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Tertiary sector has become important in India because :

(i) Basic services like hospitals, education, post and telegraph, courts, etc. are the responsibility of the government in developing countries.

(ii) Demand for services such as transport, trade, storage will increase with the development of primary and secondary sectors.

(iii) Demand for tourism, shopping, private schools, private hospitals, etc. increases with the increase in the level of income.

(iv) Rapid growth of services sector also benefitted from external demand such as software industry and call centre services.

(v) Liberalisation of financial sector provided an environment for faster growth of financial services.

The Importance of Tertiary Sector in India

In recent years, India has witnessed tremendous growth in the tertiary sector. The sector has become the largest contributor to India's GDP, surpassing agriculture and manufacturing. There are various reasons behind the growth of the tertiary sector in India.

Shift from Agriculture to Services

India has been an agricultural country for centuries, but with time, the country has shifted its focus to the services sector. The shift has been gradual as the services sector has grown at a faster pace than agriculture and manufacturing. The services sector is less dependent on natural resources, which makes it more resilient to environmental changes.

Increasing Urbanization

India has witnessed a significant rise in urbanization, which has led to an increase in demand for services. Urbanization has resulted in a rise in income levels, which has led to an increase in the demand for services like healthcare, education, and entertainment. The rise in urbanization has also led to an increase in the number of people employed in the services sector.

Rise of the Middle Class

The growth of the middle class has been a significant factor in the growth of the services sector. The middle class has been growing at a rapid pace, which has led to an increase in demand for services like banking, insurance, and real estate. The rise of the middle class has also led to an increase in the demand for luxury goods and services.

Investment in Technology

India has invested heavily in technology, which has led to the growth of the services sector. The country has become a hub for IT and ITES services, which has created numerous job opportunities. The government has also initiated various schemes to promote entrepreneurship, which has led to the growth of startups in the services sector.

Conclusion

In conclusion, the tertiary sector has become a significant contributor to India's economy. The growth of the sector can be attributed to various factors, including the shift from agriculture to services, increasing urbanization, the rise of the middle class, and investment in technology. The government needs to focus on providing the necessary infrastructure and policies to support the growth of the sector.