Hi Rohit,
Though the above definitions and the wikipedia link are very helpful, I will try to give a different perspective to it, directly related to automobiles.
In first or second gear, the ratios are large. It means that a smaller gear is moving a relatively larger one. This helps in supplying more torque (i.e. the pulling force). However, the speed (in this case the rpm) will be reduced by the same ratio.
When the vehicle moves at a certain speed, it has its own intertia and does not require so much torque to move. Then we slot in the higher gears (3,4,5 etc.) Here, the small gear is pushing another smaller gear (smaller in compared to Gears 1 or 2). The torque transferred reduces in the ratio of gear size, but the speed increases.
Hope this clarifies your question.
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