2.3.1 - Rising Importance of the Tertiary Sector in Production

Interactive Audio Lesson

Listen to a student-teacher conversation explaining the topic in a relatable way.

Understanding the Growth of the Tertiary Sector

Unlock Audio Lesson

Signup and Enroll to the course for listening the Audio Lesson

Teacher
Teacher

Today, we'll begin our discussion on the rising importance of the tertiary sector in India's economy. Can anyone tell me what the tertiary sector includes?

Student 1
Student 1

It includes services like education, healthcare, and banking, right?

Teacher
Teacher

Absolutely! The tertiary sector focuses on providing services rather than goods. Now, what are some reasons you think this sector is growing more than the others?

Student 2
Student 2

I think more people are moving to cities, so they need more services.

Teacher
Teacher

Exactly! Urbanization leads to a greater demand for services such as transportation, education, and healthcare.

Student 3
Student 3

So, does this mean the government plays a big role in the tertiary sector?

Teacher
Teacher

Yes! The government is crucial in providing basic services to the population, especially in developing countries.

Teacher
Teacher

To summarize, the growth in the tertiary sector is linked to urban demand, government services, and rising incomes.

Economic Indicators and Employment

Unlock Audio Lesson

Signup and Enroll to the course for listening the Audio Lesson

Teacher
Teacher

Now, let's talk about how the tertiary sector impacts the economy. While it produces a significant share of our GDP, it doesn't create enough jobs. Can anyone think of a reason why?

Student 4
Student 4

Maybe because many people are still in agriculture?

Teacher
Teacher

Great observation! Many workers in agriculture face underemployment – they work but not to their full potential.

Student 1
Student 1

So even if the tertiary sector is growing, it doesn't mean that everyone can find good jobs?

Teacher
Teacher

Exactly! This discrepancy shows how economic growth doesn't always lead to job growth across all sectors.

Teacher
Teacher

To wrap up, while the tertiary sector adds much to GDP, it contrasts with employment trends in agriculture, highlighting the need for comprehensive job creation strategies.

Challenges and Opportunities in the Service Sector

Unlock Audio Lesson

Signup and Enroll to the course for listening the Audio Lesson

Teacher
Teacher

As we explore the challenges faced by the tertiary sector, what do you think are the implications for the workers in unorganized sectors?

Student 2
Student 2

I think they might not have job security and could be paid less.

Teacher
Teacher

Correct! Unorganized sector workers often face exploitation and irregular payments.

Student 3
Student 3

Are there ways to improve their situation?

Teacher
Teacher

Yes! Some measures include providing better regulations and support through government schemes. The MGNREGA is one example aiming to ensure employment.

Teacher
Teacher

In summary, although the tertiary sector presents many opportunities, we must address the challenges of underemployment and job security to promote equitable growth.

Introduction & Overview

Read a summary of the section's main ideas. Choose from Basic, Medium, or Detailed.

Quick Overview

The tertiary sector in India has become increasingly significant in production and employment, surpassing traditional sectors like agriculture and industry.

Standard

This section highlights the growth of the tertiary sector in India over the past decades, explaining various factors contributing to its rise, such as urbanization, increased demand for services, and the evolving economic landscape. It also discusses the disparities in employment growth across sectors, notably emphasizing underemployment in agriculture.

Detailed

In recent decades, especially between 1973-74 and 2013-14, the tertiary sector in India has grown substantially, becoming the largest contributor to the country's GDP. This growth can be attributed to several factors: the essential services provided by government (e.g., health, education, security), the rising demand for various services in urban areas due to increasing income levels, and the emergence of new sectors driven by technology. However, despite the tertiary sector's expansion in GDP, employment did not experience a corresponding increase, with a majority still employed in agriculture due to underemployment. This section explores these dynamics, illustrating the crucial role of the service sector while also recognizing the challenges faced by workers in unorganized sectors.

