Rising Importance of the Tertiary Sector in Production

2.3.1 Rising Importance of the Tertiary Sector in Production

Description

Quick Overview

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

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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.

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.

Memory Aids

🎵 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.

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.

Glossary of 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.