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Q.(a) Assess the growth and significance of service sector in the development of the world economy.

(OR)
(b) Assess the growth and significance of transport and communication services in the world economy.
CBSECBSE Class XII Board 2025Subjective· 5mImportance★★★★★
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Part (a): The service (tertiary) sector has grown to dominate GDP and employment in developed economies and is significant because it links producers and consumers, supports all sectors, creates jobs and drives global integration.

Part (b): Transport and communication services have grown through technological advance and are the arteries and nervous system of the world economy — enabling trade, globalisation, supply chains and market integration.

Part (a)

The service or tertiary sector covers activities that provide services rather than produce goods — trade and commerce, transport, communication, banking and insurance, education, health, tourism, public administration, and knowledge-based quaternary and quinary work such as research, IT and consultancy.

Growth. Over the last century, and especially in recent decades, the service sector has expanded to become the largest sector in developed economies, contributing the biggest share of GDP and employment; even developing economies like India have a very large and fast-growing services share. This growth is driven by rising incomes and consumer demand, urbanisation, the increasing specialisation and complexity of economies, and above all the revolution in information technology, which created entirely new services and allowed old ones to be traded across borders.

Significance.

  • Services link producers and consumers and make markets work — trade, transport and communication move goods and information from where they are produced to where they are needed.
  • They support every other sector: agriculture and industry depend on transport, banking, insurance and marketing.
  • They generate huge employment, from retailing and transport to software and finance.
  • Through IT and outsourcing — such as India's Business Process Outsourcing (BPO) industry — services integrate the global economy and earn foreign exchange. …

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