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Give four reasons for the rising importance of tertiary sector in India.

The tertiary sector has emerged as the largest producing sector in India replacing the primary sector.

Why is the tertiary sector becoming so important in India? There could be several reasons.

  • First, in any country several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, etc. are required. These can be considered basic services.
  • Second, the development of agriculture and industry leads to the development of services such as transport, trade, storage, and the like, as we have already seen. The greater the development of the primary and secondary sectors, the more would be the demand for such services.
  • Third, as income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools, professional training etc.
  • Fourth, over the past decade or so, certain new services such as those based on information and communication technology have become important and essential. The production of these services has been rising rapidly.

Tame the 5-Marker

economic activities sectors economic advancement economic development economic nationalism economy in india fresh primary sector secondary sector tertiary sector
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