Correct Option
The correct option is 2 and 3 only.
Explanation
Economic activities are broadly classified into three sectors based on the nature of value addition: Primary, Secondary, and Tertiary. The Secondary Sector is defined by the transformation of raw materials into finished products, distinguishing it from extraction (Primary) and services (Tertiary).
Statement-wise Analysis
- Statement 1 is Incorrect. The Primary Sector constitutes the first stage of economic activity, involving the direct extraction or utilization of natural resources (e.g., agriculture, mining, fishing). The Secondary Sector represents the subsequent stage where these raw materials are processed.
- Statement 2 is Correct. The Secondary Sector is directly associated with industrial activity. It encompasses manufacturing, construction, electricity, gas, and water supply, all of which involve adding value to natural resources through mechanical or chemical processes.
- Statement 3 is Correct. In the context of the Indian economy, the Primary Sector (Agriculture and allied activities) remains the largest employer, engaging approximately 45-46% of the workforce. The Secondary Sector employs a significant share (approximately 24-25%) but remains smaller than the Primary Sector in terms of employment generation.
Key Takeaway
The Secondary Sector is characterized by manufacturing and industrial processing. While it is a vital engine of economic growth, the Primary Sector continues to employ the largest proportion of the workforce in India.