Main reasons for the growth of the service sector in India:
In recent times, the service sector in India is increasing at a very rapid pace. After liberalization in 1991, the contribution of the services sector continuously increases in the growth of our economy. However, agriculture continues to dominate the Indian economy. The service sector in India is growing not only in volume but also in sophistication and complexity. The growth of the service sector in India is the result of the combination of several reasons that are:
Increasing influx (wealth):
Here, with the growing wealth, there has been an increase in the demand for those services, which customers used to perform on their own. For example, the service provided by the gardener, the servants, the driver of the car, etc.
1. More free time (free time): This factor has led to an increase in entertainment-related services, due to the increase in free time in the lives of people today. For example, the tourism industry has grown due to the greater amount of free time available to people.
2. Longer life expectancy (hope): With the increase in the average life of people, there has been an increase in service related to the field of medical care, for example, medical services, a pathology laboratory, nursing homes elderly. Health care services, etc.
3. High production complexity: With the complexity of production, there is an increase in services that indirectly support the maintenance of these complex products. For example, air conditioning, cars, computers, and other complex products require service every six months.
4. A higher percentage of working women: Over time, there has been an increase in working women. This has indirectly led to an increase in the growth of services such as domestic employees, nannies, etc.
5. Increase in the complexity of life: This has led to an increase in the services of the marriage agency, legal service, tax advisors, placement services, etc.
6. Increasing the number of new products: There are certain products that, if invented, will lead to growth in the service sector. The computer that was the invention of the 21st century has to lead to the software industry, which is totally a sieve industry.
Therefore, the factors mentioned above are responsible for the increase in the growth of the service sector.
Types of services:
1. Commercial services: The first type of service is business services. The most basic definition would be services that support the daily operation and activity of any business, but it is not a commodity. Take for example IT services. At this time, each business will require a technological configuration. People who provide IT support to a company are providing a service in exchange for consideration.
There are other similar services that any commercial company may need for the proper functioning and management of its activities. Some of these services are banking, storage, insurance, communication, transportation, etc.
2. Personal services: Personal services are commercial activities that are provided to people according to their individualistic needs. The service here is extremely personalized for the client. Therefore, there can be no uniformity in services. The service provider will modify its service according to the personal needs of each client.
Some examples of personal services are catering, hotel and accommodation, medicine, any kind of artistic effort (such as painting, sculpting, etc.). As you will notice, all these services satisfy the personal needs of the clients.
3. Social services: And when we talk about types of services, we get to social services. These are
Essential public services. They are provided by the government or other nonprofit organizations. These services aim to achieve social equality in society by providing backward sections with the help they need. The service is not provided for profit but as a social cause. Social services include services in education, sanitation, medical facilities, housing, etc.
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