Question

Explain the importance of the service sector. Give details Explaination.

Answer 1

Tertiary sector or service sector plays a very significant role and its importance is rising day by day:

 

1.Greater the development of primary sector and secondary sector more would be the demand for Services.

2.Tertiary sector has become the largest producer in India because various kinds of Services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, transport, banks, insurance companies, etc. are required.

3.Even development of agriculture and industry leads to the development of services such as transport, trade and storage, etc.

4.With the rise in income, demand for more services is rising.

For example, eating out in restaurants, tourism, malls and shopping complexes, schools, professional training, etc.

5.New services like Information Technology and outsourcing have become very important for modem day trade and industry.

Unfortunately, the rapid growth of the service sector in India has not yet shown the expected corresponding increase in employment.