Question

What are the major factors responsible for the high growth of the service sector?

Answer 1

hi there,
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The major factors responsible for high growth of the service sector are as under :
(i) Development of means of transport and com-munication due to globalization.
(ii) Development of banking and insurance sector
due to the policy of privatization.
(iii) Expenditure on the development of infrastructure.
(iv) Investment in different service sectors due to
indigenous and foreign institutional investment.
(v) Rapid industrialisation.
(vi) Development of agriculture due to Green Revolution

Answer 2

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$\Huge\green{{\mathcal{ THE\: FACTORS\: ARE :-}}}$

➽ Reforms introduced in 1991, removes various restriction on the movement of international finance which led to huge inflow of foreign capital,foreign direct investments and Outsourcing to India.This encouraged the service sector growth .

➽ Availability of cheap labour and skilled labour at lower wage rate.

➽ The revolution in information Technology field in India has also played a major role in the growth of the service sector .

➽ Indian economy is experiencing structural transformation that implies shift of economic dependence from primary to tertiary Sector.