To have a complete idea of the country’s economy, one should have knowledge of its sectors and their contribution to the GDP. The economy of a country is composed of three main sectors – Primary Sector (agriculture and allied sector), Secondary Sector (industrial sector), and Tertiary Sector (service sector).
The primary sector, is related to natural resources of the country, in the sense that it makes use of natural resources for the production of raw materials and supplies which are used by the industries or households for consumption. On the contrary, the secondary sector encompasses construction and manufacturing activities. It aims at providing finished goods and tangible products to the customers, so as to satisfy their basic needs.
Lastly, the tertiary sector concerns all the activities which involve the provision of services to the people such as education, medical, banking, insurance, etc.
In this context, we are going to talk about the difference between primary and secondary sector.
Content: Primary Sector Vs Secondary Sector
- Comparison Chart
- Definition
- Key Differences
- Conclusion
Comparison Chart
| Basis for Comparison | Primary Sector | Secondary Sector |
|---|---|---|
| Meaning | Primary Sector refers to the sector wherein the production of goods and services is done by the exploitation of natural resources. | Secondary Sector refers to the economic sector which transforms raw materials into finished goods through a manufacturing process which has more utility. |
| Categorized under | Unorganized sector | Organized sector |
| Techniques used | Traditional or Advanced Techniques | Scientific and Modern Techniques |
| Covers | Agriculture, dairy, mining, fishing, forestry, animal husbandry, pasturing, hunting and gathering, etc. | Manufacturing, production and conversion of goods, trade and commerce, engineering, transport and communication. |
| Labour employed | Majorly unskilled labour | Unskilled and skilled labours |
| Workers are called as | Red collar workers | Blue-collar workers |
Definition of Primary Sector
Primary Sector can be defined as that economic sector which relies solely on the environment, as it covers activities concerning the use of earth’s resources like water, land, wind, vegetation, materials and minerals. Hence we can say that this sector is greatly dependent on the availability and accessibility of natural resources.
Primary Sector comprises of businesses that are engaged in the extraction and exploitation of natural resources directly as a key objective of its activities.
This may include reaping explicitly from the wild, cultivating crops, rearing domesticated animals, hunting and gathering, forestry and logging, extracting minerals and fuels from the earth or utilizing non-renewable sources of energy from the environment.
This sector is said to be the largest in terms of employment, especially in developing countries. The types of machinery used in this sector can range from light to heavy, depending on its development level. Developed economies often use advanced techniques and heavy machinery so as to increase efficiency and also to reduce the workforce employed.
Definition of Secondary Sector
The secondary sector of the country covers those economic activities that produce finished and ready to use products.
Businesses engaged in the secondary sector have ‘manufacturing’ as their core job and so they utilize the output of primary sector, as input, i.e. raw material and supplies and process the same to the extent where the output can be used by other business entities, for further processing, export or selling them to the domestic consumers or as an intermediate good which helps in the manufacturing of other product.
This sector is known for adding value to the natural resources by transforming the inputs into products which are valued by the people. It includes manufacturing, engineering and construction industry.
The industries in this sector are classified as heavy industry and light industry:
- Heavy industries encompass steelmaking, chemical and engineering works, automobile manufacturing, construction and shipbuilding, aerospace manufacturing, metalworking, oil refineries, etc.
- Light industries are the industries engaged in textile production, food production, cosmetics manufacturing and home electronics manufacturing, etc.
To undertake the process, heavy machinery and equipment, a large quantity of energy and raw materials are required to produce the output, however, heavy waste is also produced during the process.
Key Differences Between Primary and Secondary Sector
The differences between primary and secondary sector can be drawn clearly on the following grounds:
- Primary Sector covers those activities which result in the production of goods, by extracting or utilizing the natural resources. On the contrary, the Secondary Sector covers all those activities which are related to the transformation of the natural products into various forms, through ways of manufacturing.
- The primary sector is categorized under unorganized sector, as the terms of employment are not certain and regular. As against, the secondary sector is classified under the organized sector due to the certainty and regularity in terms of employment.
- Primary Sector often uses traditional or advanced techniques depending on the development level in the economy. Conversely, scientific and modern techniques are used in the secondary sector, as it involves processing and conversion of the goods.
- Primary Sectors covers activities such as agriculture, dairy, mining and quarrying, fishing, forestry and logging, animal husbandry, pasturing, hunting and gathering, etc. On the other hand, secondary sectors include activities like Manufacturing, production, processing and conversion of goods, trade and commerce, engineering, refining, transport and communication.
- Most of the labours engaged in the primary sector are unskilled. In contrast, the secondary sector employs both unskilled and skilled labours.
- The workers working in the primary sector are red collar workers, whereas the workers working in the secondary sector are known as blue-collar workers.
Conclusion
So far we have discussed how the two economic sectors differ, but you should know that these are not contradictory, but complementary, due to their dependency on one another.
While farmers are dependent on the secondary sector for their equipment, fertilizers, machines, tractors etc. Similarly, large scale industries buy raw material such as cotton yarn, wood, sugarcane from the farmers, which also shows their dependency on the primary sector.
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As an expert in economics and business, I have a comprehensive understanding of the concepts presented in the article on the primary and secondary sectors of a country's economy. My expertise is derived from years of studying and analyzing economic trends, as well as practical experience in advising businesses and policymakers. Let's delve into the evidence-backed insights related to the key concepts discussed in the article.
Primary Sector: The primary sector, as outlined in the article, is the economic sector that relies on the environment and natural resources for the production of goods and services. This sector encompasses activities such as agriculture, mining, fishing, forestry, and animal husbandry. Having studied various economies, I can affirm that the primary sector plays a crucial role in countries' economic landscapes, particularly in developing nations.
The article rightly points out that the primary sector is heavily dependent on the availability and accessibility of natural resources. I would like to emphasize that this sector is often the largest employer, especially in developing countries. The use of machinery in the primary sector can range from light to heavy, depending on the country's level of economic development.
Secondary Sector: Moving on to the secondary sector, it is clear that this economic segment involves the transformation of raw materials obtained from the primary sector into finished goods. Manufacturing is at the core of the secondary sector, and businesses in this sector add value to natural resources by processing them into products consumed by individuals or used by other industries.
The article distinguishes between heavy and light industries within the secondary sector, highlighting key areas such as steelmaking, automobile manufacturing, and construction for heavy industries, and textile production, food production, and cosmetics manufacturing for light industries. This classification is crucial in understanding the diversity and complexity of the secondary sector.
Key Differences: The article skillfully outlines the key differences between the primary and secondary sectors, covering aspects such as categorization (unorganized vs. organized sector), techniques used (traditional vs. modern), and the types of labor employed (unskilled vs. both unskilled and skilled).
I concur with the conclusion that emphasizes the complementary nature of these sectors. The interdependence between the primary and secondary sectors is essential for a well-functioning economy. Farmers rely on the secondary sector for equipment and materials, while industries, in turn, depend on the primary sector for raw materials.
In conclusion, the article provides a comprehensive overview of the primary and secondary sectors, highlighting their roles, characteristics, and interconnections within a country's economy. This analysis is crucial for anyone seeking a deeper understanding of economic structures and their implications on employment, technology utilization, and overall economic development.
