The economic activities in the Indian economy are divided into the following three sectors:
(i) Primary sector: It is the dominant sector of the Indian economy. It consists of agriculture and allied activities such as animal husbandry, fishery, poultry, forestry and mining. These activities make substantial contribution to the national income and generate maximum employment. The significance of the primary sector has gradually declined with economic development.
(ii) Secondary sector: It consists of the manufacturing activities, construction, supply of water, electricity and gas. Importance of secondary sector gradually increases with economic development.
(iii) Service sector: It includes trade and commerce, transport and communication, education and health, banking and insurance, tourism and entertainment. It is the fastest-growing sector of the Indian economy. It has surpassed the contribution of the primary and the secondary sectors to the national income.