ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economists have found that as a nation’s economy grows and develops, the tertiary sector becomes larger while the primary sector that produces raw materials shrinks. The service sector is now the largest sector of the global economy in terms of value-added and is especially important in more advanced economies.

Detailed explanation-2: -Tertiary sector has become important in India because the demand for services such as transport, trade, storage will increase with the development of primary and secondary sectors. Other reason is the fact that the demand for tourism, shopping, private schools, private hospitals, etc.

Detailed explanation-3: -In the past 100 years, there has been a further shift from secondary to tertiary sector in developed countries. The service sector has become the most important in terms of total production.

Detailed explanation-4: -Ans. Now, the tertiary sector has come up as the largest produce and the creator of income in the country. The main reasons responsible for the rapid increase in the contribution of tertiary sector in India are as follows: (1) Expansion of services.

Detailed explanation-5: -Question: Why is the Tertiary Sector important to the economy? Answer: The tertiary sector provides basic services like public transportation, medical care, electricity, banking, post office, etc. The tertiary sector creates a huge area for employment even for uneducated and unskilled workers.