of this finding is as follows: 1. Majority of people are still employed in agricultural activities. As agriculture provides seasonal employment during cropping season so chances of hidden employment are big. Moreover, as history suggests a developed nations dependency shifts from primary sector towards tertiary sector in all aspects of economic development, so it can be said that India is still way behind because majority still depend on agriculture. 2. Secondary and Tertiary Sector have failed to generate enough employment opportunities making a pressure on primary sector. Although educated and skilled workforce do get employed in secondary and tertiary sector but for unskilled and semi-skilled workers there is still shortage of employment avenues. Other Classifications of Economy Organised Sector

The sector which carries out all activity through a system and follows the law of the land is called organized sector. Moreover, labour rights are given due respect and wages are as per the norms of the country and those of the industry. Labour working organized sector get the benefit of social security net as framed by the Government. Certain benefits like provident fund, leave entitlement, medical benefits and insurance are provided to workers in the organized sector. These security provisions are necessary to provide source of sustenance in case of disability or death of the main breadwinner of the family. Otherwise the dependents will face a bleak future.

Unorganised Sector: The sector which evade most of the laws and dont follow the system come under unorganized sector. Small shopkeepers, some small scale manufacturing units keep all their attention on profit making and ignore their workers basic rights. Workers dont get adequate salary and other benefits like leave, health benefits and insurance are beyond the imagination of people working in unorganized sectors.

Public Sector Companies which are run and financed by the Government comprise the public sector. After independence India was a very poor country. India needed huge amount of money to set up manufacturing plants for basic items like iron and steel, aluminium, fertilizers and cements. Additionally infrastructure like roads, railways, ports and airports also require huge investment. In those days Indian entrepreneur was not cash rich so government had to start creating big public sector enterprises like SAIL (Steel Authority of India Limited), ONGC(Oil & Natural Gas Comission).

Private Sector Companies which are run and financed by private people comprise the private sector. Companies like Hero Honda, Tata are from private sectors.

Government Aided Schemes to Fight Unemployment Government, from time to time, announces and implements various employment scheme to fight unemployment or hidden employment to help the weaker section of society. Shcemes like NREG (National Rural Employment Guarantee) is the latest announced by the UPA government in 2004. This programme guarantees a minimum of 100 days of employment to at least one person from every rural household. This is part of governments effort to ensure the Right to Work to the rural poor citizen.