Advertisements
Advertisements
प्रश्न
What are the major factors responsible for the high growth of the service sector?
उत्तर
The major factors that led to the growth of service sectors in India are as follows;
1. High demand for services as final product: India was a virgin market for service sector. So, when service sector started booming due to business outsourcing from the developed countries to India, there was very high demand for these services especially for banking, computer service, advertisement and communication. This high demand in turn led to a high growth rate of service sector.
2. Liberalisation and economic reforms: The growth of Indian service sector is also attributable to the liberalisation and various economic reforms that were initiated in 1991. Due to these reforms, various restrictions on the movement of international finance were minimised. This led to huge inflow of foreign capital, foreign direct investments and outsourcing to India. This encouraged the service sector growth.
3. Structural transformation: Indian economy is experiencing structural transformation that implies shift of economic dependence from primary to tertiary sector. Due to this transformation, there was increased demand of services by other sectors which y boosted the service sector.
4. Advanced technology and growth of IT: The advancements and innovations in the IT sector enabled the use of internet, telecommunication, mobile phone and electronic transactions across different countries. All these contributed to the growth of the service sector in India.
5. 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.
6. Cheap labour and reasonable degree of skill in India: Due to the availability of cheap labour and reasonable degree of skilled man power in India, developed countries found outsourcing to India feasible and profitable. The business outsourcing in itself provides substantial encouragements (like development of human capital that requires services like good coaching centers and reputed institutions, etc.) to the growth of service sector.
APPEARS IN
संबंधित प्रश्न
How is RBI controlling the commercial banks?
What do you understand by devaluation of rupee?
Those public sector undertakings which are making profits should be privatised. Do you agree with this view? Why?
Discuss economic reforms in India in the light of social justice and welfare.
Rate of which tax was reduced as per the tax reforms?
India’s post-1990 economic strategy entailed three important breaks with the past:
- To dismantle the vast network of controls and permits that dominated the economic system.
- To redefine the role of the state as a facilitator of economic transactions and as a neutral regulator rather than the primary provider of goods and services.
- To move away from a regime of import substitution and to integrate fully with the global trading system.
The 1991 reforms unleashed the energies of Indian entrepreneurs and gave untold choices to the consumers and changed the face of the Indian economy. The reform agenda constituted a paradigm shift and has defined the broad contours of economic policymaking for three decades.
Liberalization was adopted as the guiding principle of governance and all governments since 1991, have broadly stuck to that path.
Today we don’t need a paradigm shift. We need to look at individual sectors and see which one of these needs, reforms to create a competitive environment and improve efficiency. The power sector, the financial system, governance structures, and even agricultural marketing need reforms.
Today’s reforms also require much more discussion and consensus-building. The central government needs to work in tandem with state governments and consult different stakeholders impacted by reform decisions. Timing and sequencing are critically important in the new reforms’ agenda.
- According to the given text, ____________ was adopted as the guiding principle of governance and all governments since 1991.
Consider the following statements about Export of cotton Textiles.
- It is shown in the debit side of the current account.
- It reduces the balance of payment deficit.
- It is shown in the credit side of the current account.
Which of the following statements are true?
Identify the correctly matched pair from Column A to that of Column B:
| Column A | Column B |
| 1. Excess Demand | (a) Unsold inventories |
| 2. Revenue and Expenditure Policy of Government | (b) Fiscal policy |
| 3. Moral pressure and suasion | (c) Fiscal policy |
| 4. Correction of Inflationary Gap | (d) Government expenditure on welfare |
Wealth tax is
Which other monetary policy instrument the RBI cannot use?
In the above question 15, if exports change to X = 100, find the net export balance.
Inventory is a ______ concept whereas the change in inventory is a ______ concept.
Which of following is a direct tax?
Which of the following statements is not true regarding the benefit of GST?
Match the items in Column A to those in Column B and choose the correct option:
| Column A | Column B | ||
| 1 | GST | (a) | Indirect Tax |
| 2 | Income Tax | (b) | Burden can be shifted |
| 3 | Fine | (c) | Direct Tax |
| 4 | Tax Receipts | (d) | Capital Receipt |
The government encourages exports to correct excess capacity in the economy. This ma)l lead to:
The Non-tax revenue in the following is ______
