Importance Of Service Sector

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Abstract:- The services sector is the single largest contributor to economic growth and employment. It is widely recognized and deliberated upon that the global importance of service sector in terms of its share in Gross Output has been growing progressively in the economies of the world. The objective of this paper is to make an assessment of the importance of the service sector in indian economy.
The tertiary sector of the economy (also known as the service sector or the service industry) is one of the three economic sectors, the others being the secondary sector (approximately the same as manufacturing) and the primary sector (agriculture, fishing, and extraction such as mining) The service sector consists of the "soft" parts of the economy,
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Sandeep Bansal:- His paper presents economic development has been associated with structural changes in the national economies. On the path of its economicdevelopment, India has reached a level where there is predominance of service sector and it has become the mainstay of the growth process especially over the last ten years the well known sequence of structural transformation from agrarian economy to a predominantly service economy en route industrial economy as noticed in the developed world has not been witnessed in India So, without the growth of agriculture and industry, this sector alone cannot sustain its growth for the long run due to the high backward and forward linkages of agricultural and industrial sector. The gap between income of agriculture and services will also keep on increasing unless growth is accompanied by an increase in employment share of services. The fast-growing sub-sectors, such as, IT have already revealed differentials in earnings, with a few jobs in high-tech activities with very high salaries and benefits, on the one hand, a large mass of low earning jobs in the informal sector on the other. This pattern is attributed to the poor performance of the industrial
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