Economic Activities

Class 06 Social Science

Some economic activities share similar characteristics and based on this, they can be grouped together or classified into broader groups called economic sectors. The three main types of economic sectors are primary, secondary and tertiary economic sectors.

Primary Activities

Those economic activities in which people are directly dependent on nature to produce goods are known as primary activities.

For example, work involving cultivation of grains and vegetables from agricultural farms, collecting wood from the forests, extracting coal from mines, fish from fisheries, eggs from poultry farms, etc., are all primary sector economic activities.

The most common primary activities are agriculture, mining, fishing, raising livestock, forestry, etc.

Secondary Activities

Economic activities in which people are dependent on outputs of the primary sector and transform them to produce goods are known as secondary activities.

The secondary sector includes the construction of buildings, roads, etc., and providing utilities like water, electricity, gas and other such necessities. It also includes the manufacturing of products in factories and production units to process raw material from the primary sector into some other form that can be further sold or consumed.

Some examples of secondary sector activities include the processing of grains obtained from agricultural fields to make flour in mills, extraction of oil from groundnut and processing of tea leaves to derive tea. Similarly, wood from the forest is converted into furniture and paper, cotton is used to make clothes, and steel from iron ore is used to make automobiles like cars, trucks, etc.

Tertiary Activities

All those economic activities that provide support to people involved in primary and secondary activities are called tertiary activities.

These include services that we may not be able to see but which still play a very important role. For example, the driver of a truck transports grains and vegetables from the farm to a factory or the market.

The fruit or vegetable vendors sell the farm produce to household consumers. Similarly, doctors, nurses, teachers, lawyers and pilots provide their services to those who need them. There are technicians who repair and service electronic items including mobile phones and televisions, mechanics who repair vehicles like cars and tractors, and electricians who ensure regular supply of electricity.

Similarly, communication services through mobile and internet, software development, and services at hotels, restaurants, banks, schools, hospitals, airports, shops, warehouses, etc. are all examples of tertiary sector economic activities. This sector is also called the service sector.

Interdependence Among Sectors

The three types of economic activities or economic sectors play an important role in the process of conversion of natural raw materials into finished products for final consumption.