Question

Why are services becoming important? Give three reasons.

Explain any five reasons for the increasing importance of service.

Answer 1

1. Economic Planning: The Government of India launched five-year plans in 1951 to achieve rapid growth in the country. Industrialisation requires industrial infrastructure (transport, communication, power, insurance, banking, finance, etc.) and social infrastructure (education, medical facilities, community services, etc.). Therefore, these services have expanded rapidly in the country.
2. Increasing Urbanisation: Urbanisation has been another cause of the expansion of the service sector in India. The population has been shifting from rural to urban areas, and urbanisation leads to a rise in demand for infrastructure services such as communications, public utilities, and distribution services.
3. Media: Television, the internet, and other media have spurred tourism. Modern technology has made business more comfortable. Tourism, in turn, has promoted all types of services, such as hotels, restaurants, travel agents, amusement parks, event management, etc. Expanding world trade has also had a demonstration effect.
4. Rise in Per Capita Income: Growing per capita income has led to demand for new and better services. Interior decoration, garden care, beauty parlours, slimming centres, health clubs, etc., are examples of these services. More leisure time creates demand for recreation and entertainment services such as water parks, etc.
5. Women Workforce: The higher percentage of women in the workforce has created a demand for babysitting, household domestic help, and other personal services.
6. Greater Life Expectancy: The increase in life span has led to greater demand for health care and related services. Greater concern for ecology and resource scarcity requires time sharing, pollution control, and other services.