What is the Service Sector?

The majority of India’s population is engaged in the primary sector which in turn is the main reason for underemployment in the country. Though in the last couple of years, manufacturing has been a great focus, not much growth has been seen in the secondary sector (including heavy manufacturing, light manufacturing, energy-producing, food processing, etc.) due to a lack of infrastructure. So in order to quickly absorb this underemployed population, there is a need to shift to the tertiary sector.

The tertiary sector also known as the service sector involves a variety of things under its umbrella. Some of these are health and welfare, tourism, leisure, and recreation activities as well as retailing and sales of goods to the people. In the past six years, the service sector has undergone a great evolution which in turn has given it the independent status of the productive sector of the country. Moreover, this sector also provides a major impact on foreign exchange and thus contributes greatly to the modern economic development of the country.

Let’s discuss the advantages, significance, and contributions of the services sector to India’s economy:

The economic development of any country is directly dependent on the advancement and progress of the three sectors of the economy viz. primary sector, secondary sector, and tertiary sector. The primary sector of an economy makes direct use of natural resources that are involved in the production and extraction of raw materials from agriculture, fishing, forestry, mining, dairy, etc., and the secondary sector also known as the industrial sector is associated with the activities which involve the conversion of raw material into usable products.