BU S I N ES S S T U D IE S

I C A TIO N OF BU SI N E S S
CHAPTER 2 CLASSIF
 PRIMARY
SECTOR
The primary sector of the economy includes any industry involved in the extraction and production of 
raw materials, such as farming, logging, fishing, forestry and mining.
The primary sector tends to make up a larger portion of the economy in developing countries than it does in 
developed countries. For example, in 2018, agriculture, forestry, and fishing comprised more than 15% of GDP in 
sub-Saharan Africa[ but less than 1% of GDP in North America.
In developed countries the primary sector has become more technologically advanced, enabling for example
the mechanization of farming, as compared with lower-tech methodsin poorer [Link] developed
economies may invest additional capital in primary means of production: for example, in the United States 
corn belt, combine harvesters pick the corn, and sprayers spray large amounts of insecticides, herbicides and 
fungicides, producing a higher yield than is possible using less capital-intensive techniques. These
technological advances and investment allow the primary sector to employ a smaller workforce, so developed
countries tend to have a smaller percentage of their workforce involved in primary activities, instead having a
higher percentage involved in the secondary and tertiary sectors.
Secondry
sector
This sector generally takes the output of the primary sector (i.e. raw materials) and creates 
finished goods suitable for sale to domestic businesses or consumers and for export (via distribution
through the tertiary sector). Many of these industries consume large quantities of energy, require 
factories and use machinery; they are often classified as light or heavy based on such quantities. This
also produces waste materials and waste heat that may cause environmental problems or pollution
 (see negative externalities). Examples include textile production, car manufacturing, and handicraft.[1]
Manufacturing is an important activity in promoting economic growth and development. Nations that
export manufactured products tend to generate higher marginal GDP growth, which supports higher 
incomes and therefore marginal tax revenue needed to fund such government expenditures as 
health care and infrastructure. Among developed countries, it is an important source of well-paying
jobs for the middle class (e.g., engineering) to facilitate greater social mobility for successive
generations on the economy. Currently, an estimated 20% of the labor force in the United States is
involved in the secondary industry
GRAPH OF GDP OF SECONDRY SECTOR
TERTAIRY SECTOR
The tertiary sector consists of the provision of services instead of end products.
Services (also known as "intangible goods") include attention, advice, access,
experience and affective labor. The production of information has been long
regarded as a service, but some economists now attribute it to a fourth sector,
called the quaternary sector.
The tertiary sector involves the provision of services to other businesses as
well as to final consumers. Services may involve the transport, distribution and
sale of goods from a producer to a consumer, as may happen in wholesaling
 and retailing, pest control or entertainment. The goods may be transformed in
the process of providing the service, as happens in the restaurant industry.
However, the focus is on people by interacting with them and serving the
customers rather than transforming the physical goods.
DE-INDUSTRIALISATION
THE ECONOMIC DE-INDUSTRIALISATION OF INDIA REFERS A PERIOD OF
REDUCTION IN INDUSTRIAL BASED ACTIVITIES WITHIN THE INDIAN
ECONOMY FROM 1757 TO 1947. THE PROCESS OF DE-INDUSTRIALISATION IS
AN ECONOMIC CHANGE IN WHICH EMPLOYMENT IN THE MANUFACTURING
SECTOR DECLINES DUE TO VARIOUS ECONOMIC OR POLITICAL REASONS.[1]
 THE DECLINE IN EMPLOYMENT IN MANUFACTURING IS ALSO FOLLOWED BY
THE FALL IN THE SHARE OF MANUFACTURING VALUE ADDED IN GDP. THE
PROCESS OF DE-INDUSTRIALISATION CAN BE DUE TO DEVELOPMENT AND
GROWTH IN THE ECONOMY AND IT CAN ALSO OCCUR DUE TO POLITICAL
FACTORS. IN OTHER WORDS, THE TERM DE-INDUSTRIALISATION MEANS A
GENERAL REDUCTION IN THE INDUSTRIAL CAPACITY AND CAME INTO
PREVALENCE IN INDIA WITH THE DECLINE AND COLLAPSE OF THE
HANDICRAFTS INDUSTRY BY EXTERNAL COMPETITION FROM BRITISH-
MANUFACTURED PRODUCTS DURING THE 19TH CENTURY.
MIXED ECONOMY
THE ECONOMY OF INDIA HAS TRANSITIONED FROM A  MIXED PLA NNED ECONOMY TO A MIXED MIDDLE-INCOME DEVELOP ING SOCIAL MARKET ECONOMY W ITH NOTABLE STATE PARTICIPATION IN STRATEGIC [Link] IS THE WORLD'S FIFTH-LARGEST ECONOMY BY NOMINAL GDP A ND THE THIRD-LARGEST BY PURCHASING POWER P ARITY (PPP). ACCORDING TO THE INTERNATIONAL MONETA RY FUND (IMF), ON A PE R CAP ITA INCOME BASIS, INDIA RANKED 139TH BY GDP (NOMINA L) A ND 127TH BY GDP (PP P). FROM INDEP ENDENCE IN 1947 UNTIL 1991, SUCCESSIVE GOVERNMENTS FOLLOWED SOVIET STYLE PLA NNED E CONOMY AND P ROMOTED P ROTECTIONIST ECONOMIC POLICIES, WITH EXTENSIVE STA TE INTERVENTION AND ECONOMIC REGULATION. THIS IS CHARACTERISED AS DIRIGISM, IN THE FORM OF THE LICENSE RAJ. THE END OF THE COLD WAR A ND A N A CUTE BA LA NCE OF PAYMENTS CRISIS IN 1991 LED TO THE ADOPTION OF A BROAD ECONOMIC LIBERALISATION IN INDIA . SINCE THE START OF THE 21ST CENTURY, ANNUAL AVERAGE GDP GROWTH HAS BEEN 6% TO 7%.THE ECONOMY OF THE INDIAN SUBCONTINENT WAS THE LARGEST IN THE WORLD FOR MOST OF RECORDED HISTORY UP UNTIL THE ONSET OF COLONIALISM IN EARLY 19TH CE NTURY. INDIA ACCOUNT FOR 7.2 % OF GLOBA L ECONOMY IN 2022 IN PPP TERMS, AND AROUND 3.4% IN NOMINAL TE RMS IN 2022