Potential of the Tertiary Sector

In the last few decades, it has been observed that many economies shifted their focus from the manufacturing sector to the tertiary sector, thus escalating their economic growth.

  • Advanced technology and innovation played a major role in the upliftment of the tertiary sector in the Indian economy and which also resulted in increased labor productivity.
  • The tertiary sector is responsible for the movement of all kinds of goods and services.
  • Growth in the tertiary sector uplifts the living standards of the people and allows them to spend on their comfort and leisure.
  • The increase in labor productivity results in higher wages thus increasing their purchasing capacity and benefiting other tertiary sector industries.
  • Development needs money and thus the need for the tertiary sector is increasing as it includes all the financial institutions such as banks, which provides loans to individuals and organization. 

Tertiary Sector – Meaning, Examples & Potential

The Indian economy is divided into three sectors i.e. Primary, Secondary and Tertiary. A good performance in all these sectors is essential for India’s economic growth. The primary sector basically acts as the raw material supplier while the secondary sector also known as the processing or the manufacturing sector turns the material into finished goods. The tertiary sector provides services to both the primary and secondary sectors of the Economy. The tertiary sector is quite important for the Indian economy as the majority of people in India are employed in this sector.

Table of Content

  • What is a Tertiary Sector?
  • Tertiary Sector Examples
  • What Kind of Industries Comes under the Tertiary Sector?
  • Potential of the Tertiary Sector
  • The Present Condition of the Tertiary Sector in India
Tertiary Sector and its Potential

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What is a Tertiary Sector?

The tertiary sector of the economy or also referred to as the service sector is a sector that includes tons of small business which acts as a service to the primary and the secondary sectors of the economy. The tertiary sector includes but is not limited to schools, financial institutions, insurance companies, banking institutions, restaurants, hotels, and many more. Many economists believe that the economy of a nation escalates when the government shits its focus on the development of the tertiary sector. The tertiary sector can also be further divided into different sectors like profit and non-profit....

Tertiary Sector Examples

Here are some of the examples of tertiary sector:...

What Kind of Industries Comes under the Tertiary Sector?

The tertiary sector can provide direct service, a framework for setting up a business, as well as can carry out business operations. A majority of the tertiary sector comprises institutions involved in shipping services that can be via roadways, railways, seaways, or airways. And almost every person involved in the shipping industry from a taxi/truck driver to the supply chain manager operating from head office comes under the tertiary sector....

Potential of the Tertiary Sector

In the last few decades, it has been observed that many economies shifted their focus from the manufacturing sector to the tertiary sector, thus escalating their economic growth....

The Present Condition of the Tertiary Sector in India

The tertiary sector in India is a boon and thus providing employment to millions of people and also escalating the economic growth of the country. The shifting of interest towards the tertiary sector has benefited the Indian economy quite a lot. The contribution of the tertiary sector to the GDP of India was 28.09% in 1960 which rose to 51% in the year 2021. Similarly, employment has also shifted from the primary manufacturing sector to the tertiary sector during these years, and at present, a majority of the Indian population is employed in the tertiary sector....

FAQs on Tertiary Sector

1. What is the significance of the tertiary sector in the Indian economy?...

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