Reasons for growth of the tertiary sector
- Improved labour productivity. A key factor behind tertiarisation is improved labour productivity.
- Globalisation.
- Income elasticity of demand.
- Rising real incomes/ wages.
- More leisure time.
- Technology.
- Related.
Why is service sector important for the growth of economy?
The development of service sector promotes and adds value to the agricultural sector. Service sector provides finance, marketing, transport, insurance for the development of the agriculture sector. Service sector can play a major role in reducing inequalities in the distribution of income in the economy.
What are the major factors responsible for the high growth of the service sector?
Increased volume of trade: Low tariff and non-tariff barriers on imports by India are also responsible for high growth rate of service sector. The foreign trade reforms enabled the domestic products to interact and compete in the international markets.
Why tertiary sector is becoming so important?
Tertiary sector has become important in India because : (ii) Demand for services such as transport, trade, storage will increase with the development of primary and secondary sectors. (iii) Demand for tourism, shopping, private schools, private hospitals, etc. increases with the increase in the level of income.
What are the major factors responsible for the high growth of the service sector 3m?
The major factors responsible for the high growth of the service sector are as follows (i) Rise in Income Rise in per capita Income is an Indicator of increase in general affluence levels. With rise in income people start demanding services which . can make their lives more comfortable.
How service sector is growing rapidly under free market regime?
Communication services registered the highest growth rates during this period, with an average growth rate of 26.7%. 8 Other subsectors, such as trade, hotels and restaurants, construction, financing, insurance, real estate and business services, have also grown rapidly in recent years.
What are the types of service sector?
These include IT and ITeS, Tourism and Hospitality Services, Medical Value Travel, Transport and Logistics Services, Accounting and Finance Services, Audio Visual Services, Legal Services, Communication Services, Construction and Related Engineering Services, Environmental Services, Financial Services and Education …
What is the rising importance of tertiary sector?
1)Tertiary sectors composes almost 50% of Indian economy. 2)this sector accounts for most of the national & PCI. 3) it creates huge employment even for the uneducated and unskilled workers. 4) it is responsible to distribute its services and goods to different consumers.
