Previous Year Question

The Service Sector is also known as the Tertiary Sector. NCERT classifies economic activities, on the basis of the nature of activity, into the Primary, Secondary and Tertiary sectors. Activities in the tertiary sector generally do not directly produce goods; instead, they provide services and support to people and to activities in the primary and secondary sectors.

Transport, banking, insurance, communication, trade, education and health are major examples of tertiary activities. For instance, transport helps move products from one place to another, while banking provides financial services required for production and trade. This is why the tertiary sector is also called the Service Sector.

The basic distinction among the three sectors can be remembered as: direct use of natural resources = Primary Sector; conversion of raw materials into goods = Secondary Sector; provision of services = Tertiary Sector.