The tertiary sector includes services such as trade, hotels, transport, communication, banking, insurance, real estate, business services, public administration, defence, and other services.
Over the years, this sector has shown significant growth in India.
Trade, Hotels, Transport and Communication
One of the major parts of the tertiary sector is trade, hotels, transport, and communication.
- In 1950–51, its share in GDP was 11.34%
- By 2009–10, it increased to 26.55%
This means its share has more than doubled over time.
The growth of this sector has been steady and consistent:
- 1980–81: 17.45%
- 1990–91: 18.34%
- 2000–01: 22.30%
During the 1990s, the increase in this sector was mainly due to trade, transport, and communication, rather than hotels. In recent years, communication services (like telecom and internet) have grown the fastest compared to other components.
Financing, Insurance, Real Estate and Business Services
Another important part of the tertiary sector is financial and business services.
- In 1950–51, its share was 7.69% of GDP
- By 2009–10, it increased to 17.17%
This also shows that the share has almost doubled.
Within this category:
- Financing and business services have grown more than real estate and insurance
- This growth is mainly due to economic reforms like liberalization and privatization, especially in banking and finance
New types of services have also emerged, such as:
- Advertising
- Event management
- Other professional services
Public Administration, Defence and Other Services
This category mainly includes government-related services and expenditure.
- In 1950–51, its share was 10.61%
- By 2009–10, it increased to 13.57%
This increase shows that as the economy grows, the role of the government also expands, especially in areas like:
- Education
- Health
- Family welfare
Economic development requires greater spending on these welfare and public services.
Simple Understanding
- Trade & transport → strong and steady growth
- Communication → fastest growing in recent years
- Finance & business services → boosted by reforms
- Government services → growing with development