Reema works as a shift technician in Mehta Textiles Ltd. whereas Shirin works as a sales executive in Kashvi Fashion Showroom. Identify the sectors of the economy in which Reema and Shirin are working. Evaluate the role of each of these sectors in the Indian Economy.

Reema works in the Secondary or Manufacturing Sector.

The role of the secondary sector is as follows –

1. The secondary sector covers activities in which natural products undergo changes through ways of manufacturing to take different shape and forms.

2. Here the product is not produced by nature but has to be made and therefore requires a certain level of manufacturing. For example – using cotton fiber from the plant, the yarn is spun and cloth is woven.

Associated with different types of industries, it is also known as the industrial sector.

Shirin works in the Tertiary Sector.

3. The tertiary sector covers activities that help in the development of the primary and secondary sectors. These activities do not produce goods but are an aid/support for the production process. For example – transport services, storage, communication, banking etc.

4. Since the activities taking place in the tertiary sector generate services rather than goods, the tertiary sector is also called the service sector.

5. Sectors of an economy are the foundations underlying the smooth functioning of the various processes and activities required to sustain life and the economic system in a country. Every sector has a set of defined goals and objectives in this economic system and they tend to work closely, being interdependent of each other.

NOTE – Sectors of economic activities –

1. Primary sector – it carries out activities to produce goods by exploiting natural resources. For example – agricultural activities.

2. Secondary sector – it carries out activities to change natural products into different forms through manufacturing techniques taking place in industries.

3. Tertiary sector – it carries out activities which support the above two sectors i.e. the primary and secondary sectors. For example – banking, transport, communication etc.