Major reasons for the growth of service sector in India:

    In recent times the service sector is increasing at a very fast pace. After the liberalization in the year 1991, the contribution of service sector is continuously increasing in the growth of our economy. However, agriculture is still dominating the Indian economy. Service sector are growing not only in volume but also in sophistication and complexity. The growth of service industry is the result of combination of several reasons, they are,

• Increasing affluence(wealth)
  

Here with the increasing affluence, there has been an increase in the demand for those services, which the customers used to perform by themselves. For example, service provided by the gardener, servants, car driver etc.

• More leisure(free time) time
  

This factor has lead to an increase in those services which are related to entertainment, because of increase in leisure time in today's people life. For example tourism industry has grown because of more leisure time available to the people.

• Greater life expectancy(hope)
  

With increase in the average life of the people, there has been an increase in the service which is related to field of health care, for example medical services, pathology laboratory, nursing homes. