Tertiary Sector Service sector overview and importance explanation of service sector

1. SERVICE SECTOR
OVERVIEWAND IMPORTANCE

2. DEFINITION OF SERVICE SECTOR:-
• The tertiary sector of the economy, generally known as the service sector, is the third of the three economic sectors in the three-sector model. The others are
the primary sectorand the secondary sector.
• The tertiary sector consists of the provisionof servicesinsteadof end products.
• Services (also known as "intangible goods") include attention, advice, access, experience and affective labour. The production of information has been long
regarded as a service, but some economists now attribute it to a fourth sector, called the quaternarysector.
• Provisionof servicesto other businessesas well as to finalconsumersis also called as service sector.
• India’s services sector covers a wide variety of activities such as trade, hoteland restaurants,transport,storage and communication, financing,insurance, real
estate, businessservices,community, socialand personalservices, and otherservices.
•

4. CONT.……
• The services accounts for around 55 percentof total size of the economy, about 38 percentof totalexportsand two-
thirdsof totalFDIinflows into India.
• Services sector has been the largest recipient of FDI in India with inflow of US$83.14billionbetween April 2000 and
June 2020.
• NITI Aayog in partnership with the Institute of Competitiveness released the Export Preparedness Index (EPI) report
2020- India’s merchandise exports have witnessed growth from USD 275.9 billion in 2016-17 to USD 331.0billionin
2019-20.
• it contributes nearly 30 percentof the total employement.

7. IMPORTANCE OF SERVICE SECTOR
• CONTRIBUTION TO GDP :-
The share of service sector in India’s GDP which are constituted by hotels , trade , transport , real estate
and many others excluding construction constitute increased GDP from 28.5 per cent in 1950-51 to 51.3
per cent on 2013-14 but the share at factor cost increased from 30.5 percent in 1950-51 to 55 per cent in
2011-12.
• HORIZONTALLY HIGHER SHARE OF SERVICES IN GDSP:-
Service sector had contributed enormously to the GDP of various states and union territories. TN , WB
,Maharashtra, Karnataka and many other states where the share of service sector is higher than the
contribution to Indian economy . Chandigarh and Delhi topped the list with first and second .
• FDI INFLOW:-
Service sector is one of the major contributor of Foreign Direct Investment. The total share of service
sector from the cumulative share from hotels, trading, information, and others constitute around 58.4 per
cent.

8. • EMPLOYEMENT GENERATION:-
Though the Primary Sector has been a major contributor to employment in India but the
employment given by the service sector is increasing these days. According to NSSO , in rural area
if we take 100 people 679 are employed in agriculture , 241 in service sector and remaining in
secondary sector. In Urban areas out of 1000 people 683 are employed in service sector , 242 in
primary sector and remaining in secondary sector. Between 1993-94 and 2010-11the share of
employement in service sector increased from19.7 per cent to 25.4 per cent.
• CONTRIBUTION TOWARDS HUMAN DEVELOPMENT:-
Service sector has a lot of contribution towards human development of the country . Service
sector has been rendering some valuable services , health services , education facilities , skill
development , health tourism , sports ,etc….which are responsible for human empowerment and
improvement in quality of life.
• CONTRIBUTION TO DEVELOPMENT OF INFRASTRUCTURE AND COMMUNICATION:-
It played an important role in developing expanding and management of infrastructure with a
special emphasis on development of transport and communication services.
• CONTRIBUTION TOWARDS THEGROWTH OF IT AND ITes

9. THE END