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CA Foundation · Business Economics · Indian Economy

Which of the following best describes the 'secondary sector' in the classification of India's economic activities?

The secondary sector consists of activities that convert raw materials into finished or processed goods, including manufacturing and construction. Primary activities extract natural resources, and tertiary activities provide services; the classification depends on the nature of activity, not on who owns the enterprise.

  1. AActivities that transform raw materials into finished goods, such as manufacturing and constructionCorrect
  2. BActivities that extract natural resources, such as mining and farming
  3. CActivities that provide services such as banking and transport
  4. DActivities carried out solely by government departments

Explanation

The secondary (industrial) sector covers manufacturing, construction, electricity, gas and water supply, which process raw materials into goods. Farming and mining belong to the primary sector, and banking and transport belong to the tertiary sector. Ownership by government is not the basis of classification.

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