The document defines and describes the tertiary economic sector. It begins by defining the tertiary sector as the service sector, which includes activities where people offer knowledge and time to improve productivity through services rather than finished goods. It then discusses the importance and growth of the tertiary sector in India due to increases in population, agricultural/industrial development, and rising incomes. The document goes on to classify and describe key tertiary activities like trade, transport, communication, services, and tourism. It concludes by noting that the tertiary sector now accounts for about half of India's GDP and employment.

1. TERTIARY ECONOMIC
ACTIVITIES

2. Content
 Definition
 Importance of Tertiary Sector
 How Tertiary Sector influences other Sectors
 Classification
 Trade
 Transport
 Communication
 Services
 Tourism
 Tertiary Sector in India

3. What is Tertiary Economic Activity?
The tertiary sector of economy ( also known as the service sector or the service
industry) is one of the three economic sector, the others being the secondary
sector ( same as manufacturing) and the primary sector (agriculture, fishing,
and extraction such as mining).
The service sector consists of soft parts of the economy, i.e. activities
where people offer their knowledge and time to improve productivity,
performance, potential, and sustainability, which is termed as affective labor.
The basic characteristic of this sector is the production of services instead of
end products.

4. Importance of Tertiary Sector
Over the past 30 years, while production has increased in all the 3 sectors, it has increased the most in
the tertiary sector. The reasons for the fast development of tertiary sector in India are as follows:-
 The necessity for ‘basic services’ like hospitals, educational institutions, post and telegraph services,
police stations, courts, administrative offices, defense, transport and banking services have increased
with the increase in population.
 The development in the Agricultural and Industrial sectors has increased the need for services such as
transportation, storage and trade.
 As the income of the people increased the demand for services in tourism, retailing, catering and elite
education also increased.

5. How Tertiary sector influences Other Sector
Primary sector Secondary sectorTertiary sector
Tertiary sector Tertiary sector
(Transport)

6. Classification of Tertiary Sector
Tertiary Economic
Activities
Trade Transport Communication Services Tourism

7. Trade
Trade involves the transfer of the ownership of goods or services from one person or entity to another
in exchange for other goods or services or for money. Possible synonyms of “trade” include “commerce”
and “financial transaction”. A network that allows trade is called a Market. There are two type of marketing
centre
Rural Marketing- Rural marketing is the process of marketing in rural
areas. It includes the adoption of various marketing strategies and policies in
rural market with a view to convert the needs and wants of rural people into
demand.
Urban Marketing- urban Marketing is the process of
marketing in
urban areas. It provides facility to wide services to large areas. It
offers specialized
services. Urban marketing cetres provide services beyond cities at
national or

8. There are two types of trade- wholesale and retail trade.
Wholesale Trade- Wholesaling is the sale of goods to retailers
In general, it is the sale o goods to anyone other than a standard consumer.
There are three types of wholesalers- merchant wholesalers, Agents, Brokers.
In developing countries the linkage between the producer and the retailer is
Still usually provided by assembly and wholesale markets.
Retail Trade- Retail is the process of selling consumer
goods and/or
services to consumes through multiple channels of distribution
to earn a
profit. In the 2000s, an increasing amount of
retailing is done online using electronic payment
and delivery via a courier or postal mail.

9. International Trade
International Trade is the exchange of capital, goods and services across international borders or
territories, which could involve the activities of the government and individual.
Importance Of International Trade:-
 Qualitative improvement of goods
 Increasing demands
 Increasing the productivity of goods
 International relationship
 Development of industries
 Insufficient resources
 Increase sales and profits

10. WTO (World Trade Organization) :- The world Trade Organization is an
intergovernmental organization which regulates international trades. The WTO officially
on 1st January1995 under Marrakesh Agreement, signed by 123 nations on
15th April1994, replacing the General Agreement on Tariffs and Trade (GATT).
Function Of WTO
 The WTO shall provide the forum for negotiations among its members concerning their
trade relations in matters dealt with under the Agreement in the Annexes to this Agreement.
 The WTO shall administer the Understanding on Rules and Procedures Governing the
Disputes.
 The WTO shall administer Trade Policy Review Mechanism.
SEZ (Special Economic Zone) & EPZ (Export Processing Zone):- Sez is commonly
used as a generic term to refer to only one modern economic zone. In these zones business and
laws differ from the rest of the country. The name of SEZ in India are- Surat SEZ, Jaipur SEZ,
Electronic city- WIPRO etc.
EPZ also called Free Trade Zone, formerly free port is an area within which goods may be
handled, manufactured or re-exported without the intervention of customs authorities. The name of

11. Transport
Transport or transportation is the movement of people, animals and goods from
one location to another. Transport is important because it enables trade between
persons, which is essential for the development of civilizations.
MODE OF TRANSPORT :-
Road Transport- It is used for personal travel (over short distance)
and transporting goods. The most commonly road vehicle is automobile
like bus, truck, motorcycles etc.
Railway- Rail transport is where a train runs along a set off
parallel
steel rails, known as a railway or railroad. It carries passenger.
used
for carrying large and heavy goods. It can be powered by steam,
or
electricity.

