Introduction of Indian Economy

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Contents ≡
  1. Introduction
    1. What is Capitalist Economy?
    2. What is socialist Economy?
    3. What is Mixed Economy?
  2. Sectors in Indian Economy
    1. Primary Sector
    2. Seondary Sector
    3. Tertiary Sector

  • Economy - this term comes from the ancient greek word called Oikonomia.
  • 'Oikonomia' means management of household
Economy is the way a society, community or country uses and manages its resources to produce goods and services for people to use and consume. It involves the study of how people and groups use their resources, including land, labor, capital, and technology, to create and distribute goods and services. It also involves the study of how people and groups make decisions about buying, selling and producing goods and services, and how those decisions affect the overall economy and society.

What is capitalist economy?

In Capitalist economy, private persons or private organizations produces goods and services.
Eg: America, Canada, New Zealand, ...

What is socialist economy?

If only government produces goods and services then it is said to be Socialist economy.
Eg: Russia, China, and Cuba

What is Mixed economy?

If both private and the government produces the goods & services then is said to be MIxed economy.
Eg: India, Japan, ... 

According to Central Statics Office of India, there are 3 sectors in Indian Economy
  1. Primary Sector
  2. Secondary Sector
  3. Tertiary Sector

Primary Sector (Agricultural Sector)::

The primary sector  is composed of agriculture, forestry, fishing, mining, and quarrying. These industries are considered to be the backbone of the Indian economy as they are responsible for providing raw materials for other sectors of the economy.

Agriculture is the largest contributor to the primary sector in India, and it employs around 50% of the country's workforce. India is one of the world's largest producers of food grains, fruits, and vegetables, as well as cash crops such as cotton, sugarcane, and jute.

The forestry and fishing sectors are also important components of the primary sector in India. The country has a rich biodiversity and a wide variety of forest resources, which are used for a variety of purposes including timber, fuel, and medicine. India is also one of the major fishing nations in the world with a long coastline, major rivers, and a large number of fish in the seas.

Mining and quarrying is another important component of the primary sector in India, with a variety of minerals being mined including coal, iron ore, bauxite, limestone and many more.

Overall, the primary sector of the Indian economy plays a crucial role in providing the necessary raw materials and resources for other sectors of the economy to grow and develop.

Secondary sector (Industrial Sector) ::

The secondary sector refers to the industrial sector, which includes the manufacturing and construction industries. It involves the transformation of raw materials into finished goods and the construction of buildings and infrastructure. This sector plays a major role in the economic development of the country and is responsible for creating jobs and contributing to the country's GDP.

List of all activities that comes under Secondary sector are

  1. Construction activities
  2. Manufacturing
  3. Electricity, Cooking gas and Water supply
  4. Mines and Queries ( You may be wondered that Mines and Queries actually belongs to Primaty sector but why it is placed in Secondary sector. Right? The answer is Mining and Queries income is calculated in Secondary Sector)

Tertiary Sector (Service Sector)::

The tertiary sector of the Indian economy, also known as the service sector, includes activities that provide services to individuals and businesses. This sector includes a wide range of industries such as finance, healthcare, education, retail, transportation, and telecommunications. This sector has grown significantly in recent years, becoming an increasingly important contributor to the country's GDP and employment.

List of all activities that comes under Service sector are

  1. Banking
  2. Insurance
  3. Education
  4. Transportation
  5. Communication
  6. Stocks, Trade
  7. Health
  8. Personal Services
  9. Government /Public Services
  10. Hotels, Restaurants
  11. IT, Real-estates, Defence and other service related activities
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