Economics · Ch 6 — Tertiary Sector
Composition of India's Tertiary Sector
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 question papers, helps in appreciating just how wide the services sector really is:
| Sub-sector | Illustrative activities |
|---|---|
| Trade, hotels and restaurants | Wholesale and retail trade, hospitality |
| Transport, storage and communication | Railways, road/air/water transport, postal services, telecom, IT |
| Financial services | Banking, insurance, mutual funds, stock markets |
| Real estate, ownership of dwellings and professional services | Housing rentals, legal/accounting/consultancy services |
| Public administration and defence | Government departments, law and order, defence services |
| Other services | Education, health, personal and community services |
Each of these sub-sectors has grown at a different pace. Financial services, telecommunications and information technology have expanded especially rapidly since the economic reforms of 1991 opened the sector to greater private participation and, in the case of IT, to global demand. Trade and transport, by contrast, have grown more steadily in line with the overall size of the economy, since they are closely tied to the movement of goods produced in the primary and secondary sectors. …