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Yajnesh

Jogi Mathew

Service Management

31 July 2020

Role Of Service Sector In An Economy

In globalized time the service sector is growing and can produce business and pay at large scale

levels as well as a small scale level. The monetary advancement can be made increasingly

comprehensive by administration division extension at the grass-root level, which at long last

leads to economic turn of events.

The advancement of the service sector prompts the expansion of the essential and auxiliary

parts. The improvement of the administration segment elevates and increases the value of the

horticultural part. Administration division gives an account, showcasing, transport, protection

for the improvement of the agribusiness area. The extension of administration division

exercises helps the auxiliary part exercises also. The administration segment not just gives

money, promoting, and transport to the modern exercises, yet additionally causes interest for

the merchandise produced by the segment. Consequently, the current subject is picked for an

in-depth analysis.

The service sector can assume a fundamental job in advancing equalization territorial

development. Service sector activities can be built up anyplace in the retrogressive areas.

Which would prompt the fair development in the nation?

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Statistics :

“The Indian economy has contributed to the services sector of about 55.2 percent share in

G.D.P it is growing by 10 percent annually, contributing to the total employment, a high share in

foreign direct investment and one-third of total exports and recording very fast at 27.4 percent

in export growth of the first half of 2010-11. While the latest available data has been taken

from national and international sources.”

Illustration :

The service sector provides finance, transport, marketing, insurance for the development of the

agriculture sector. The expansion of service sector activities boosts the secondary sector

activities as well. The service sector can play a major role in reducing inequalities in the

distribution of income in the economy.

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A developing country like India has an abundant labor force in the capital. so, the service sector

can provide employment opportunities with minimum capital investment. The service sector

can play a serious role in reducing inequalities within the distribution of income within the

economy. Service sector activities may be founded by poor people with minimum capital

investment resulting in the economic empowerment of poor people and reduce inequalities

within the distribution of income.

At present India is encountering numerous socio-economic problems thanks to lack of

economic opportunities. By expanding service sector activities, the socio-economics problems

may be resolved. During 2004-05 about 37 percent of the Indian population is living below the

personal income (Sridhar, 2009) they will be supplied with employment and income within the

service sector and lift them above the poverty level. there's a scope in expanding the demand

for the service sector by the burgeoning Indian social class, through which employment and

income will be generated for the poor people of India.

The service sector can contribute to the redressing of the balance of payment problems. the

rise within the export of services can earn more interchange and reduce the balance of

payment deficit.

Reference :

https://www.ukessays.com/essays/economics/role-service-sector-economic-

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