Tertiary Sector (VSAQs)
Economics-2 | 7. Tertiary Sector – VSAQs:
Welcome to VSAQs in Chapter 7: Tertiary Sector. This page covers the most crucial FAQs for Very Short Answer Questions. Each answer is given in simple English and follows the exam format. This helps you focus on the key concepts and aim for top marks in your final exams.
VSAQ-1: Tertiary Sector (OR) Service Sectors (OR) What is Tertiary Sector?
The tertiary sector, often called the service sector, is a vital part of the economy, particularly in India, where it has become the fastest-growing sector and the largest contributor to the country’s GDP. This sector includes a wide range of services that support other sectors like agriculture (primary) and manufacturing (secondary). Think of it as the backbone that keeps everything running smoothly. For example, it includes transportation services that move goods from factories to markets, banking services that provide loans to businesses, IT services that manage data and technology, and healthcare services that keep people healthy. From hospitality to real estate, the service sector touches every part of our lives and is crucial for economic growth.
VSAQ-2: Infrastructure
Infrastructure refers to the essential systems and structures that make modern life possible. It includes things like roads, bridges, and railways that help people and goods move around, power plants that provide electricity, and communication networks like the internet that connect us to each other. Think of infrastructure as the foundation upon which everything else in the economy is built. Without good infrastructure, it would be much harder for businesses to operate, for people to get to work, or for goods to be delivered on time.
VSAQ-3: Water Transport
Water transport involves using rivers, lakes, canals, and the ocean to move goods and people from one place to another. It’s one of the oldest and most cost-effective ways to transport heavy and bulky items like coal or petroleum. In India, there is a huge potential for inland water transport because of the country’s extensive network of rivers and canals, covering around 5,000 kilometers. The government has been working to develop this sector further by modernizing boats and ships and connecting major rivers. India also has a long coastline with major ports that play a key role in global trade, making water transport essential for the economy.
VSAQ-4: BharatNet
BharatNet is a massive government project aimed at bringing high-speed internet to rural areas across India. The idea is to connect 2.5 lakh gram panchayats (local village councils) using a mix of optical fiber, radio, and satellite technologies. By improving internet access in rural areas, BharatNet hopes to boost economic development, give people better access to education and healthcare, and help small businesses grow by connecting them to the larger market.
VSAQ-5: Commercial Banks
Commercial banks are financial institutions where people deposit their money and take out loans. These banks play a crucial role in the economy by helping individuals and businesses manage their finances. For example, if you want to buy a house, a commercial bank can give you a loan to make that possible. In India, commercial banks are regulated by the Reserve Bank of India (RBI) to ensure that they operate safely and fairly. Over time, the banking sector in India has evolved, with many smaller banks merging to create stronger institutions that can better serve the public.
VSAQ-6: GIC (General Insurance Corporation of India)
The General Insurance Corporation of India (GIC) is a major player in the insurance industry, focusing on reinsurance—a process where multiple insurance companies share the risk of large policies. GIC is dedicated to maintaining high ethical standards and building strong, mutually beneficial relationships with its partners. This ensures that the insurance market remains stable and that customers can trust their insurance providers.
VSAQ-7: LIC (Life Insurance Corporation of India)
The Life Insurance Corporation of India (LIC) is a giant in the insurance sector, committed to securing the financial future of people across the country. LIC provides a variety of insurance products that help individuals save for the future, protect their families, and invest in their well-being. LIC also invests in various sectors to support the country’s growth, while ensuring that insurance coverage is affordable and accessible to everyone, including those in remote areas.
VSAQ-8: Economic Infrastructure
Economic infrastructure is the backbone of the economy, comprising various elements that keep the economy running smoothly. This includes irrigation systems and flood control to support agriculture, energy sources like coal, electricity, and oil to power industries and homes, and a robust banking system to facilitate financial transactions. Additionally, infrastructure in transportation (like railways and roads) and communication (like postal services and telecom networks) ensures that goods, people, and information can move efficiently across the country.
VSAQ-9: R.B.I (Reserve Bank of India)
The Reserve Bank of India (RBI) is the central bank of the country, responsible for regulating and supervising the entire financial system. It issues currency, controls the money supply, and ensures that the economy remains stable. The RBI also acts as the banker to the government, managing its finances and foreign exchange reserves. By carefully controlling the flow of money in the economy, the RBI plays a key role in keeping prices stable and promoting economic growth.