Service Sector in India

The service sector of India is the most popular and highly developing and growing sector of India which has the Highest labor productivity. India has the fastest growing service sector in the whole world and India contributes about 66% to the Indian GDP. However, the Employment rate in the service sector is still less to some extent. The government of India is planning to take necessary steps through which they can provide a large amount of Employment in the service sector. The emergence of the service sector was prominent in the introduction and establishment of the globalization process in India. The service sector includes services like, banking and finance, IT and Technology, energy sector, education, logistics, export and import, Media, health care, telecommunication, storage and communication, hotel Industries, legal and law industry, business services, etc. all these are parts of the service sector. The service sector provides the maximum amount of economic profit to the country. 

What is a Service Sector? 

A service sector is a sector that provides a variety of services to the people. In simple words, a service sector is a medium of connection between the primary sector and the secondary sector. The other name for the service sector is the tertiary sector. The services like banking, Information Technology, telecommunication, business, legal industry, storage and communication, education, healthcare, etc are some services offered by the service sector. 

Service Sector in India 

The service sector in India is the fastest growing service sector in the whole world. And this sector provides a good amount of Employment to the citizens of India. The service sector of India shares almost 66% of the Indian GDP. Not only this, for the past few years the service sector has contributed to the development of the Indian Economy to a large extent. There are lots of departments in the service sector that are responsible for the rise in the economic development of India. Those are firstly the Information Technology sector, then IT associated services, restaurant and hotels, Telecommunication, Business sector, financial services, and Community services. Among these, the business services are the most important types of the sector under the service sector. 

Business Services 

Business services are the most important part of service sectors. For quite a few years a lot of start-up companies have emerged in India and have contributed largely to Indian GDP as well as in providing Employment among the citizens of the country. It has been observed that the business services have grown 82.4 percent in India as compared to before. Business services have played a major role in the growth of the Indian economy and service sector in India. New startups like Mamaearth, boat, lenskart, Nykaa, and many more are a few businesses that have grown up over the years and have contributed largely to the development of the Indian Economy. Popular and successful businesses like this have given rise to the emergence of programs like skill India, Digital India, Startup India and Make in India. Now India is focussing more on investing in start-up Companies like this rather than exporting or investing in the same things from foreign companies. 

Finance Industry 

Just like the business industry the finance industry also is a very important part of the service sector and it also plays an important role in the economic development of India. A lot of economic development depends directly on the financial industry of the country. The finance sector mainly comprises activities related to finance, banking and insurance. To start a new business investment, Money or finance play a vital role in this case. The main work of the financial industry is to offer and provide financial services to companies and people who need them. The Reserve Bank of India has introduced many reforms and regulations through which the Indian Economy can receive major Developments. The RBI, the commercial banks, non-banking financial companies, insurance companies, pension funds, mutual funds, and the stock market are parts of the financial sector. 

Conclusion 

The service sector of India is a very important concept of general knowledge. The service sector of India is the fastest growing service sector in the whole world. As per some reports it was encountered that the service sector of India contributes 66% of the Economy to the Indian GDP. The service sector is a sector that provides a variety of services to the citizens of a country. The emergence of the service sector was noticed slowly after the establishment of globalization and with the growth of privatization, and urbanization in the country from the year 1961.