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Secondary Sector

Last updated date: 23rd Apr 2024
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What is a Secondary Industry?

To define “what is the secondary sector?”, the development of industrial areas are commonly called secondary sectors and are also sometimes referred to as the production sector some of the time. This sector encompasses intermediate products, agricultural production, textiles, and many more products.

So, what is a secondary industry? The secondary sector is also called the manufacturing industry. The main function of it is that it readies the resources or the materials that are raw and which are provided by the primary sector for use in goods and services. Items that have already been grouped into market segmentation based on specialised industries are further procedures. Want to gain more clarity on the question “what is secondary industry?” Read on!

Heavy or large scale industry requires a substantial sum of financial capital in infrastructure, provides a big and diverse market like some other manufacturing industries, has a technologically advanced organisation and sometimes a maximum level staff, and generates a large amount of output.

Instances include the steel and iron production infrastructure, in addition to the raw oil sector.

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Small Industry

It is distinguished by manufactured items, ad cheap lending rates for heavy machinery, which may contain slightly altered products like personalised or graphic work.

Secondary sector examples include the plastics sector and textiles sectors. The food manufacturing and oil refining businesses can also be considered to be secondary sector examples.

Secondary Industry Definition

  • The production process is in charge of collecting raw resources and converting those to products that may be purchased by people in the mass market.

  • It encompasses a wide range of sectors relating to building or producing usable and finished goods. The secondary sector focuses on the production of the primary industry with the aim of marketing and trade.

  • Production facilities, companies, To effectively convert raw components into edible items, machinery and fuel are necessary.

  • There is high importance of the secondary sector. This sector generates surplus energy & leftover as a byproduct of the method of production. It wreaks havoc mostly on the atmosphere at a period when there is pollution at an all-time high. This sector is typically seen as a connecting factor between the other sectors that are primary and tertiary sectors.

  • Production through sectors has contributed a lot to a nation's employment creation. Countries that really can effectively sell industrial goods are indeed much more likely to have a higher net Gross domestic product.

  • That, in return, promotes higher taxation and good wages, which are essential in an institutional model to improve projects as well as services.

  • Secondary sector economies thrive in industrialised nations because they provide an order to improve the power of economically solid opportunities. It increases community flexibility as well as promotes ongoing and prospective success.

  • Currently, the secondary firm includes an approximated 20percent of the working population in the U. S.

Secondary Industry Examples

The secondary sector is commonly referred to as the second or mid-phase that follows the primary sector, which commenced using building ingredients first from the ground and therefore will end in the consumers’ hands with the help of final products manufactured by secondary companies.

Here are a few remarkable completed goods examples that come from the secondary sector.

  • The primary industry contributes to the economic development of cotton, which would then be delivered to the secondary sector of the economy, which transforms it into attractive clothing after a number of critical stages.

  • Wheat and rice grown as a result of agricultural activities are transformed into baked goods, milk from cows is converted into cream cheese, custard, and butter, manufacturers transform crude steel into tubing, scrap iron into automobiles, merino into woollen clothing and shoes, timber from tree branches are used to make excellent tables and chairs for our schools and workplaces, and veggies are converted into recipes and compote.

The Following are the Secondary Sector's Contributions to the Indian Economy:

(i) The secondary sector is responsible for 20% of the total Gross domestic product in India.

(ii) Individuals are employed.

(iii) It provides items such as apparel, rice, copper, and metal to its customers..

(iv) The Secondary sector of the economy contributes to the expansion of the other sectors.

  • Development in the manufacturing industry entails progress, as assessed by gains in the gross domestic product and economic output.

  • Development of industry since it resulted in considerable progress creates work opportunities that increase residents' living standards as well as academic performance, transportation infrastructure, communication, amenities, and factories; architecture has also improved primarily as a result of modernization and has made a substantial commitment to today's modern economic transactions.

These are some of the importance of the secondary sector and the contribution of the secondary sector in the Indian economy.

Benefits of Secondary Industries

The following are the benefits of secondary industries:

  • Secondary industries have contributed to the creation of job possibilities. After farming, it employs the greatest number of people.

  • The final goods in our houses are indeed the outcome of such an industry's design and processing processes. These items have aided to make our life better.

  • Secondary industries have contributed to a country's progress and wealth. People are likely to pay extra money if they have plenty. The state spends this much on the well-being of its population.

  • Mechanisation is the consequence of businesses, which has led to reduced purchases and an expansion of international trade. This promotes larger salaries through forex, making the economy increasingly rich.

  • Aids nations in benefiting and specialising from efficiencies.

These are some of the benefits and importance of the secondary sector.

Secondary Industry Drawbacks

  • The most serious drawback of secondary industries is that they have elevated pollution to unthinkable levels. The harmful gas released over time has been a major contributor to climate change.

  • Our waterways are becoming polluted by garbage. This is how we primarily distinguish between primary sector and secondary sector as primary sectors are more eco friendly.

  • The secondary sector of the economy typically finds employees due to employment options and higher compensation. Employees' foundation has changed from agricultural to industrial regions, which can prove to be difficult, including a scarcity of accommodation, facilities, and a variety of medical issues.

  • Metal processing and casting, vehicle manufacture, textile development, chemical and technical and management, aircraft assembly, power services, architecture, breweries and distributors, architecture, and shipping are all sectors linked with the secondary sector.

  • The primary sector is defined as the area in which commodities and activities are produced via resource extraction. The secondary sector is the sector of the economy that converts resources into completed commodities with the help of a production line that would be more useful. This is how we primarily distinguish between the primary sector and secondary sector.


The contribution of the secondary sector in the Indian economy encompasses all major economies which produce a completely useful material and so rely on raw materials from the primary sector. Extraction, production, and building are all part of this industry. The secondary sector accounts for more than 10 per cent of India’s GDP.

Importance of Secondary Sector and Its Features

  • Labour and resources are both required.

  • Small businesses are concentrated in cities, while steel mills are concentrated beyond the cities.

  • Its survival depends on the basic industry.

Fun Facts

Businesses in the secondary sector create a polished, effective material and are specialised in reconstruction. In definition, this industry uses the results of the primary sector and makes finished commodities. The industry is an energy-intensive industry that includes all tools and infrastructure utilised in the production, manufacturing, or assembly of commodities. These are the characteristics of the secondary sector.

FAQs on Secondary Sector

1. What is the role of secondary industries in adding value to the goods?

As per the characteristics of the secondary sector, it tries to improve profitability by adding value. Increasing the size of the secondary sector benefits the industry by greatly increasing the cost. When compared to iron, the ore is far less expensive than it and has been extracted from the bedrock and transformed into a steel beam. Finished goods are far more valuable than raw resources.

2. What is the importance of the term secondary sector?

Because the secondary sector is largely related to enterprises, it is often called the industrial sector. The second industry contributes functional and completed commodities, the majority of which have been manufactured in the industry. This is one of the most prevalent characteristics of the secondary sector.