The primary sector is the group of economic activities in which people depend directly on nature to produce goods. Page 196 defines it as “the group of activities that involves extraction of raw materials directly from nature such as farming, fishing, forestry, etc.”, and the text adds that in these activities “people are directly dependent on nature to produce goods”.
Secondary = change its form into a new product
How the two sectors differ:
| Basis of difference | Primary sector | Secondary sector |
|---|---|---|
| 1. Source of material | Nature itself — soil, water, forest, mine, livestock | The output of the primary sector |
| 2. What happens to the material | It is grown, caught, reared or extracted. Its form is not changed | Its form is changed — processed, manufactured or assembled into a new product |
| 3. Nature of output | Raw material — wheat, milk, fish, cotton, timber, iron ore | Finished or semi-finished goods — flour, ghee, cloth, furniture, steel; also buildings, roads and utilities |
| 4. Where the work is done | Fields, forests, mines, rivers, seas, farms | Mills, factories, workshops, production units, construction sites |
| 5. Dependence | Depends on nature — on rain, soil, season and the stock of fish or minerals | Depends on the primary sector for its raw material, and on machines and power |
| 6. Value | The output is worth comparatively little as it stands | Value is added — the product sells for more than the raw material cost |
Two examples of each, as a pair, so the difference is visible:
- Growing cotton in the black soil of Vidarbha or Gujarat is a primary activity — the farmer takes the fibre from the plant. Spinning that cotton into yarn and weaving it into cloth in a mill at Coimbatore is a secondary activity — the cotton has become a different thing.
- Mining iron ore at Bailadila in Chhattisgarh is a primary activity — the ore is dug out of the earth. Making steel from that ore at the Bhilai plant, and then cars from the steel, is a secondary activity.