Stages in Production

There are three stages in production.

   

       1)      Primary stage of production

       2)      Secondary stage of production

       3)      Tertiary stage of production

1) Primary stage of production: This is the first stage of production in this stage raw material are extracted (collected) from the nature.

Example: Agriculture, Fishing, Forestry, Mining, Quarrying (open pit mine from which rock or minerals are extracted).

2) Secondary Stage of Production: This is second stage of production. Here we change raw material into finished goods or semi-finished (not fully completed) goods.

Example: Manufacturing, Construction etc.

3) Tertiary Stage of Production: This is the stage which provides services to other two stages without this sector primary and secondary sector cannot survive. 

Example: Transport, Communication, Banking, Insurance, Post office etc.