Question

why are service sector activities becoming important

Answer 1

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.

Answer 2

the first economic sector ,the primary sector covers the, farming ,mining and agricultural business activities in the economy. The secondary sector covers manufacturing and business activities that facilitate the manufacture of tangible goods.
For all this to develop there is a very urgent need of service like transportation communication and Finance.
Development of the service sector results in the development of the other two sectors so we can say that all the sectors are interdependent on each other.
Thus service sector activities are becoming important