Industrial divisions

Indian Economy glossary

Also called: Eight industrial categories · Topic: Sectors of the Indian Economy · NCERT: Class 11, Ch 6 "Employment: Growth, Informalisation and Other Issues"

Meaning

Industrial divisions are the eight groups that official statistics use to classify all economic activity. They are then clubbed into the three broad sectors. Primary covers (i) agriculture and (ii) mining and quarrying. Secondary covers (iii) manufacturing, (iv) electricity, gas and water supply and (v) construction. Tertiary covers (vi) trade, (vii) transport and storage and (viii) services. This grouping lets planners measure where workers are and how each part of the economy is changing.

Example

A worker at a Jharkhand coal mine falls in division (ii), so in NCERT and PLFS tables they are counted in the primary sector. A mason on a building site falls in division (v), construction, which is secondary.

Don't confuse with

  • National Accounts (NAS) grouping: NCERT and the Periodic Labour Force Survey (PLFS) put mining in primary. NAS and Economic Survey GVA tables put mining under "Industry" and call the farm sector "agriculture, forestry and fishing".

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