Overview Of The Service Sector In India

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A. Overview of the service sector and its contribution in the economy The service sector is one of the three traditional economic sectors, known as tertiary sector. The other two are the primary sector and the secondary sector. It’s the third economic sector which provides a service and is in an imaginary form rather than a physical form. Actions that are taken in account as services contain retail, banks, hotels, real estate, education, health, social work, computer services, recreation, media, communications, electricity, gas and water supply. The service sector is a vital part of the economy. In India, there has been a huge development in service sector commerce which made up 55 percent of India's GDP (gross domestic product) in 2006-07.…show more content…
Overview of the industry and its contribution in the service sector A bank is a financial institution that provides banking and other monetary services to their customers. A bank is generally appreciated as an institution which provides crucial banking services such as obtaining deposits and granting loans. There are also non-banking organizations that provide certain banking services that are not apt/suitable to the legal definition of a bank. Banks are a subset of the financial services industry. A banking system also accredited as a system provided by the bank which pitches cash management services for customers, narrating the transactions of their accounts and portfolios, through out the day. The banking system in India, should not only be hassle free but it should be able to equip the new challenges posed by the technology and any other external and internal factors. For the past three decades, India’s banking system has several outstanding achievements to its credit. The Banks are the main participants of the financial system in India. The Banking sector offers several facilities and opportunities to their customers. All the banks safeguard the money and valuables and provide loans, credit, and payment services, such as checking accounts, money orders, and cashier’s cheques. The banks also offer investment and insurance products. As a variety of models for cooperation and integration among finance industries have emerged, some of the traditional distinctions between…show more content…
Its position after economic reforms of 1992 has grown only manifolds to the extent that today it contributes to over 6% of India’s GDP. It is the dynamic growth of financial services sector during post restructuring age that has assisted it in assuming such an important place in Indian economy. Unlike in past when financial services sector mainly constituted of banking sector, today financial sector has extended its reach and include sectors like insurance services, non-banking financial services, co-operatives, retirement funds, mutual funds, capital market

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