On the basis of nature of activities, economic sectors are classified into :
(i) Primary sector : It forms the base for all other products that we subsequently make. Since most of the natural products we get, are from agriculture, dairy, fishing, forestry, this sector is also called sector for agriculture and related activities (stone quarrying, animal husbandry, etc.)
(ii) Secondary sector : It covers activities in which natural products are changed into other forms through various ways of manufacturing. It can take place in a factory, workshop or at home.
Some examples are :
(a) Spinning yarn from cotton fibre from plants.
(b) Making sugar from sugarcane.
It is also called the Industrial sector.
(iii) Tertiary sector: Activities in this sector do not produce any goods. This sector produces services that act as aid and support to the primary and secondary sectors. Services like administration, police, army, transport, hospitals, educational institutions, post and telegraph, courts, municipal corporation, insurance companies, storage, trade communication and banking are some of the examples of activities of the tertiary sector. This sector is also known as service sector.