9 Most VSAQ’s of Tertiary Sector Chapter in Inter 2nd Year Commerce (TS/AP)

2 Marks

VSAQ-1 : Tertiary sector (OR) Service Sectors. (OR) What is Tertiary sector?

The tertiary sector, also known as the service sector, is the third major sector of the economy. In India, it is the fastest-growing sector with the largest share in GDP. This sector provides supportive services to both the primary and secondary sectors. Some of the services encompassed by the tertiary sector in India include trade, hospitality services, transport, communication, storage, real estate, financial services, banking and insurance, business, IT, consultancy services, defense, judiciary, police, health, education, and more.

VSAQ-2 : Infrastructure.

Infrastructure refers to essential systems and facilities supporting economic (transportation, energy, communication) and social (education, healthcare, sanitation) activities.

VSAQ-3 : Water transport.

Water transport involves the use of lakes, rivers, canals, and shipping to connect various regions, making it a cost-effective and eco-friendly mode of transportation. In India, there’s significant potential for inland water transport, with rivers and canals spanning 5,000 km. The five-year plans have aimed to develop this sector, modernize vessels, and integrate major rivers. Shipping accounts for 29% of the overall transport sector and is crucial for transporting bulk goods like coal and petroleum. India boasts a 7,156 km-long coastline with 13 major ports and 200 non-major ports.

VSAQ-4 : What is BharatNet?

BharatNet is a significant government initiative designed to offer broadband connectivity to 2.5 lakh gram panchayats (rural local government bodies) across India. To achieve this objective, the program employs a blend of optical fiber, radio, and satellite communication technologies. This infrastructure development project is a critical step in enhancing digital access and connectivity in rural areas, ultimately fostering economic development and access to various online services.

VSAQ-5 : Commercial banks.

Commercial banks are financial institutions primarily involved in accepting deposits from the public and extending loans to individuals and businesses. In India, these banks are regulated by the Reserve Bank of India (RBI). Over the years, the banking sector in India has witnessed consolidation and restructuring, leading to a reduction in the number of commercial banks. As of 2007, there were 172 commercial banks, with 27 of them operating in the public sector. This evolution in the banking sector has been crucial for the nation’s financial stability and development.

VSAQ-6 : GIC.

The General Insurance Corporation of India (GIC) is a key player in the insurance industry with a focus on reinsurance and providing solutions. GIC is committed to upholding business ethics, ensuring fair practices, and nurturing mutually beneficial relationships with its business partners. This institution plays a pivotal role in the insurance and reinsurance sector in India.

VSAQ-7 : LIC (OR) Life Insurance Corporation (LIC).

The Life Insurance Corporation (LIC) is dedicated to improving people’s standard of living through financial security. LIC’s core objectives encompass safeguarding policyholders’ funds, presenting appealing savings alternatives, promoting the welfare of both investors and society through strategic investments, extending affordable insurance coverage to underserved regions, and maintaining operational efficiency while preserving the interests of investors. As a prominent player in the insurance sector, LIC plays a vital role in securing the financial futures of individuals and families across India.

VSAQ-8 : Economic Infrastructure.

Economic infrastructure is a multifaceted component of the economy, encompassing critical aspects such as:

  1. Irrigation and flood control for agricultural sustainability.
  2. Energy sources like coal, electricity, and oil that fuel industrial and domestic activities.
  3. Banking, financial services, and insurance to facilitate economic transactions and manage risk.
  4. Advancements in science and technology that drive innovation and productivity.
  5. Transportation networks including railways, roads, shipping, and civil aviation for the movement of goods and people.
  6. Communication systems comprising postal services and telecommunications to facilitate information exchange and connectivity.

VSAQ-9 : R.B.I (OR) Write a note on RBI (Reserve Bank of India).

The Reserve Bank of India (RBI) is India’s central bank and monetary authority. It serves as the regulator and supervisor of the financial system, issues currency, and manages monetary policies to ensure price stability and economic growth. Additionally, RBI acts as the banker to the government, controls credit flow in the economy, and safeguards foreign exchange reserves. It plays a pivotal role in India’s financial and economic stability.