Question

Justify the tremendous growth of the Service Sector in developed and developing countries than the manufacturing sector? Explain giving suitable examples.

Answer 1

• Highly sophisticated machines and technology are available now. Manufacturing sector which can be operated and controlled by a few people, due to which many people earlier employed in the manufacturing sector are seeking jobs in the service sector.
• Most of the manufacturing companies need a large number of people in non direct production sector like clerical, managerial, advertising, sales, legal and financial experts which have a higher income than the people employed in direct production.
• The service sector is growing in importance because more and more females are seeking employment in this sector which provides a better working environment and high per capita income than in the manufacturing sector.
• With growing income, people are demanding more services like medical facilities, entertainment, hospitality industries, travel and tourism, etc. As a result of which the service sector has drastically expanded in all directions. It is a good thing that many people get employment through these industries. For example, if tourism increases, then people in the hospitality industry get employment.
• Growth in Service sector indicates a growth in GDP. Hence, the government makes all efforts to uplift the service sector by providing provident funds, gratuity , pension, etc to the employees. This also increases the per capita income of the people.