Why is the 'tertiary sector' becoming important in India? Explain any three reasons.
Highlight any five reasons for the importance of tertiary sector in India.
Importance of the tertiary sector :
i. the tertiary sector provides basic services like public transportation, medical care, electricity, banking, post office, etc under the control of the govt.
ii. the tertiary sector creates a huge area for employment even for uneducated and unskilled workers.
Iii. the tertiary sector distributes the consumer goods to different suppliers
iv. the tertiary sector accounts for most of the national income and per capita income
The tertiary sector refers to those income-generating activities in an economy that help in the development of the primary and secondary sectors. The tertiary sector is also called the service sector because of the support it provides to other sectors of the economy.
Services in the tertiary sector include education, health services, transportation services, banking services, and information technology services. The tertiary sector has witnessed immense growth in the last few decades in India.
The following points explain the rising importance of the tertiary sector :
- Any country requires several services such as those of post and telegraph offices, police stations, hospitals, banks, insurance agencies, transport, defense, courts, etc. Hence, the government has to take the responsibility of providing these services to its citizens.
- Various services developed with the development of agriculture and industries. Some of them include transport, storage, and trade. Demands for such services will only increase with the development of the primary and secondary sectors.
- With a rise in people’s incomes, demands for services such as tourism, retail, schools, private hospitals, etc. also increases. However, these demands are higher in big cities.
- In the past few years, services based on communication technology and information have also increased. There has been a rapid rise in the production of these services.