Composition & Contribution of Service Sector in India

The service sector in every region of the world comprises the soft parts of the frugality like government, insurance, education, banking, tourism, retail, and social services. Nowadays, various factors contribute to the growth of the service sector in India and nearly 60 % of the Indian GDP. Furthermore, the service sector is also called the tertiary sector.

The role of the services sector in India is considered very important and vital, serving nearly 60 percent contribution directly to the GDP (Gross Domestic Product) in recent years and has made quick progress during the recent decade and emerged as the leading and one of the rapid-growing sectors of the economy. Moreover, the services sector of India also fascinated important overseas investment flows, making a significant contribution to providing large-scale jobs and export goods.

India’s  service sector is further divided into components of the service sector, Economic and social service, which undertook a wide variation of events such as trade, restaurants, hotels transport, communication, and storage, financing, real estate, insurance, business services, social and personal services, community, and services related to construction.

Components of the Service Sector

Components of Service Sector, Economic Service, and Social Service:

Economic Services:

Economic the sector is known as one of the components of the service sector, which is as follows:

• Transport, Communication, and Storage:

There are several kinds of transport, such as road transport, rail transport, water transport, and air transport. Indian railway arrangement is the first in all over Asia and fourth position in the world ranking following the USA, Canada, and Russia. Several storage facilities are offered via both the private and government service sectors. CWC (Central Warehousing Corporation), the FCI (Food Corporation of India), etc., are some of the government-owned units which are providing storage services.

• Trade, Tourism, and Hotels:

The trading system and trade service consist of both foreign and domestic trades. Foreign is basically a trade in which business is done between two nations that include both imports and exports. While on the other hand, domestic trade is defined as the trade within the country between different cities and states. There are numerous public sectors, such as STC (State Trading Corporation), MMTC (Minerals and Metals Trading Corporation), and SEZ (Special Economic Zones), etc., providing satisfactory support to raise the foreign vocation in India.

Nowadays, some private sector services are also participating in expanding international trade.

• Insurance and Banking Service:

Expansion of banking services is considered the key indicator of economic development. Currently, In India, the banking system is available in all parts of the country for the development of various other sectors. Banking service is the initial required service, and the role of service becomes important and plays a vital role.

In India, apart from the RBI (Reserve Bank of India), all the other banks with both Private and public sector banks are performing a true part of the nation’s growth. Public sector banks such as PNB, UCO, SBI, UBI Bank, etc., and privately-owned banks are as follows HDFC, AXIS, HSBC Bank, etc. Moreover, some public insurance organizations, such as LIC, GIC, etc., and privately-owned insurance organizations are as follows: Tata AIG, Birla Sun Life, etc.

Social Service:

Social services are also known as the component of the service sector which serves services like education, health, and administration.

• Education:

After the independence of India, education service has grown enormously. Universal education services have risen in good amounts. There is a rapid increase in the count of middle, primary, high, and higher secondary colleges and schools. Moreover, professional and technical education organizations are also growing rapidly. Business schools, medical colleges, engineering colleges, schools, etc., are also rising quickly in India. All of these have enlarged the customary education system in India.

• Health:

Health is the most important component of the service sector of India. The health provision contains the number of dispensaries, hospitals, primary health services, and community health centers, number of nurses, doctors, and beds in hospitals sideways with the count of doctors per 1000 people. Both public and private service sectors are working together to advance the healthcare services in rural and urban areas of India.

• Administration:

In India, the administrative facility has also enlarged at a rapid stride. After independence, offices of Block Development Office (BDO), District Magistrate (DM), Indian Administrative Service (IAS), Indian Police Service (IPS), Indian Forest Service (IFS), and Judicial Courts have improved to function smoothly in the working of civil services of India.

Conclusion

In this article, it is concluded how the service sector of a nation can increase a country’s development and also about the role of the service sector and how it contributes to the Indian economy.

Which can be understood by the components of the service sector, that is economical service and social services.