SECTORS OF ECONOMY

PRIMARY SECTOR

      In Primary sector of economy, activities are undertaken by directly using natural resources. Agriculture, Mining, Fishing, Forestry, Dairy etc. are some examples of this sector. It is called so because it forms the base for all other products. Since most of the natural products we get are from Agriculture, Dairy, Forestry, Fishing, it is also called Agriculture and allied sector.

      People engaged in primary activities are Called Red-Collar Workers due to the outdoor nature of their work.

SECONDARY SECTOR

      It includes the industries where finished products are made from natural materials produced in the primary sector. An Industrial Production, Cotton Fabric, Sugar Cane Production etc. activity comes under this sector. Hence its the part of a country’s economy that manufactures goods, rather than producing raw materials Since this sector is associated with different kinds of industries, it is also called Industrial Sector.

People engaged in secondary activities are called Blue Collar Workers.

Examples of Manufacturing Sector: Small workshops producing pots, artisan production. Mills producing textiles, Factories producing steel, chemicals, plastic, car. Food production such as brewing plants, and food processing. Oil refinery.

TERTIARY SECTOR

      The tertiary sector of the economy is also called as the service sector. This sector’s activities help in the development of the primary and secondary sectors. By itself, economic activities in tertiary sector do not produce a goods but they are an aid or a support for the production.

Goods transported by trucks or trains, banking, insurance, finance etc. come under the sector. It provides the value addition to a product same as secondary sector. This sector jobs are called white collar jobs.

QUATERNARY SECTOR

These are specialized tertiary activities in the ‘Knowledge Sector’ which demands a separate classification. The quaternary sector is the intellectual aspect of the economy. It is the process which enables entrepreneurs to innovate and improve the quality of services offered in the economy.

Personnel working in Office Buildings, Elementary Schools And University Classrooms, Hospitals And Doctors’ Offices, Theatres, Accounting And Brokerage firms all belong to this category of services.

QUINARY SECTOR:

The quinary sector is the part of the economy where the top-level decisions are made. This includes the government which passes legislation. It also comprises the Top Decision-Makers In Industry, Commerce And Also The Education Sector.

These are services that focus on the Creation, Re-Arrangement And Interpretation of new and existing ideas; data interpretation and the use and evaluation of new technologies. Profession under this category often referred as ‘Gold Collar’ Professions, they represent another subdivision of the tertiary sector representing special and highly paid skills of senior business executives, government officials, research scientists, financial and legal consultants, etc.      

DEVELOPED AND DEVELOPING ECONOMIES

A developed economy is typically characteristic of a developed country with a relatively High Level Of Economic Growth And Security. Standard criteria for evaluating a country’s level of development are Income Per Capita Or Per Capita Gross Domestic Product, the level of industrialization, the General Standard Of Living, and the amount of technological infrastructure.

The Human Development Index (HDI), which quantifies a country’s levels of Education, Literacy, And Health into a single figure, can also be used to evaluate an economy or the degree of development.

The most common metric used to determine if an economy is developed or developing is Per Capita Gross Domestic Product (GDP).

Classification is determined on:

• A country’s GNI per capita, which can change with Economic Growth, Inflation, Exchange Rates, And Population. Revisions to national accounts methods and data can also influence GNI per capita.
• Classification thresholds, which are adjusted for inflation annually using the Special Drawing Rights (SDR) deflator.

The World Bank assigns the world’s economies into four income groups — High, Upper-Middle, Lower-Middle, And Low. As of July 1 2019, the new thresholds for classification by income are:

Of 218 economies, 80 are in the high-income group, 60 in the upper-middle, 47 in the lower-middle and 31 in the low-income group.

 The classification is updated on the first day of July every year. India ($2,020) fall in the lower-middle-income group. Among fellow developing economies—BRICS—India Is The Only Country In The Lower-Middle-Income Group. Others are fall in the upper-middle income group.

MAJOR CHARACTERISTICS OF DEVELOPED COUNTRIES ARE:

1. Average income per capita of the population is generally high.
2. Education level of high average population.
3. Life expectancy of the population is high.
4. Population growth rate per year is relatively small.
5. The death rate per year is relatively small
6. Economic activity in most industrial sectors, as well as export commodities.
7. The majority of the population lives in cities.
8. Relatively high level of population health.

MAJOR CHARACTERISTICS OF DEVELOPING COUNTRIES ARE:

1. Low per – capita income
2. Low levels of human capital
3. High levels of poverty and under-nutrition
4. Higher population growth rates
5. Predominance of agriculture and low levels of industrialization.
6. Low level of urbanization but rapid rural – to – urban migration.
7. Underdeveloped labour, financial, and other markets.
8. A high volatility of the exchange rate which implies greater risk in trading.
9. A reduced opening for accepting foreign investors.