Industry is a process by which raw materials are changed into finished products. Many raw materials are not fit for human consumption, so they need conversion. This transformation of commodities from one form to another is the essence of manufacturing industry, the secondary group of economic activities. The economic strength of a country is always measured by the development of its manufacturing industries.
1. Economic Activity
Any action that involves production, distribution, consumption or services is an economic activity. The arrival of science and technology helped man to fabricate raw materials into finished products, and every country depends on the effective growth of industries for its economic development.
The fundamental and major economic activities are primary, secondary and tertiary. The tertiary group is further extended into quaternary and quinary activities.
2. Classification of Economic Activities
| Activity | Meaning | Example given |
|---|---|---|
| Primary | Activities that originated at the very beginning – forestry, grazing, hunting, food gathering, fishing, agriculture, mining and quarrying | Raw cotton production |
| Secondary | Change raw materials into usable products through processing and manufacturing | Spinning mill; bakeries making flour into bread; factories changing metals and plastics into vehicles |
| Tertiary | Provide essential services and support industries to function – often called service industries | Trade, transport; a school |
| Quaternary | Creation and transfer of information, including research and training – often called information industries | Banking sector; television programmes telecast from TV stations |
| Quinary | High level decision making by executives in industries, business, education and government | Judicial sector; council of ministers deciding welfare schemes |