The economy is typically divided into three major sectors: primary , secondary , and tertiary sectors.
- The Primary sector is concerned with the extraction and harvesting of natural resources , such as agriculture, mining, fishing, and forestry. Production of a commodity in its raw form (such as crops, minerals, and natural resources) falls under this sector. For example, cotton (used to make textiles) is grown in agriculture, which is part of the primary sector.
- The Secondary sector involves the processing and manufacturing of raw materials into finished products. For example, turning raw cotton into fabric or clothing happens in the secondary sector.
- The Tertiary sector refers to the service industry , such as retail, finance, healthcare, education, and tourism. It does not directly involve the production of goods, but provides services that support the primary and secondary sectors.
- The Information Technology (IT) sector is part of the Tertiary sector , focusing specifically on services related to computing and information technology.
Thus, the production of a commodity in its raw or primary form is primarily associated with the Primary sector .