Role and importance of service sector in indian economy
Answers
Tertiary sector has become important in India because :
(i) Basic services like hospitals, education, post and telegraph, courts, etc. are the responsibility of the government in developing countries.
(ii) Demand for services such as transport, trade, storage will increase with the development of primary and secondary sectors.
(iii) Demand for tourism, shopping, private schools, private hospitals, etc. increases with the increase in the level of income.
(iv) Rapid growth of services sector also benefitted from external demand such as software industry and call centre services.
(v) Liberalisation of financial sector provided an environment for faster growth of financial services.
@skb
Public sector contributes to the economic development of a nation by the following ways :
(i) Public sector provides many essential things at a reasonable cost, which private sector cannot provide.
(ii) The public sector can set up heavy industry which requires a lot of money.
(iii) The purpose of the Public sector is not to earn money, but to benefit the people.
(iv) Public sectors are controlled by the government, provides health and educational facilities