Secondary Activities

In this article, learn about the Secondary Activities involving the manufacturing of finished goods by processing the raw material produced from the primary sector.

Secondary Activities: Definition

It encompasses all industries that manufacture final goods from natural resources extracted in the primary sector. This sector includes industrial output, cotton fabric production, and sugar  production. Thus, this sector i.e secondary activities produces goods rather than raw materials. Due to the fact that this sector is related to a wide range of industries, it is sometimes referred to as the industrial sector. Blue-collar employees are those who engage in secondary activities. Examples of secondary activities include small potteries, handicraft manufacture, Factories that manufacture steel, chemicals, plastic, and automobiles, Textile mills, Food producing facilities such as breweries and food processing industries. 

What are the Core Industries of Secondary Activities?

Electricity, steel, refinery products, crude oil, coal, cement, natural gas, and fertilisers are the eight core industries of secondary activities. The Index of Eight Core Industries is a monthly production index that serves as a leading indicator of industrial performance on a monthly basis. The Index of Eight Core Industries is generated monthly using data from the Source Agencies.

Advantages of Secondary Activities Sector

Secondary industries have the following benefits:

  • Diversifies the economy by removing it from reliance on core products
  • Manufacturing allows higher real salaries than agriculture due to its higher value-added
  • Allows countries to concentrate and gain from scale economies
  • Secondary industries have aided in the provision of employment opportunities
  • It employs the second largest number of people after agriculture
  • Indeed, the finished commodities in our homes result from this industry’s design and processing procedures
  • These goods have contributed to the improvement of our lives
  • Secondary industries have aided in a country’s development and prosperity
  • Individuals who have a lot of money are more likely to pay more
  • The state invests this much in the welfare of its citizens
  • Mechanisation results from businesses, which has resulted in decreased purchases and increased international commerce
  • This results in increased salaries through forex, which enriches the economy
  • Assists nations in capitalising on and specialising in efficiency gains

Significance of Secondary Activities

The Secondary Sector Contributes the Following to the Indian Economy:

(i) The secondary sector accounts for 20% of India’s overall GDP.

(ii) Individuals find employment.

(iii) It gives its consumers clothing, rice, copper, and metal.

(iv) The secondary sector of the economy helps the primary sector grow. Manufacturing industry development entails advancement, as measured by increases in gross domestic product and economic production. Since industrial development has resulted in significant progress, it has increased residents’ living standards and academic performance, as well as communication, amenities, transportation infrastructure, and factories; architecture has also improved significantly as a result of modernisation and has made a significant contribution to today’s modern economic transactions.

Contribution of Secondary Activities

The secondary activities’ contribution to the Indian economy is extensive, encompassing all major economies that generate entirely usable materials and rely on primary sector raw resources. This industry encompasses extraction, production, and construction. The secondary industry contributes more than 10% to India’s gross domestic product. These are only a few examples of the secondary sector’s prominence and contribution to the Indian economy.

Drawbacks of Secondary Activities’ Industry

  1. The major disadvantage of secondary businesses is that they have increased pollution to previously unimaginable levels. The hazardous gases emitted have had a significant role in climate change throughout time.
  2. Our waterways are becoming increasingly contaminated as a result of waste. This is the primary distinction we make between primary and secondary industries, as primary sectors are more environmentally beneficial.
  3. The secondary part of the economy often attracts workers due to job opportunities and greater pay. Employees’ origins have shifted from agriculture to manufacturing districts, which can be challenging due to a lack of housing and services and a range of medical difficulties.
  4. Metal processing and casting, automobile manufacturing, textile development, chemical and technical services, aeroplane assembly, power services, architecture, breweries and distributors, and shipping are secondary sector industries.
  5. The primary sector is defined as the region in which goods and activities are produced through the extraction of natural resources. The secondary sector of the economy is the sector that converts raw materials into finished goods through the use of a more useful production line. This is the major way we distinguish between the primary and secondary sectors.


Secondary Activities involve the manufacturing of finished goods by processing the raw material produced from the primary sector. Thus, the sector of a nation’s economy produces goods rather than raw materials. Due to the fact that this sector is related to a wide range of industries, it is sometimes referred to as the industrial sector.