Question

is the service sector actually growing ? answer in long ( 5 marks )

Answer 1

India's service sector has caught the world's attention. The service sector in India is growing fast. Services overall have grown at a rate of 6% since 1994. In contrast, manufacturing presence in GDP has remained virtually unchanged since 1970. Manufacturing has grown to become only 22% of the GDP from 15% in the early 1960s. Throughout the 1990s, business services grew on average by 20%.

Answer 2

Answer:

Tertiary sector is growing rapidly because:

(i) India’s economy is growing fast. Several services like hospital, educational institutions,post, telegraph, police, courts, municipality, transport, banks, insurance etc are needed.

(ii) Development of agriculture and industry lead to the development of services such as transport, trade, storage etc, so these would be in greater demand.

(iii) As income level increases certain sections of people start demanding many more services like eating out, tourism, shopping, private hospital etc.

(iv) Certain new services have emerged like information and communication technology which have become important.