Economics · Class 12 Commerce
Ch 6Tertiary Sector — Class 12 Economics, concept-first.
Every economy is conventionally divided into three broad sectors on the basis of the kind of activity carried out: the primary sector (agriculture, fishing, forestry, mining — activities that draw directly on natural resources), the secondary sector (manufacturing and construction — activities that transform raw materi…
Key concepts
Hover a concept to preview it and jump to its most relevant Q&A.
Tertiary (Services) Sector
The tertiary sector comprises all economic activities that produce an intangible service rather than a physical good — trade, transport, communication, banking, insurance, real estate, professional services, tourism, edu…
Most relevant Q&A
- What is meant by the tertiary sector of an economy?Free
- Mention any four services included in India's tertiary sector.Free
- Distinguish between the primary, secondary and tertiary sectors of the economy, giving one example of each.Free
- Write a short note on: TourismPreview
- Write a short note on: LICPreview
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Meaning and Scope of the Tertiary (Services) Sector
Every economy is conventionally divided into three broad sectors on the basis of the kind of activity carried out: the primary sector (agriculture, fishing, forestry, mining — activities that draw dir…
Composition of India's Tertiary Sector
India's National Accounts Statistics group the tertiary sector into several broad sub-sectors. Understanding this composition, which is a frequently asked topic in AP Board Class 12 Commerce Economics…
Contribution of the Tertiary Sector to National Income (GDP)
The share of a sector in an economy's Gross Value Added (GVA) is calculated as:
Contribution of the Tertiary Sector to Employment
While the tertiary sector generates the largest share of national income, its share of total employment in India is noticeably smaller than its share of GDP — a gap that is itself an important topic i…
Infrastructure Services and Economic Growth
Infrastructure services — power, transport (roads, railways, ports, airports), communication networks, and irrigation — form the backbone on which the primary and secondary sectors depend, which is wh…
Banking Services and Financial Inclusion
Banking is one of the oldest and most important components of the tertiary sector, because it performs the essential economic function of mobilising savings from households and channelling them, as cr…
Tourism as a Service Industry
Tourism is a labour-intensive service industry that generates income and employment across hotels, transport, travel agencies, handicrafts, food services and cultural/heritage sites, and also earns va…
Information Technology (IT) and IT-Enabled Services
Information Technology (IT) and IT-enabled services (ITeS) — software development, business process outsourcing (BPO), knowledge process outsourcing (KPO), and related digital services — represent the…
Importance of the Tertiary Sector in Economic Development
The tertiary sector's importance to economic development can be summarised under a few broad heads, a structure useful for essay-type answers in the AP Intermediate public examination:
Challenges Facing the Tertiary Sector
Despite its size and dynamism, India's tertiary sector faces several genuine structural challenges that are regularly tested in BIEAP Economics answer-writing for Class 12 Commerce:
Sample & Board Papers
Sample papers and previous-year board questions for this subject.
+−Show 8 questionsHide questions8 questions
- Q1What are the advantages of Roadways?Preview
- Q2Write a short note on: TourismPreview
- Q3What are the advantages of Road ways?Preview
- Q4Write a short note on: LICPreview
- Q5What is Tourism? Explain its importance in Indian Economy.Preview
- Q6Write a short note on: Service SectorPreview
- Q7What are the advantages of Roadways.Preview
- Q8Write a short note on: Service SectorPreview
More questions
11 Q+−Show 4 questionsHide questions4 questions
- Q1What is meant by the tertiary sector of an economy?Free
- Q2Mention any four services included in India's tertiary sector.Free
- Q3What is meant by 'services trade' in the context of the Indian economy?Preview
- Q4In a certain year, the primary sector contributed 17 per cent and the secondary sector contributed 26 per cent to a country's Gross Value Ad…Preview
+−Show 4 questionsHide questions4 questions
- Q5Distinguish between the primary, secondary and tertiary sectors of the economy, giving one example of each.Free
- Q6Explain briefly the contribution of the tertiary sector to India's Gross Domestic Product.Free
- Q7The Gross Value Added of the services sector in an economy rose from ₹80 lakh crore to ₹88 lakh crore over one year. Calculate the percentag…Preview
- Q8What role does infrastructure play in supporting the growth of the other sectors of the economy?Preview
+−Show 3 questionsHide questions3 questions
- Q9Explain the composition of India's tertiary sector and discuss its contribution to national income and employment.Free
- Q10Discuss the role of banking, tourism and the information technology (IT) industry in the growth of the Indian economy.Preview
- Q11Examine the major challenges faced by the tertiary sector in India today.Preview