Economic activities in a country/economy are broadly divided into:
Primary Sector: The economic activities which take place while exploiting the natural resources fall
under it, such as mining, agricultural activities, oil exploration, etc. When agriculture sector (one
of the sub-sectors of the primary sector) contribute minimum half of the national income and
livelihood in a country it is called an agrarian economy.
Secondary Sector: It contains all of the economic activities under which the raw materials extracted
out of the primary sector are processed (also called industrial sector). One of its sub-sectors,
manufacturing, has proved to be the largest employer across the western developed
Economies.When secondary sector brings in minimum half of the national income and
employment in a country it is called an industrial economy.
Tertiary Sector: All of the economic activities where services are produced falls in this sector, such
as education, healthcare, banking, communication, etc. When this sector contributes minimum
half of the national income and livelihood in a country it is called a service economy. Later on,
experts created two more sectors of economy—quaternary and quinary. Though, they are subsectors
of the tertiary sector.
Quaternary Sector: Known also as ‘knowledge’ sector, the activities related to education, research
and development, etc. come under it. The sector plays the most important role in defining the
quality of the human resources an economy has.
Quinary Sector: All activities where top decisions are made fall under it. The highest level of
decision makers in governments (inclusive of their bureaucracy) and the private corporate sector
fall under it. The number of people involved in this sector is very low rather they are considered
the ‘brain’ behind socio-economic performance of an economy.