Classification of economic activities into primary, secondary and tertiary is useful.
1. If all the economic activities are remained in only one sector, it would be difficult for the calculation of National Income, Per capita Income, etc. parameters.
2. Concentration on various economic activities for their growth will not be possible.
3. Allocation of funds, administration of sectors all becomes a tough task.
4. Classification of activities paves way for smooth functioning of the various calculations concerned.
