(a)OR(b)

Describe the importance of tertiary sector in the economy.

(i) The activities of tertiary sector help in the development of the primary and secondary sectors.

(ii) Tertiary activities do not produce goods but they are a support for the production process.

(iii) The tertiary sector is also called the service sector.

(iv) For example, goods that are produced in the primary or secondary sector would need to be transported by trucks or trains to be sold in wholesale and retail shops or to be stored in godowns.

(v) Communication with others over telephone or sending letters or borrowing money from banks (banking) to help production and trade.

(vi) Transport, storage, communication, banking, trade are some examples of tertiary activities and generate services rather than goods.

(vii) Service sector also includes some essential services- for example, teachers, doctors, and personal services such as washer men, barbers, cobblers, lawyers, and people who provide administrative and accounting works.

(viii) In recent times, certain new services based on information technology such as internet cafe, ATM booths, call centres, software companies etc have become important.

(ix) This way, this sector generates employment opportunities.

(x) It contributes to the GDP of the nation and generates revenue. In fact, service sector has emerged as the largest contributor to the Indian GDP for many years.

(xi) This sector improves the quality of life.

(b) Describe the features of organized sector of the economy.

(i) Organised sector covers enterprises or places of work where the terms of employment are regular and therefore, people have assured work.

(ii) They are registered by the government and have to follow its rules and regulations which are given in various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act etc.

(iii) It is called organised because it has some formal processes and procedures.

(iv) Some of these people may not be employed by anyone but may work on their own but they too have to register themselves with the government and follow the rules and regulations.

(v) Workers in the organised sector enjoy security of employment. They are expected to work only a fixed number of hours.

(vi) If they work more, they have to be paid overtime by the employer.

(vii) They also get several other benefits from the employers- for example, paid leave, payment during holidays, provident fund, gratuity etc.

(viii) They are supposed to get medical benefits and, under the laws, the factory manager has to ensure facilities like drinking water and a safe working environment.

(ix) Provision of pension at the time of retirement for the workers.