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Scholars argue that the service sector should not be considered as an engine of growth whereas India and Pakistan have raised their share of output mainly in this sector only. What do you think?

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Question

Scholars argue that the service sector should not be considered as an engine of growth whereas India and Pakistan have raised their share of output mainly in this sector only. What do you think?

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Solution

  1. I partly agree with this view. The service sector is an important engine of growth because it contributes significantly to national income and creates employment in areas such as IT, banking, transport, communication, education and healthcare.
  2. However, depending mainly on the service sector is not enough. Agriculture and manufacturing are also essential because they provide food, raw materials, large-scale employment and support overall economic stability.
  3. In India and Pakistan, the share of the service sector has increased, but a large part of the population still depends on agriculture, and many workers need jobs that can be created through manufacturing and industry.

Hence, the service sector is important, but balanced development requires growth in agriculture, manufacturing and services together. A country should not depend on only one sector for long-term development.

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Chapter 8: Comparative Development Experiences of India and Its Neighbours - Intext Question [Page 141]

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NCERT Economics Indian Economic Development [English] Class 12
Chapter 8 Comparative Development Experiences of India and Its Neighbours
Intext Question | Q 4. | Page 141
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