Youtube Videos

Sectors of Indian Economy | 10 Minutes Rapid Revision | Class 10 SST
Sectors of Indian Economy | 10 Minutes Rapid Revision | Class 10 SST
Tertiary Sector of the Economy | Economics | Class 10th | Chapter 2 | 2023-24
Tertiary Sector of the Economy | Economics | Class 10th | Chapter 2 | 2023-24
Sectors of Indian Economy class 10 full chapter (Animation) | Class 10 Economics Chapter 2 | CBSE
Sectors of Indian Economy class 10 full chapter (Animation) | Class 10 Economics Chapter 2 | CBSE
Sectors of Indian Economy | New One Shot | Class 10 Economics 2024-25 | Digraj Singh Rajput
Sectors of Indian Economy | New One Shot | Class 10 Economics 2024-25 | Digraj Singh Rajput
Rising Importance of Tertiary Sector | Sectors of the Indian Economy | Class 10 Economics Chapter 2
Rising Importance of Tertiary Sector | Sectors of the Indian Economy | Class 10 Economics Chapter 2
Class 10 Economics Chapter 2 Sectors of Indian Economy Part4 |Rising importance of tertiary sector|
Class 10 Economics Chapter 2 Sectors of Indian Economy Part4 |Rising importance of tertiary sector|
Sectors of indian economy class 10 One Shot | Animated Full (हिन्दी में) Explained | Economics Ch-2
Sectors of indian economy class 10 One Shot | Animated Full (हिन्दी में) Explained | Economics Ch-2
Economics | Sectors of Indian Economy | Full Chapter Explanation | Digraj Singh Rajput
Economics | Sectors of Indian Economy | Full Chapter Explanation | Digraj Singh Rajput
Why is the tertiary sector becoming so important in India? Give at least four reasons. Or Why is ...
Why is the tertiary sector becoming so important in India? Give at least four reasons. Or Why is ...
Why The Tertiary Sector Becoming So Important in India | Chapter 2 | Economics | Class 10 | iPrep
Why The Tertiary Sector Becoming So Important in India | Chapter 2 | Economics | Class 10 | iPrep

Audio Book

Dive deep into the subject with an immersive audiobook experience.

Growth of the Tertiary Sector

Unlock Audio Book

Signup and Enroll to the course for listening the Audio Book

Over the forty years between 1973-74 and 2013-14, while production in all the three sectors has increased, it has increased the most in the tertiary sector. As a result, in the year 2013-14, the tertiary sector has emerged as the largest producing sector in India replacing the primary sector.

Detailed Explanation

From 1973 to 2014, the production in India saw a significant shift towards the tertiary sector, which includes services like healthcare, education, and banking. The data indicates that while all sectors grew, the tertiary sector's growth was the most pronounced, ultimately making it the primary contributor to India's economy, overtaking agriculture. This marks a fundamental change in economic structures as societies evolve and develop.

Examples & Analogies

Consider a growing city like Bengaluru in India. As its tech industry flourished, many people shifted from agriculture and manufacturing jobs to roles in IT services, healthcare, and education, showcasing a direct reflection of the shift towards the tertiary sector.

Reasons for the Tertiary Sector’s Importance

Unlock Audio Book

Signup and Enroll to the course for listening the Audio Book

Why is the tertiary sector becoming so important in India? There could be several reasons. First, in any country several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, etc. are required. These can be considered as basic services. In a developing country the government has to take responsibility for the provision of these services.

Detailed Explanation

The rise in importance of the tertiary sector can be attributed to the increasing demand for essential services by the population. As a country develops, citizens require better healthcare, education, and various administrative services, which the government often provides. This aspect not only addresses basic needs but also establishes a foundation for continuous development in other sectors.

Examples & Analogies

Imagine trying to run a successful business without reliable access to a bank, transport for deliveries, or educated employees. As more people require services that support their daily lives and businesses, the sector handling these, i.e., tertiary, grows in priority.

Impact of Agricultural and Industrial Development

Unlock Audio Book

Signup and Enroll to the course for listening the Audio Book

Second, the development of agriculture and industry leads to the development of services such as transport, trade, storage and the like, as we have already seen. Greater the development of the primary and secondary sectors, more would be the demand for such services.

Detailed Explanation

As agriculture and industry improve and produce more goods, there is a corresponding increase in the demand for services that facilitate these activities. This includes logistics for transporting goods, storage facilities to keep them until they are sold, and trade services that connect producers with consumers.

