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Preeti Dabral 3 years ago
The reasons why this sector is gaining importance can be summed up in the following points:
- Service sector can be considered as the lifeline for other two sectors of the Indian economy as they help in the functioning of both primary and secondary sectors. Services like banking, transportation, insurance are required for the successful functioning of other two sectors.
- The development of agriculture and industry leads to the development of services such as trade, transport, storage, etc. Greater the development of the primary and secondary sectors more would be the demand for such services.
- Rise in income levels which has resulted in increasing demand for services like eating joints, private hospitals, shopping, tourism, professional training etc. This change is quite sharp in cities, especially in big cities.
- Over the past decade or so, certain new services, such as those based on information and communication technology have become important and essential.
- Government policy of privatisation has also led to the growth of the service sector.
- A large number of workers are engaged in services, such as small shopkeepers, repair persons, transport persons, etc.
- However, the entire sector has not grown. Large numbers of people engaged as construction workers, maid, peons, small shopkeepers, etc., do not find any change in their life.
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