Which of the following is a service industry?

Step 1: Analyze the question The question asks which option is a service industry. So we need to separate industries that provide services from those that make or extract physical goods.

Step 2: Explain the concept Industries are grouped into three main sectors:

• Primary industries extract raw materials from nature (farming, fishing, mining, lumbering).
• Secondary industries (manufacturing) turn raw materials into finished or semi-finished goods (food processing, cement, textiles, pharmaceuticals).
• Tertiary industries (service) do not produce physical goods. They provide services to people and businesses (banking, insurance, transport, trade, education, health care, tourism, communication).

Step 3: Check each option

• A. Banking industry: Provides financial services such as savings, loans, and money transfers. This is a service (tertiary) industry.
• B. Food processing plant: Converts raw agricultural produce into packaged foods. This is manufacturing (secondary).
• C. Cement factory: Makes cement from limestone and other materials. This is manufacturing (secondary).
• D. Pharmaceutical industry: Manufactures drugs and medicines. This is manufacturing (secondary).

Step 4: Answer Only banking provides an intangible service rather than a manufactured product, so the correct option is A. Banking industry.

Exam tip: Ask yourself, "Does this industry make a physical product?" If yes, it is probably secondary (manufacturing). If it offers help, advice, or a facility, such as banking, insurance, transport, or teaching, it is a service industry. Think "Tertiary = Treating customers."