Question

What are the factors responsible for the high growth of the service sector?

पर्याय

• High demand for services as final product

• Liberalisation and economic reforms

• Structural transformation

• All of the above

Answer 1

All of the above

Explanation:

The following are the important elements that contributed to India's rise in the service sector:

1. High demand for services as the final product:
   India was a new market for the service industry. As a result of business outsourcing from wealthy countries to developing countries, the service sector began to expand. These services were in high demand in India, particularly in banking, computer services, advertising, and communication. Due to the great demand in tum, the service sector grew at a rapid pace.
2. Liberalisation and economic reforms:
   The liberalisation and many economic reforms that began in 1991 also contributed to the growth of the Indian service industry. Various constraints on the movement of international funds were reduced as a result of these reforms. As a result, India has seen a massive influx of foreign cash, direct investments, and outsourcing. This aided the expansion of the service industry.
3. Structural transformation:
   The Indian economy is undergoing structural change, implying a shift in economic dependency from basic to tertiary sectors. Other sectors expanded their need for services as a result of this shift, boosting Y in the service sector.