Production sector

The production sector is responsible for the creation of products and services. This sector pays for household factoring services, government taxes, and material imports. The stages that raw materials go through to become a finished product are referred to as the manufacturing process. The product design and materials specifications from which the product is manufactured are the first steps in the manufacturing process. These materials are subsequently transformed into the needed part through manufacturing procedures.

The production sector is responsible for 22% of GDP and employs 22% of the overall workforce. According to the data of the World Bank, in 2015, India gained the sixth position in the Industrial manufacturing GDP output which value was $559 billion US dollars and the 9th largest in inflation-adjusted constant Which value was $197.1 billion US dollars.  

4 Major Sectors of an Economy

For the macroeconomic analysis, the four aggregate macroeconomic sectors that form the basic foundation are household, business, government, and foreign—which account for four gross domestic product expenditures. On the macroeconomic stage, these four sectors are the major ‘actors’.

Table of Content

  • What is Economic Sector ?
  • 1. Household Sector
  • 2. Production sector
  • 3. Government Sector
  • 4. The External Sector  

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What is Economic Sector ?

Consumption expenditures by the household sector, investment expenditures by the business sector, government purchases by the government sector, and net exports by the foreign sector are all examples of gross domestic product expenditures. Each sector also has a distinct function in macroeconomic activity: the home sector consumes, the business sector produces, the government sector regulates, and the foreign sector engages in external activity....

1. Household Sector

It plays a huge role in the Economic Development of any Country. The following are brief descriptions of some of the performances:...

2. Production sector

The production sector is responsible for the creation of products and services. This sector pays for household factoring services, government taxes, and material imports. The stages that raw materials go through to become a finished product are referred to as the manufacturing process. The product design and materials specifications from which the product is manufactured are the first steps in the manufacturing process. These materials are subsequently transformed into the needed part through manufacturing procedures....

3. Government Sector

The government sector is a segment of the economy that includes both government services and government-owned businesses. It is a welfare agency that is responsible for preserving law and order, defense, and other public welfare services....

4. The External Sector

All international economic interactions between inhabitants of the country (private and public sector) and the rest of the world are referred to as the external sector of a country’s economy. Export, import, international investment, external debt, current account, capital account, and balance of payment are all examples of economic operations that take place in foreign exchange. Few components of external sectors are discussed below:...