Question

How is the tertiary sector different from other sectors? Illustrate with a few examples

Answer 1

• Tertiary sector is different from the primary and secondary sectors.
• The activities of the tertiary sector help in the development of secondary and primary sectors.
• Tertiary sector activities do not produce goods by themselves, but they support or aid the process of production in other sectors.
• To help understand the above point, let us consider an example: the goods that are produced in the secondary sector and primary sector need to be transported to their destination through trains or trucks and then those products are sold in retail or wholesale shops.
• To help in the trade or production, credit would be required, hence the need to borrow from banks would arise, and communication through phones or letters are also a necessity to complete the processes involved in production and trade.
• After production, the need to store the produce in go downs or cold storage facilities will also arise.
• From the above details one can conclude that examples of tertiary sector activities are trade, banking, communication, storage and , transportation.
• Instead of producing goods, the tertiary sector is involved in generating services at various levels serving different purposes. Hence the tertiary sector is also known as the services sector.
• However, the services sector also encompasses essential services which need not necessarily help in producing goods. Examples are doctors, lawyers, teachers, people in accounting and administrative services, services provided through Information technology such as software companies, call centers, ATM booths, internet cafes, and people providing personal services such as cobblers, and washermen, and barbers.