The area from where the money comes from in the economy is called the sectors of the economy. There are three types of sectors in an economy

The three-sector model in economics divides economies into three sectors of activity: extraction of raw material (primary), manufacturing (secondary), and the service industries which exist to facilitate the transport, distribution, and sale of goods produced in the secondary sector (tertiary).

The model was developed by ALLAN FISHER, COLIN CLARK, and JEAN FOURASTIE in the first half of the 20th century, and is a representation of the Industrial economy. It has been criticized as inappropriate as a representation of the economy in the 21st century.

SECTORS OF INDIAN ECONOMY

Three Type Of Classification

[1] Nature

(A)- Primary sector 

(B)- Secondary sector

(C)- Tertiary sector

[2] Condition

(A)- Organised sector

(B)- Unorganised sector

[3] Ownership

(A)- Private sector

(B)- Public sector

[1] Nature

(A)- Primary sector:- The primary sector of the economy includes any industry involved in the extraction and production of raw materials, such as farming, logging, hunting, fishing, and mining. The primary sector tends to make up a larger portion of the economy in developing countries than it does in developed countries. In simple words, we can say that The primary sector is what is completely dependent on nature, You cannot imagine it without nature.

(B)- Secondary sector:- The secondary sector of the economy is an economic sector in the three-sector theory that describes the role of manufacturing. It encompasses industries that produce a finished, usable product or are involved in construction. All the factories that come up come in the secondary sector.

The sector generally takes the output of the primary sector and creates finished goods suitable for the sale of the domestic business or consumer and export. Manufacturing is an important activity in promoting economic growth and development. The secondary sector depends on the primary sector for the raw material necessary for production.

For example- The Railway factory, Steel factory, Flour Mill, Textile production, Car manufacturing.

(C)- Tertiary sector:- The tertiary sector of the economy, generally known as the service sector, is the third economic sector of the three-sector theory, (also known as the economic cycle). The service sector consists of the production of services instead of the end product.

Examples of Tertiary sectors- Telecommunication, Hospitality industry/tourism, Mass media, Healthcare/Hospitals, Pharmacy, Information technology.

[2] Condition

(A)- Organised sector:- The organized sector is a sector where terms and conditions of employment are regular and as per rules and regulations passed by the government. The terms and conditions of employment follow the main tenets of various Acts passed by the Government like the Minimum Wages Act, Payment of Gratuity Act, etc

Examples: Government employees, registered industrial workers, Military, etc

(B)- Unorganised sector:- Unorganised sector is a sector that is generally not governed by the rules and regulations that are laid down by the government regarding the conditions of employment. Jobs in the unorganized sector are very low paid. No paid leaves, provident funds, holidays, and medical benefits are given to the employees The sector which called the unorganized sector.

Examples: plantation labor, handloom workers, fishermen, weavers, toddy tappers, beedi workers, etc.

[3] Ownership

(A)- Private sector:- The private sector is the part of the economy, sometimes referred to as the citizen sector, which is owned by private groups, usually as a means of establishment for-profit or non-profit, rather than being owned by the government.

Examples: Sole proprietorships: privately-owned small businesses like contractors, designers, and technicians. Partnerships: examples include small legal firms, accounting practices, and dental offices. Privately owned corporations: larger firms in the leisure, retail, and hospitality industries.

(B)- Public sector:- Portion of the economy composed on of all levels of government and government-controlled enterprises It does not include private companies, voluntary organizations, and households.

Examples: Police, Military, Railway, etc.