Types of Tertiary Industry with Examples

In the modern business environment, industrial types encompass different classifications based on their operations and use. For a better understanding of business function, economists have identified four major economic sectors, including primary, secondary, tertiary and quaternary sectors. One of the essential business sectors involves tertiary, which is also known as the service sector, and there are several types of tertiary industry. The tertiary or service sector deals with service delivery to primary and secondary industry throughout the operating environment. The functions and types of the tertiary sector are related to the operations of other sectors, which ultimately help boost economic growth.

‍

What is the Tertiary Industry?

The tertiary industry is known as the economic branch that deals with creating services to businesses as well as customers across the specific environment. Economists believe that the tertiary sector is the most important aspect of the modern economy because it provides operational infrastructure for other industries. The service provided by businesses operating in the tertiary sector allows primary and secondary sector firms to commercialise goods and services to the end customers. According to the financial data presented by the World Bank, the Indian tertiary sector is encompassed in the top 10 largest service sector output nations across the globe. The net valuation of India's Tertiary and Service Industry was around 1.9 billion USD within the financial year 2024. There are various types of tertiary industry, such as education, public service, media, entertainment, hospital and wellness, which are going to be discussed with examples.

Types of Tertiary Industry and Their Examples

Education

One of the major components of the tertiary sector is the education industry, which deals with the learning process across schools as well as universities. People associated with this education sector are responsible for education and examination preparation services that assist students in improving their knowledge capabilities. Moreover, the above mentioned services are supported by the provision of study materials that aid students in preparation for exams and ultimately earn a degree of their choice. Examples of jobs associated with the education sector are teacher, trainer, professor and principal.

Financial Service

Financial services like banking are another ideal example of the tertiary sector, which deals with providing financial solutions in the interest of people. This sector includes businesses like stock management firms, banks, insurance firms and other financial enterprises to supervise people's investment as well as monetary flow. An ideal example of financial services in the Indian market is the provision of digital banking service, loans and fixed deposit service by the State Bank of India. Merchant Banking is another ideal example of financial services within the tertiary sector. Firms operating in this tertiary sector cater to both people and businesses to ensure a circulatory system across the operating system.

Media and entertainment

Another essential tertiary sector is media and entertainment, which includes news outlets, television, online series, music and live performances. The media and entertainment industry operates in a manner that charges small fees for providing an entertainment experience for general individuals across a specific location. Some of the job examples within this sector include musicians, lyricists, vocalists, background singers and actors. This sector shows promising growth due to influential demands across the Indian and International markets.

Tourism and Hospitality

The tourism and hospitality sector is also a crucial part of the tertiary sector as it provides services like travel assistance, hotel stays and recreational centres for the general public. The Indian tourism and hospitality sector creates significant employment opportunities with an expected 7.1% growth annually. Examples of roles and responsibilities associated with tourism and hospitality include managers, bartenders, consultants, receptionists, chefs and stewards. Furthermore, digital tourism and hospitality service providers such as MakeMyTrip, Booking.com and OYO also assist in catering to the general population.

Healthcare Services

Healthcare is an essential component of the tertiary sector, which specialises in medical services. The healthcare industry caters to referred patients from primary as well as secondary care in terms of treatment, patient care, transplant and surgeries. The healthcare tertiary sector holds significant value as it is equipped with trained professionals and advanced technologies to improve mental and physical health. Examples of businesses in the Indian Healthcare sector include All India Institute of Medical Science (AIIMS), Fortis Healthcare and Apollo. The healthcare and medical sector contributes to economic growth by keeping people healthy to maintaining the functionality of other sectors.

Importance of the Tertiary Industry

The tertiary Industry is important throughout the world as it streamlines economic growth with the advancement of life quality through its services. It also contributes to GDP growth by supporting the diversification of primary and secondary sector production within the national market. Moreover, the tertiary sector holds social and economic importance because it creates jobs that enhance the financial stability of the national population. Apart from this, the tertiary industry encompasses entrepreneurial and business importance, as it contributes to revenue generation and foreign exchange by providing essential supporting services. Overall, it can be considered that the importance of the tertiary sector is exponential within the Indian market due to its significant assistance in employment growth.

Conclusion

The tertiary industry or service sector deals with service provision to businesses as well as the general population within the operating environment. This sector holds significant importance due to its economic, social and entrepreneurial assistance. There are various sectors associated with the tertiary industry, including healthcare, tourism, hospitality, and finance. Moreover, the tertiary sector supports the operations and functionality of the primary as well as the secondary sector. For a better understanding of the interrelation of primary, secondary and tertiary industry, read the SWIPE blog “Types of Industries”.

FAQs

Question 1: What is the tertiary or service sector in an economy?

The tertiary or service sector is an industry that provides services to businesses and the general population in an economy.

Question 2: What are the types of the tertiary sector?

There are various types of tertiary industry, such as education, public service, media, entertainment, hospital and wellness.

Question 3: Is there any relationship between the primary, secondary and tertiary sectors?

The tertiary sector provides services for the primary and secondary industries. For a detailed understanding of their relationship, read this blog on “Types of Industries”.

Featured Posts

What Is Work Contract

Rule 89 of CGST Rules: Key Points Every Taxpayer Must Know

Charging IGST Instead of CGST+SGST on Zero-Rated Supplies

OIDAR Place of Supply Rules

ICICI Net Banking: Features, Benefits, Services & Login Process

Understanding the Treatment of ITC on Disposal or Transfer of Business

GSTR-3B vs GSTR-2A: ITC Mismatch Clarification

Wood HSN code 4409 and GST rates

Featured Posts

You might also like

Duties of Directors in Company Law Explained

Wooden Furniture: 9403 HSN Code and GST Rate

Yuva Nidhi Scheme: Empowering Young Entrepreneurs