Explain the growing importance of service sector in an economy giving five points
Answers
Explanation:
Tertiary sector in India has been growing rapidly for a number of reasons:
(i) In a developing country, the government has to take the responsibility for the provision of basic services for example, hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, etc.
(ii) 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.
(iii) As income levels rise, certain sections of people start demanding many more services, such as eating out, tourism, shopping, private hospitals; private schools, professional training, etc. This change was quite sharp in cities, especially in big cities.
(iv) Over the past decade or so, certain new services, such as those based on information and communication technology have become important and essential.
(v) Government policy of privatisation has also led to growth of this sector.
After, the Primary and Secondary sectors of the country. The service sector is one of the growing and fastest developing sectors in the economy.
EXPLANATION-
Service sectors including Banking, Transportation, Warehousing, Communications as the pillar of the sector. This whole sector helps to bring uniformity and balanced standards among the other two sectors of society.
Important of the service sector in a growing economy -
• Transportation facilities- The service sector of the country helps to bring uniformity through connectivity and channelizing of the goods, services, and society.
• Works as an aid to trade - It works as strong backbone support to the other two sectors of the society by providing the facilities of warehousing, Communications, transportation, etc.
• Works as an agent - The service sector has been dramatically improved that nowadays, they work as agents for the organization to bring efficiency and effectiveness. Example- Banking.
•Outsourcing- The division of the professional works has been brought in working like advertisement, broadcasting, and Awareness to society.
• Wider Work scope- The service sector has wider areas of work to be done in a small span of the work. This truly helps in upgrading the society through income generation and growth.
Conclusion-
These are the way how the service sector has given advantages to the economy of the country.
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