• Primary sector of the economy: Involves the extraction and production of raw materials • Secondary sector of the economy: Involves the transformation of raw or intermediate materials into goods e.g. manufacturing steel into cars, or textiles into clothing. • Tertiary sector of the economy: Involves the provision of services to consumers and businesses, such as baby-sitting, cinema and banking. Tertiary Sector Of Indian Economy decreasing trend of employment in primary sector and an increasing trend of employment in tertiary Major Reasons Of Growth • availability of vast skilled labor • dividend emanating from a higher proportion of younger population • demand for many professional and consumer services • Service-input intensive method of organizing production Cont….. • growth in the final demand for services. • Service activity can also be stimulated by technological advances (IT Sector) • Liberalization • Role of Foreign Demand Conclusion • There has been a structural change in the Indian economy since Independence. This is reflected in the change in the sector-wise composition of income and workforce over the years. • Most of the growth in services has been in information technology (IT), business process outsourcing (BPO) services and knowledge based activities; other sectors like telecommunications, financial services, community services and hotels and restaurants