Explain some reasons for service sector growth in India.
Answers
Agriculture, manufacturing and service are the main sectors of an economy..
Agriculture is low growth sector which is having so many issues in India, over dependence of monsoon, low rate for agricultural produce, excess labour and below par wages, low mechanisation are some, so it is not a sector that offers high hopes..
Manufacturing also has its set of pdoblems, lower demand or slow down of economy, regulatory bottle necks and constriction, policy flip flops, environmental issues, excessive competition, low margin, cheap imports are some of the issues faced by that sector..
But service and quality of it is essential for all that need to be present closely to the end user..for instance a product that is manufactured in Gurgaon or a agriculture produce in Haryana can be marketed any where in India but take the case of hospital in the service industry, people wants and prefer good hospital as near as them, so there is potential for more organazition in the service sector moreover enhanced income of people, proliferation of internet and awareness of global standards widened the scope of service and this doesn't have many environmental issues like in manufacturing..
The major service sectors are Medical related, communication, e- commerce, retail,food, insurance,transport, hotel, tourism etc.