Primary activity includes activity directly with nature, Secondry involves manufacturing goods using raw materials while tertiary activities include services..... The classification of economic activities into primary, Secondry and tertiary is very useful to ascertain GDP contribution by each of the sector thereby determining the overall growth and development of the country and to understand the problems associated with each sector individually and hence take the required corrective measures to find out the share of employment in different sectors......

The classification of economic activities into primary, secondary, and tertiary is an important framework used in economics to understand the structure of an economy.


The primary sector includes activities that involve the extraction and production of natural resources. This includes agriculture, forestry, fishing, mining, and oil and gas extraction. The primary sector is important because it provides the raw materials that are used in the production of goods and services in other sectors.


The secondary sector includes activities that involve the processing and manufacturing of raw materials into finished goods. This includes industries such as construction, manufacturing, and utilities. The secondary sector is important because it adds value to the raw materials produced by the primary sector and creates new goods and services that can be sold in the marketplace.


The tertiary sector includes activities that involve the provision of services to individuals and businesses. This includes industries such as retail, finance, healthcare, and education. The tertiary sector is important because it provides the services that are necessary to support the production and consumption of goods and services in other sectors.


The classification of economic activities into primary, secondary, and tertiary is useful for several reasons:

1. Helps to understand the economic structure: The classification helps to understand the economic structure of a country or region. For example, countries with a large primary sector are often referred to as "resource-rich" countries, while countries with a large tertiary sector are often referred to as "service-based" economies.

2. Facilitates economic planning: The classification helps to facilitate economic planning by providing a framework for policymakers to identify areas where investment is needed. For example, a country with a small manufacturing sector may want to focus on developing this sector to create jobs and increase economic growth.

3. Aids in international trade: The classification helps to facilitate international trade by providing a common language for describing economic activities. This makes it easier for countries to negotiate trade agreements and for businesses to identify potential trading partners.

In conclusion, the classification of economic activities into primary, secondary, and tertiary is a useful framework for understanding the structure of an economy. It helps policymakers to identify areas for investment, facilitates international trade, and provides a common language for describing economic activities.