interrelationships between primary, secondary and tertiary sectors of Indian economy ?
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Answer:
People are engaged in various economic activities within the economy. There are several ways to group them: primary/secondary/tertiary; organized/unorganized; and public/private. These groups are called sectors.
People are engaged in various economic activities within the economy. There are several ways to group them: primary/secondary/tertiary; organized/unorganized; and public/private. These groups are called sectors.
Primary Sector:When we produce a good by exploiting natural resources, it is an activity of the primary sector. This is because it forms the base for all other products that we subsequently make.
Since most of the natural products we get are from agriculture, dairy, fishing, forestry, this sector is also called agriculture and related sector.
Secondary Sector: This sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. It is the next step after primary.
Since this sector gradually became associated with the different kinds of industries that came up, it is also called as industrial sector.
Tertiary Sector: After primary and secondary, there is a third category of activities that falls under tertiary sector. These activities help in the development of the primary and secondary sectors.
Thus it is clear that the various economic activities, though grouped into three different categories, are highly interdependent. Further examples of economic activities can be cited which shows how the three factors are dependent on each other.
(a) Farmers sell sugarcane to a particular sugar mill. If these farmers refuse to sell sugarcane, the mill will have to close down. This is an example of the secondary (industrial) sector being dependent on the primary sector. The manufacturing sector depends on the primary sector for raw materials.
(b) In turn, the primary sector depends on the secondary sector. One aspect of dependence is the fact that the output of the former is used as inputs in the latter. If fabric manufacturers decided not to buy from the Indian market and import all cotton from abroad, the plight of the Indian cotton cultivators is unimaginable. Indian cotton cultivation will become less profitable and the farmers may even go bankrupt, if they cannot quickly switch to other crops. Cotton prices will fall. The other aspect is that output of the manufacturing sector is used as inputs in agricultural production. For example, farmers buy many goods such as tractors, pumpsets, electricity, pesticides and fertilizers. If the prices of fertilizers or pumpsets go up, cost of cultivation of the farmers would rise and their profits would be reduced.
(c) People working in industrial and service sector get the food that they need from the primary sector. If the farmers decide not to sell their products food will become scarce and workers of the industrial and tertiary sectors will suffer. On the same footing, if there is a strike by transporters and lorries (service sector) refuse to carry vegetables, milk and other food items from the place of their production to the markets, the farmers will be unable to sell their products.
(d) The industrial sector thrives on the services from the tertiary sector and the existence of the service sector would be meaningless if it had no services to render to the other two sectors.
Hope it is helpful