ECONOM C IOCV E AR N ASLTYOSRI Y S
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Sectoral Economic Analysis Today India is ranked the seventh largest economy, and third largest in terms of Purchasing Power Parity (PPP). The Indian economy’s GDP is pegged at $ 2.9 tn.
Vridhi Bhagnari INTERN AT TEXTILE VALUE CHAIN
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bstract On 15th August 1947, when India got independence from the British rule the country rejoiced and celebrated. But sooner or later a realization came into picture where India had to independently build itself, its economy and its global importance. The people faced distress but then they realized that India did not need a foreign land dominating the country’s land to manage it. After Independence, systematically organizing the economy became a major challenge for the government. However, by 1956 many important and strategic decisions were taken which are still shaping the India economic journey. Today India is ranked the seventh largest economy, and third largest in terms of Purchasing Power Parity (PPP). The Indian economy’s GDP is pegged at $ 2.9 tn. Sector means the division of one whole subject into sub-divisions. Sectors exist mainly to help divide one huge subject into various sub-divisions. It also helps to understand and evaluate the performance of an individual sector.
The economic sector can be defined as the area of an economy in which various businessmen work. The business might be same or different from each other. The economy represents the growth and development of the country as a whole. It is believed that a county’s economy is divided into 5 sectors. They are: 1) PRIMARY SECTOR The primary sector is mainly involved in extracting and harvesting the natural products of the earth. The activities are called Agriculture, Mining and Forestry. The primary sector is also known as extraction sector. The extracted materials are renewable such as fish, wool and wind power or non-renewable in nature such as oil extraction, mining for coal. The primary sector is the key part of a country’s economy. 2) SECONDARY SECTOR The secondary sector is mainly involved in manufacturing, processing and constructing. Basically, the secondary sector produces finished goods from the raw materials which were extracted by the primary sector. The raw materials are in turn converted in to high value-added finished goods. Due to the improved technology, the cost incurred by the secondary sector for production
and labour has been reduced. 3) TERTIARY SECTOR The tertiary sector is mainly involved in companies that provide services to the public directly. Tertiary sector is also called the Service sector. The good manufactured by the secondary sector are distributed to the direct consumers by the tertiary sector. This sector consists of retailing the manufactured goods. Due to improved labour productivity and high paid incomes, the tertiary sector has grown and developed. 4) QUARTERNARY SECTOR This sector involves companies working in intellectual pursuits such as educational businesses. This sector is to be called the intellectual aspect of the economy or the knowledge economy. The intellectual services provided this sector help to drive technological advancement. The various activities involved in this sector are educating, training, development of technology and research and development. 5) QUINARY SECTOR The sector is mainly involved in making top-level decisions. The different types of decisions made | SEPTEMBER 2020
