What is tertiary sector?
What is tertiary sector?
Tertiary sector helps in the development of secondary and primary sectors. Tertiary sector supports the production process, the activities of the tertiary sector, by themselves, do not produce goods.
There are 3 main sectors based on the activities carried out. The sectors can be classified as
- Primary,
- Secondary and
- Tertiary sector.
Gross Domestic Product (GDP) of a country is the sum of the final value of the services and goods produced in each of the above three sectors, for a particular year. The size of the country’s economy is given by the GDP.
Employment – Tertiary Sector
- The trend of employment in tertiary sector or services sector is increasing, whereas the employment in primary and secondary sector is more or less the same or even decreasing.
- When compared, the developed countries have more people working or employed in the services sector than the less developed countries.
- Tourism sector is the World’s largest single tertiary activity employing around 250 million people and revenue generated in the tourism sector is 40% of the total GDP.
- The factors affecting the tourism industry are culture, history, landscape, climate, art and economy.
- India is becoming very popular in the area of medical tourism.
Instead of goods, the tertiary sector provides different kinds of services. Hence the tertiary sector is also known as the Service Sector.
Tertiary or Service Sector
The Service sector can be divided into different types based on the activities carried out. The main division of service sector is given below:
- Tertiary activities
- Quaternary activities
- Quinary activities
Tertiary Sector – Activities
The Tertiary activities of the service sector/tertiary sector can be broadly divided into the following
- Trade and Commerce
- Services
- Transportation
- Communication
Trade and Commerce
Trade and commerce segment of the tertiary sector activities can be further divided into two types which are given below:
- Wholesale trade
- Retail trade
Wholesale Trade
The wholesale trade segment can be further divided into 2 types, which are mentioned below:
- Rural mandies
- Urban supply houses
Retail Trade
The retail trade segment into two categories, which are listed below:
- Urban and
- Rural
Rural
The rural sub segment of the retail trade can be further classified as given below:
- Street peddling
- Stores
- Periodic markets
- Public Distribution System (PDS)
Urban
The urban sub-segment of the retail trade can be further classified as given below:
- Public Distribution System (PDS)
- Mail Order – This segment can be divided into internet and telephone.
- Convenient Shopping Centres
- Chain Stores
Transportation
To transport raw materials and manufactured goods from one location to the other, the transportation segment is extremely vital. It helps in consumption and distribution of goods. It is an organised industry. Transportation is one of the four main classifications of tertiary activities. This classification can be further divided into four different categories:
- Road network
- Rail network
- Waterways
- Air – can be further classified as passenger and cargo services.
Waterways
Waterways can be further divided into two types:
- Inland
- Oceanic – Oceanic can be further classified into Cargo services and Passenger services.
Services
Services segment is one of the four important classifications of the tertiary activities. This services segment can be further classified as given below:
- Real estate
- Financial Banking
- Insurance
- Personal and Professional – this can be further classified into Government, Private and NGO.
Communication
Mass media is very important for entertainment and advertising. The Internet has revolutionised the way services can be provided at the doorstep and how information can be acquired. Communication is one of the four important classifications of tertiary activities. This segment can be divided into the following:
- Audio Visual – which can be further classified as TV, radio, films, print media. Newspapers and magazines come under print media.
- Telecommunication such as landline and mobile.
- Means of transportation
Tertiary sector helps in the development of secondary and primary sectors. Tertiary sector supports the production process, the activities of the tertiary sector, by themselves, do not produce goods.
There are 3 main sectors based on the activities carried out. The sectors can be classified as
- Primary,
- Secondary and
- Tertiary sector.
Gross Domestic Product (GDP) of a country is the sum of the final value of the services and goods produced in each of the above three sectors, for a particular year. The size of the country’s economy is given by the GDP.
Employment – Tertiary Sector
- The trend of employment in tertiary sector or services sector is increasing, whereas the employment in primary and secondary sector is more or less the same or even decreasing.
- When compared, the developed countries have more people working or employed in the services sector than the less developed countries.
- Tourism sector is the World’s largest single tertiary activity employing around 250 million people and revenue generated in the tourism sector is 40% of the total GDP.
- The factors affecting the tourism industry are culture, history, landscape, climate, art and economy.
- India is becoming very popular in the area of medical tourism.
Instead of goods, the tertiary sector provides different kinds of services. Hence the tertiary sector is also known as the Service Sector.
Tertiary or Service Sector
The Service sector can be divided into different types based on the activities carried out. The main division of service sector is given below:
- Tertiary activities
- Quaternary activities
- Quinary activities
Tertiary Sector – Activities
The Tertiary activities of the service sector/tertiary sector can be broadly divided into the following
- Trade and Commerce
- Services
- Transportation
- Communication
Trade and Commerce
Trade and commerce segment of the tertiary sector activities can be further divided into two types which are given below:
- Wholesale trade
- Retail trade
Wholesale Trade
The wholesale trade segment can be further divided into 2 types, which are mentioned below:
- Rural mandies
- Urban supply houses
Retail Trade
The retail trade segment into two categories, which are listed below:
- Urban and
- Rural
Rural
The rural sub segment of the retail trade can be further classified as given below:
- Street peddling
- Stores
- Periodic markets
- Public Distribution System (PDS)
Urban
The urban sub-segment of the retail trade can be further classified as given below:
- Public Distribution System (PDS)
- Mail Order – This segment can be divided into internet and telephone.
- Convenient Shopping Centres
- Chain Stores
Transportation
To transport raw materials and manufactured goods from one location to the other, the transportation segment is extremely vital. It helps in consumption and distribution of goods. It is an organised industry. Transportation is one of the four main classifications of tertiary activities. This classification can be further divided into four different categories:
- Road network
- Rail network
- Waterways
- Air – can be further classified as passenger and cargo services.
Waterways
Waterways can be further divided into two types:
- Inland
- Oceanic – Oceanic can be further classified into Cargo services and Passenger services.
Services
Services segment is one of the four important classifications of the tertiary activities. This services segment can be further classified as given below:
- Real estate
- Financial Banking
- Insurance
- Personal and Professional – this can be further classified into Government, Private and NGO.
Communication
Mass media is very important for entertainment and advertising. The Internet has revolutionised the way services can be provided at the doorstep and how information can be acquired. Communication is one of the four important classifications of tertiary activities. This segment can be divided into the following:
- Audio Visual – which can be further classified as TV, radio, films, print media. Newspapers and magazines come under print media.
- Telecommunication such as landline and mobile.
- Means of transportation
