Question 13 Marks
Study the table and answer the question given below.
It can be observed that comparatively over the last forty years, the tertiary sector has emerged as the largest producing sector of the three sectors. Highlight the factors responsible for the rising importance of the Tertiary Sector in Production.
| Share of Sectors in GDP in % | |||
| YEAR | Tertiary | Secondary | Primary |
| 1973-74 | 50 | 10 | 40 |
| 2013-14 | 68 | 21 | 11 |
Answer
View full question & answer→Over the forty years between 1973-74 and 2013-14, while production in all three sectors has increased, it has increased the most in the tertiary sector. As a result, in the year 2013- 14, the tertiary sector emerged as the largest producing sector in India replacing the primary sector. Its development can be attributed to various factors like:
• Basic services like hospitals, education, post and telegraph, courts, etc. are the responsibility of the government in developing countries.
• Demand for services such as transport, trade, and storage will increase with the development of primary and secondary sectors.
• Demand for tourism, shopping, private schools, private hospitals, etc. increases with the increase in the level of income.
• Rapid growth of the service sector also benefitted from external demand such as the software industry and call centre services.
• Liberalisation of the financial sector provided an environment for faster growth of financial services.
• Basic services like hospitals, education, post and telegraph, courts, etc. are the responsibility of the government in developing countries.
• Demand for services such as transport, trade, and storage will increase with the development of primary and secondary sectors.
• Demand for tourism, shopping, private schools, private hospitals, etc. increases with the increase in the level of income.
• Rapid growth of the service sector also benefitted from external demand such as the software industry and call centre services.
• Liberalisation of the financial sector provided an environment for faster growth of financial services.