Primary sector and Private Sector of the economy

Production lifecycleThe primary sector of the economy is the sector of an economy making direct use

of natural resources. This includes agriculture, forestry, fishing and mining. In contrast, the secondary sectorproduces manufactured goods, and the tertiary sector produces services. The primary sector is usually most important in less-developed countries, and typically less important in industrial countries.

The manufacturing industries that aggregate, pack, package, purify or process the raw materials close to the primary producers are normally considered part of this sector, especially if the raw material is unsuitable for sale or difficult to transport long distances.[1]

Primary industry is a larger sector in developing countries; for instance, animal husbandry is more common in Africa than in Japan.[2] Mining in 19th-century South Wales provides a case study of how an economy can come to rely on one form of activity.[3]

Canada is unusual among developed countries in the importance of its primary sector, with thelogging and oil industries being two of Canada's most important. However, in recent years, the number of terminal exchanges have heavily reduced Canada's primary industry, making Canadians rely more on quaternary industry.

AgricultureIn developed countries primary industry has become more technologically advanced, for

instance the mechanization of farming as opposed to hand picking and planting. [4] In more developed economies additional capital is invested in primary means of production. As an example, in the United States corn belt, combine harvesters pick the corn, and spray systems distribute large amounts of insecticides, herbicides and fungicides, producing a higher yield than is possible using less capital-intensive techniques. These technological advances and investment allow the primary sector to require less workforce and, this way, developed countries tend to have a smaller percentage of their workforce involved in primary activities, instead having a higher percentage involved in the secondary and tertiary sectors. 

Developed countries are allowed to maintain and develop their primary industries even further due to the excess wealth. For instance, European Union agricultural subsidies provide buffers for the fluctuating inflation rates and prices of agricultural produce. This allows developed countries to be able to export their agricultural products at extraordinarily low prices. This makes them extremely competitive against those of poor or underdeveloped countries that maintain free market policies and low or non-existent tariffs to counter them. 

List of countries by agricultural outputLargest countries by agricultural output according to IMF and CIA World FactbookEconomy Countries by agricultural output in 2015 (billions in(01)   China 1,088(02)   India 413(—)   European Union 333(03)   United States 290(04)   Indonesia 127(05)   Brazil 110(06)   Nigeria 106(07)   Pakistan 63

Quaternary sector of the economy

Economic sectors

Three-sector theoryPrimary sector: raw materialsSecondary sector: manufacturingTertiary sector: services

Additional sectorsQuaternary sector: information servicesQuinary sector: human services

TheoristsAGB Fisher · Colin Clark · Jean Fourastié

Sectors by ownershipBusiness sector · Private sector ·Public sector · Voluntary sector

The quaternary sector of the economy is a way to describe a knowledge-based[1] part of the economy - which typically includes services such as information technology, information-generation and -sharing, media, and research and development, as well as knowledge-based services like consultation, education, financial planning, blogging, and designing.[2]

The quaternary sector is based on knowledge and skill. It consists of intellectual industries providing information services, such as computing and ICT (information and communication technologies),consultancy (offering advice to businesses) and R&D (research, particularly in scientific fields). According to some definitions, the quaternary sector includes other pure services, such as theentertainment industry, and the term has been used[by whom?] to describe media, culture, andgovernment.

Colin Clark's sector model of an economy undergoing technological change. In later stages, the quaternary sector of the economy grows – shown in red."Quaternary sector" is a further delineation of the three-sector hypothesis of industry in the sense that the quaternary sector refers to a part of the third or tertiary sector along with the quinary economic sector. It has been argued that intellectual services is distinct enough to warrant a separate sector and not be considered merely as a part of the tertiary sector. This sector evolves in well-developed countries and requires a highly educated workforce.[3]

Between them, the tertiary and quaternary sectors form the largest part of the UK economy, employing 76% of the workforce. The number of people who earn their living in these activities is increasing, as they make human life easier and more comfortable. Companies invest in the quaternary sector to promote further expansion. It is seenas a way to generate higher margins or returns on investment. Research will be directed into cutting costs, tapping into markets, producing innovative ideas, new production methods and methods of manufacture, amongst others. To many industries, such as the pharmaceutical industry, the sector is the most valuable because it creates future secondary-sector branded products from which companies may profit.

Private Sector of Indian EconomyThe private sector of Indian economy is the past few years have delineated significant

development in terms of investment and in terms of its share in the gross domestic product. The key areas in private sector of Indian economy that have surpassed the public sector are transport, financial services etc.

Indian government has considered plans to take concrete steps to bring affect poverty alleviation through the creation of more job opportunities in the private sector of Indian economy, increase in the number of financial institutions in the private sector, to provide loans for purchase of houses, equipments, education, and for infrastructural development also. The private sector of Indian economy is recently showing its inclination to serve the society through women empowerment programs, aiding the people affected by natural calamities, extending help to the street children and so on. The government of India is being assisted by a number of agencies to identify the areas that are blocking the entry of the private sector of Indian economy in the arena of infrastructural development, like regulatory policies, legal procedures etc.

The most interesting fact about the private sector of India economy is that though the overall pace of its development is comparatively slower than the public sector, still the investment of private sector in the recent past, i.e. in the first quarter of 1990 registered approximately 56 % which rose to nearly 71 % in the next quarter, accounting for an increase of 15 %. Certain steps taken by the Indian government are acting as the stepping stone of the private sector continued journey to success, include industrial delicensing, devaluation that was implemented previously. 

The private sector of Indian economy is also adversely affected by the huge number of permits and enormous time required for the processing of documents to initiate a firm, however the central government has decided to abolish MRTP Act and incorporate a Competition Commission of India to bring the public sector and the private sector at the same platform. 

The participation of the private sector of Indian economy is desired by the government of India for infrastructural development including specific sectors like power, development of highways and so on. As the contribution of public sector in these sectors have been arrested due to the shift of the attention of the Indian government to issues like population increase, industrial growth.

The main reasons behind the low contribution of the private sector in infrastructural development activities are that:

The small and medium scale companies in the private sector of Indian economy suffer from lack of finances to welcome the idea of extending their business to other states or diversify their product range. 

The private sector of Indian economy also suffer from the absence of appropriate regulatory structure, to guide the private sector and this speaks for its unorganized framework.

The unorganized framework of the private sector is interrupting the proper management of this sector resulting in the slowdown of its development.