what are the reasons for the …

Tertiary sector is the service sector that provides support to the primary and secondary sectors and to itself. Over the forty years, between 1970 and 1971, and 2010 and 2011, while production in all the three sectors has increased, it has increased the most in the tertiary sector. The tertiary sector is becoming important in India because of the following factors:

1. Basic services: In any country, several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, and insurance companies, are required. These can be considered as basic services. The government has to take responsibility for the provision of these services in a developing country.
2. Development of primary and secondary sector: Demand for services such as transport, trade, storage will increase with the development of primary and secondary sectors. such as transport, trade and storage. The greater the development of the primary and secondary sectors, the more would be the demand for such services.
3. Rise in income levels: Demand for services like eating out, tourism, shopping, private hospitals, private schools and professional training centres increases with the increase in the level of income. This change is quite sharp in cities, especially in big cities.
4. Rise in information technology: Over the past decade or so, certain new services, such as those based on information and communication technology have become important and essential. The production of these services has been rising rapidly. Rapid growth of the services sector also benefitted from external demand such as the software industry and call centre services.
5. Liberalization:  Liberalisation of financial sector provided an environment for faster growth of financial services.
6. Globalization: Due to globalization, people have become aware of new services and activities, and communication because of which the tertiary sector has gained importance.