Question

why is service sector gaining importance in the indian economy

Answer 1

(i) Service sector in India employs many different kinds of people. At one end there are a limited number of services that employ highly skilled and educated workers, such as managers, lawyers, accountants, etc.

(ii) At the other end, there are a very large number of workers engaged in services, such as small shopkeepers, repair persons, transport persons. These people barely manage to earn a living and yet perform these services.

(iii) There is no alternative opportunity for them. Only a part of this sector is growing in importance.