question_answer

  How are the three sectors of economy interdependent? Explain with five suitable examples.                      Or "Economic activities, though grouped into three different categories, are highly interdependent." Discuss.

Answer:

                  There are three sectors of economy feasibly found i.e., Primary sector. Secondary sector and Tertiary sector. All the three sectors are interdependent. Some examples are given to elucidate this fact. ·         Agricultural activities produce raw materials for agro based industries and food for employees in Secondary and Tertiary sector. It shows Industrial sector and Service sector's dependency on Primary sector. ·         Industrial activities produce instruments like tractor, fertiliser for agricultural inputs and increase production and productivity in agriculture. Here Primary sector depend on Secondary sector. ·         Transportation   facilities   are   much   required   for transportation of agricultural products and industrial products to market centres and urban centers. Here Primary and Secondary sector depends on Tertiary sector. ·         Industrial sector produce trucks, auto, etc for transportation, computer assets for proper banking activities and knowledge outsourcing. So, it shows now Tertiary sector depends on Secondary sector. ·         If farmer does not produce grain, all people will starve and employees in Secondary and Tertiary sectors will pay much for food items and their life will be scarce. ·         Mercerization, storage and transportation inadequacy will put obstacle for farmers to link with their consumer and its earning will be reduced and life will be miserable. ·         So, it is reflected that all the sectors of economy are highly interdependent in India and also elsewhere in the world.