Tertiary Sector Of Indian Econmy

3 Sectors Of Indian Economy

• Primary sector of the economy: Involves the
extraction and production of raw materials
• Secondary sector of the economy: Involves the
transformation of raw or intermediate materials
into goods e.g. manufacturing steel into cars, or
textiles into clothing.
• Tertiary sector of the economy: Involves the
provision of services to consumers and businesses,
such as baby-sitting, cinema and banking.
Tertiary Sector Of Indian Economy
decreasing trend of employment in primary sector
and an increasing trend of employment in tertiary
 Major Reasons Of Growth
• availability of vast skilled labor
• dividend emanating from a higher proportion
of younger population
• demand for many professional and consumer
services
• Service-input intensive method of organizing
production
 Cont…..
• growth in the final demand for services.
• Service activity can also be stimulated by
technological advances (IT Sector)
• Liberalization
• Role of Foreign Demand
 Conclusion
• There has been a structural change in the Indian
economy since Independence. This is reflected in the
change in the sector-wise composition of income and
workforce over the years.
• Most of the growth in services has been in
information technology (IT), business process
outsourcing (BPO) services and knowledge based
activities; other sectors like telecommunications,
financial services, community services and hotels
and restaurants