12. .
Waterways- Water transport is movement by means of a watercraft
Such as a barge , boat, ship or sailboat- over a body of water, such as sea, lake,
ocean, river, canal. It is a used for carrying heavy and large goods and people.
Airway- A fixed-wing aircraft, commonly called aircraft, is a
heavier-
then -air craft where movement of the air in relation to the wings
is used to
generate lift. The aircraft is the second fastest method of
transport, after
rocket. Helicopters also use as a aircraft. It is long distance place
to another
without any difficulties.
Ropeway- A ropeway is a form of naval lifting device used to
transport light stores and equipment across rivers or ravines. It is
used for carrying goods from one.

13. Pipe-lineway- Pipeline transport sends goods through a pipe, most commonly
liquid and gases are sent, but pneumatic tubes can also send solid capsules
using compressed air. For liquids/ gases, any chemically stable liquid or gas can
be sent through a pipeline. Short distance system exists for sewage, water,
slurry and long distance networks are used for petroleum and natural gas.

14. Communication
Communication( from Latin commūnicāre, meaning "to share”)is the purposeful activity of information
exchange between two or more participants in order to convey or receive the intended meaning through a
shared system of signs and semiotic rules. The basic steps of communication are the forming of
communicative intent, message composition, message encoding, transmission of signal, reception of signal,
message decoding and finally interpretation of the message by the recipient.
 MODE OF COMMUNICATION-
COMMUNICATION

15. Services
A type of economic activity that is intangible, is not stored and does not result in ownership. A service
is consumed at the point of sale. Service are one of the two key components of economics, the other being
goods. Example of services include the transfer of goods, such as thee postal service delivering mail, and
the use of experience, such as a person visiting doctor.
Classification of services –
Banking- Banks act as payment agents by conducting checking or current
accounts for
customers, paying cheques drawn by customers on he bank, and collecting cheques
deposited to
customers’ current accounts. It is a financial intermediary that creates credit by
lending money to a
borrower, thereby creating a corresponding deposit on the bank’s balance sheet.
There are two type
of banks- 1) Commercial bank, 2) Central bank.
Insurance- Insurance is the equitable transfer of the risk of a losses, form one entity
to another in exchange for money. It is a form of risk management primarily used to hedge
Against the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is selling the
Insurance; the insured, o policyholder, is the person or entity buying the insurance policy. The

16. Advertisement & Marketing- Advertising is form of marketing communication used to promote
or sell something, usually a business’s product or service. Advertising
messages
are usually paid for by sponsors and viewed via various old media,
including mass media
such as newspaper, magazines, television advertisement, outdoor
advertising, radio or
new media like websites, blogs or text messages. Commercial ads seek to
generate
increased consumption of their products or services through “branding”,
which
associates a product name or image with certain qualities in the minds of
consumers.

17. Tourism
Tourism is a travel for pleasure, also the theory and practice of touring, the business of attracting,
accommodating and entertaining tourists, and the business of operating tours. Tourism may be
international, or within the traveler’s country. There are two type of tourism- i) International tourism, ii)
National Tourism.
International Tourism- International tourism is when people travel globally outside of
their region and home country. This means a temporary movement of people to one place to another
for different reasons. International Tourism
According to purpose
Commercial Tourism
Holiday Tourism
Tourism for General interest
According to distance
Short distance Tourism
Long distance Tourism

18. National Tourism- Basically, national tourism means tourism in national level or the whole
country. Unlike local tourism, it covers more of the country in general and not only of a specific locality.
It is classified into three types-
Local Tourism Regional Tourism Tourism in a Country
(Zoo) ( From North to South of a state) (Thar Desert)
There are also different types of tourism such as Ecotourism , Educational Tourism ,
Sustainable Tourism etc.

19. Tertiary Sector In India
 50% share in gross domestic product (GDP) in the year 2013-2014
 Growth by 9% annually.(2013-2014)
 Contributing to about a quarter of total employment(26.8%)
 Accounting for a high share in FDI inflows and over 1/3 of
total exports.
 7th largest service exporters in India.

20. Reference
 Chaya Bhugol Porichoy (XII) (2014)(Pg-260) – Dr. Goutam Mallick
 Ucchomadhyamik Arthoniti (XI) (2013)(Pg -231) – Dr. Debashish Majumder
 Ucchomadhyamik Arthoniti (XII) (2014)(Pg -288) – Dr. Debashish Majumder
Bibliography
 Economic Survey 2012-13 (Pg -210) – indiabudget.nic.in
 Wikipedia
 Bing
 Slide Share
 Answers.yahoo.com

21. Thank You….
Created by,
Riya Dey