Examples & Analogies

Consider how farmers growing more vegetables will need trucks to transport their produce to markets. The increased farming activity boosts demand for transport services, interlinking agriculture's growth with the need for tertiary sector jobs.

Rising Income Levels and Service Demand

Unlock Audio Book

Signup and Enroll to the course for listening the Audio Book

Third, as income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools, professional training etc. You can see this change quite sharply in cities, especially in big cities.

Detailed Explanation

With increasing income levels, people prefer to spend on services that enhance their quality of life, such as dining out, entertainment, and personal healthcare. This shift in consumer behavior illustrates a growing middle class that prioritizes spending on services rather than basic needs alone.

Examples & Analogies

Think about urban families that enjoy ordering food through apps or financially supporting their children's education in private schools; such behavior is common in cities with rapidly rising incomes, fueling the growth of the tertiary sector.

Technological Advancements in Services

Unlock Audio Book

Signup and Enroll to the course for listening the Audio Book

Fourth, over the past decade or so, certain new services such as those based on information and communication technology have become important and essential. The production of these services has been rising rapidly.

Detailed Explanation

Technology has transformed the service sector dramatically, enabling the rapid growth of IT services, e-commerce, and digital communication. These sectors not only generate substantial employment but also add significant value to the economy.

Examples & Analogies

Consider the rise of startups in areas like app development and online education portals. These modern tech-driven services exemplify how the tertiary sector adapts and thrives in response to technological advancements.

Inequality in the Tertiary Sector

Unlock Audio Book

Signup and Enroll to the course for listening the Audio Book

However, you must remember that not all of the service sector is growing equally well. Service sector in India employs many different kinds of people. At one end there are a limited number of services that employ highly skilled and educated workers. At the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair persons, transport persons, etc.

Detailed Explanation

While some tertiary sector jobs demand high education and skill levels, others are low-paying and lack job security. This disparity creates a divide within the workforce, highlighting the need for policies that encourage skill development and equitable growth across the sector.

Examples & Analogies

An example is the contrast between a professional working in a multinational company versus a street vendor. The former likely enjoys better pay and job security while the latter may struggle to make ends meet despite their contributions.

Definitions & Key Concepts

Learn essential terms and foundational ideas that form the basis of the topic.

Key Concepts

  • Tertiary Sector: The service industry that supports the primary and secondary sectors.

  • Underemployment: Workers engaged in jobs where they do not fully utilize their skills.

  • GDP: The monetary measure of total production and economic activity.

  • Service Demand: The increasing need for various services due to urbanization and rising incomes.

  • Unorganized Sector Challenges: Low job security and inadequate payment faced by workers.

Examples & Real-Life Applications

See how the concepts apply in real-world scenarios to understand their practical implications.

Examples

  • Example 1: The rise of IT services in urban India has created new job opportunities but has not significantly reduced agricultural employment.

  • Example 2: The demand for transportation and healthcare services has surged with urban growth.

Memory Aids

Use mnemonics, acronyms, or visual cues to help remember key information more easily.

🎵 Rhymes Time

  • Tertiary brings service cheer, To help our economy steer!

📖 Fascinating Stories

  • Once upon a time, in a growing city, people only farmed. But as they moved to towns, services were born, creating jobs for many others.

🧠 Other Memory Gems

  • TSS - Tertiary, Services, Success - for remembering the importance of the tertiary sector.

🎯 Super Acronyms

GDP - Gross Domestic Productivity, focusing on total economic activity.

Flash Cards

Review key concepts with flashcards.

Glossary of Terms

Review the Definitions for terms.

  • Term: Tertiary Sector

    Definition:

    The part of the economy that provides services that support the production of goods and enhance quality of life.

  • Term: Underemployment

    Definition:

    A situation in which workers are employed but are not working to their full potential.

  • Term: GDP (Gross Domestic Product)

    Definition:

    The total value of all final goods and services produced within a country during a specific period.

  • Term: Urbanization

    Definition:

    The process through which rural areas transform into urban areas, increasing the proportion of the population living in cities.

  • Term: Unorganized Sector

    Definition:

    A segment of the economy where workers do not have formal contracts and are not protected by labor laws.