Question

What is meant by sector of economy? Discuss the characteristics of secondary sector. The term sector of economy refers to the division of the economy into various sub-categories based on the types of activities people are involved in to earn a living. These sectors can be broadly classified into three categories: primary, secondary, and tertiary sectors. - Primary Sector: Involves activities related to natural resources, such as farming, fishing, mining, and forestry. - Secondary Sector: Focuses on manufacturing and industrial activities where raw materials are processed into finished goods. - Tertiary Sector: Involves services such as healthcare, education, banking, tourism, and retail.

Answer 1

Answer: The economy is divided into different sectors based on the nature of economic activities people engage in. These include the Primary sector, Secondary sector, and Tertiary sector. The Secondary sector, also known as the manufacturing or industrial sector, plays a vital role in transforming raw materials into finished goods, thereby adding value to resources.

Meaning of Sectors of Economy

• Primary Sector: Involves extraction and utilization of natural resources (e.g., agriculture, fishing, mining, forestry).
• Secondary Sector: Involves processing raw materials into finished or semi-finished goods through industries and factories.
• Tertiary Sector: Provides services such as healthcare, banking, education, tourism, trade, and transport.

Characteristics of Secondary Sector

• Manufacturing Focus: This sector deals with transforming raw materials from the primary sector into useful finished goods (e.g., cotton to cloth, sugarcane to sugar).
• Industrial Growth: Includes small-scale, large-scale, and cottage industries, contributing to industrialization.
• Employment Generation: Provides large-scale employment opportunities, especially in urban and semi-urban areas.
• Value Addition: Adds value to natural resources, increasing their utility and economic worth.
• Contribution to GDP: Plays a significant role in increasing the Gross Domestic Product (GDP) and promoting exports.
• Urbanization Link: Growth of industries in the secondary sector contributes to the expansion of towns and cities.
• Capital Intensive: Requires investment in machinery, infrastructure, and technology for mass production.

Conclusion

The Secondary sector is the backbone of industrial development. By processing raw materials into finished goods, it not only adds value to resources but also generates employment, boosts exports, and contributes significantly to the nation’s economy. It bridges the gap between the Primary and Tertiary sectors, making it indispensable for balanced economic growth.