Economics (NCERT) Notes

2.1 Sectors of the Indian Economy

Development of Service Sector


• Several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, etc. are the basic services, which are necessary for development. Government often provide these services.


• The development of agriculture and industry leads to the development of services such as transport, trade, storage and the like.


• As income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools, professional training etc.


• Information technology have grown tremendously and becoming a way of life.


 


Inequality of Wages in Service Sector


• Service sector in India employs many different kinds of people.


• A limited number of services employ highly skilled and educated workers.


• Most people engaged in services such as small shopkeepers are poorly paid.


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