Jump of Indian Economy from Primary to Tertiary

Jump of Indian Economy from Primary to Tertiary

( GS PAPER-3,  Sectors of Economy

Source- pib)


Indian economy is divided into three sectors i:e; primary sector that deals with agriculture related aspects, secondary sector that deals with manufacturing related angle and the tertiary sector that is concerned with service sector.

Reasons of jumping from primary sector to tertiary sector:

  • India had a strong and bitter colonial experience and a taste of capitalism’s exploitative nature. British colonized India to serve as a source of raw material for its fast developing industries
  • Indian manufacturing sector and crafts industry broke down due to competition from cheap European products and exploitative policies of British, forcing people to move from industries to land-based activities.
  • The services like law, health, civil services , banking etc grew lucrative and were widely respected as they provided employment and status in colonial India.
  • The socio-capital economy was plagued by restrictions and red-tapism widely known as “license raj” and hence never gave the required impetus to the industrial sector despite it being planning commissions priority.

Importance of secondary sector:

  • Helps in production of commodity required for consumption
  • Improve employment ratio in the country
  • Helps in developing purchasing power capacity
  • Increases the GDP of the country

Government efforts to boost secondary sector:

  • Schemes like Production Linked Incentive is helping the government to boost secondary sector
  • Promoting 100% FDI in selected category has improved capital inflow that leads to the development of manufacturing sector
  • Government has set up Mega Food Parks recently to boost primary as well as secondary sector

Way Forward:

All the sectors of the economy have equal weightage and need equal attention. But due to past experiences the government preferred to promote the service sector instead of the secondary sector. But now schemes like Atma Nirbhar bharat Yojna and Vocal for local campaigns have boosted the manufacturing sector

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