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Activities & 
Sectors of the 
Indian 
Economy
Page 2


Activities & 
Sectors of the 
Indian 
Economy
Introduction to Economic Sectors
Primary Sector
Extraction and production 
of natural resources and 
raw materials
Secondary Sector
Manufacturing and 
processing raw materials 
into finished goods
Tertiary Sector
Services that support 
economic activities and 
fulfill consumer needs
These sectors represent different types of economic activities based on the nature of work and 
resources used, collectively forming the backbone of the Indian economy.
Page 3


Activities & 
Sectors of the 
Indian 
Economy
Introduction to Economic Sectors
Primary Sector
Extraction and production 
of natural resources and 
raw materials
Secondary Sector
Manufacturing and 
processing raw materials 
into finished goods
Tertiary Sector
Services that support 
economic activities and 
fulfill consumer needs
These sectors represent different types of economic activities based on the nature of work and 
resources used, collectively forming the backbone of the Indian economy.
What Are Economic Activities?
Economic activities are human efforts that contribute to the creation of goods and services to 
satisfy human needs and wants. They involve:
P r o d u cti o n: Creating goods or providing services
D i s t r i b u ti o n: Moving goods from producers to consumers
C o n s u m p t i o n: Using goods and services to satisfy needs
These activities collectively contribute to India's GDP and provide employment across various 
sectors of the economy
Page 4


Activities & 
Sectors of the 
Indian 
Economy
Introduction to Economic Sectors
Primary Sector
Extraction and production 
of natural resources and 
raw materials
Secondary Sector
Manufacturing and 
processing raw materials 
into finished goods
Tertiary Sector
Services that support 
economic activities and 
fulfill consumer needs
These sectors represent different types of economic activities based on the nature of work and 
resources used, collectively forming the backbone of the Indian economy.
What Are Economic Activities?
Economic activities are human efforts that contribute to the creation of goods and services to 
satisfy human needs and wants. They involve:
P r o d u cti o n: Creating goods or providing services
D i s t r i b u ti o n: Moving goods from producers to consumers
C o n s u m p t i o n: Using goods and services to satisfy needs
These activities collectively contribute to India's GDP and provide employment across various 
sectors of the economy
Primary Sector: Foundation of Indian 
Economy
45-50%
Workforce
Nearly half of India's 
workforce is engaged in 
primary sector activities
16-18%
GDP Contribution
Share of primary sector in 
India's GDP (2025 data)
1st
Milk Production
India ranks first globally in 
milk production
The primary sector involves extraction and harvesting of natural resources including 
agriculture, forestry, fishing, mining, and dairy farming.
Major challenges include high dependence on monsoon rains, low productivity compared to 
global standards, and fragmented landholdings limiting economies of scale.
Page 5


Activities & 
Sectors of the 
Indian 
Economy
Introduction to Economic Sectors
Primary Sector
Extraction and production 
of natural resources and 
raw materials
Secondary Sector
Manufacturing and 
processing raw materials 
into finished goods
Tertiary Sector
Services that support 
economic activities and 
fulfill consumer needs
These sectors represent different types of economic activities based on the nature of work and 
resources used, collectively forming the backbone of the Indian economy.
What Are Economic Activities?
Economic activities are human efforts that contribute to the creation of goods and services to 
satisfy human needs and wants. They involve:
P r o d u cti o n: Creating goods or providing services
D i s t r i b u ti o n: Moving goods from producers to consumers
C o n s u m p t i o n: Using goods and services to satisfy needs
These activities collectively contribute to India's GDP and provide employment across various 
sectors of the economy
Primary Sector: Foundation of Indian 
Economy
45-50%
Workforce
Nearly half of India's 
workforce is engaged in 
primary sector activities
16-18%
GDP Contribution
Share of primary sector in 
India's GDP (2025 data)
1st
Milk Production
India ranks first globally in 
milk production
The primary sector involves extraction and harvesting of natural resources including 
agriculture, forestry, fishing, mining, and dairy farming.
Major challenges include high dependence on monsoon rains, low productivity compared to 
global standards, and fragmented landholdings limiting economies of scale.
Primary Sector: Key 
Features & Importance
Raw Material Source: Provides essential inputs for 
manufacturing industries
Rural Livelihood: Sustains majority of rural 
households
Food Security: Ensures domestic food production 
and availability
Export Potential: Agricultural products contribute 
significantly to exports
Emerging Focus Areas: Blue Economy 
(sustainable use of ocean resources), organic 
farming, and climate-resilient agriculture 
practices
Government Support: PM-KISAN (income support), 
Soil Health Card (soil testing), National Fisheries 
Policy (sustainable fishing)
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FAQs on PPT: Activities & Sectors of Economy - Geography for UPSC CSE

1. What are the primary sectors of the economy, and how do they differ from each other?
Ans. The economy is primarily divided into three sectors: primary, secondary, and tertiary. The primary sector involves the extraction and harvesting of natural resources, such as agriculture, mining, and fishing. The secondary sector focuses on manufacturing and construction, transforming raw materials into finished products. The tertiary sector encompasses services, including retail, healthcare, education, and finance. Each sector plays a crucial role in the economy, contributing to overall growth and development.
2. How does the primary sector contribute to the economy?
Ans. The primary sector is fundamental to the economy as it provides raw materials necessary for the secondary sector. It employs a significant portion of the population, especially in developing countries, and supports livelihoods through agriculture, forestry, and mining. Moreover, this sector is vital for food security and sustains other sectors by supplying essential resources. Its growth can lead to increased income and improved living standards in rural areas.
3. What role does the secondary sector play in economic development?
Ans. The secondary sector is crucial for economic development as it adds value to raw materials through manufacturing and processing. It creates jobs and drives technological advancements, leading to increased productivity. This sector also supports infrastructure development, which is essential for overall economic growth. As countries industrialize, the secondary sector often becomes a significant driver of GDP growth and urbanization.
4. Why is the tertiary sector increasingly important in modern economies?
Ans. The tertiary sector has gained prominence in modern economies due to the shift towards service-oriented industries. As economies develop, there is a growing demand for services such as healthcare, education, finance, and tourism. This sector contributes significantly to GDP and employment, often more than the primary and secondary sectors combined. The rise of technology and digital services has further accelerated the growth of the tertiary sector, making it a cornerstone of contemporary economic structures.
5. How do the activities of these sectors interrelate within an economy?
Ans. The activities of the primary, secondary, and tertiary sectors are interdependent and form a cohesive economic system. The primary sector supplies raw materials to the secondary sector, which transforms these materials into products for consumption. The tertiary sector provides services that facilitate production and distribution, including logistics, marketing, and financial services. This interconnectedness ensures a balanced economic ecosystem where each sector supports and enhances the others, leading to overall economic stability and growth.
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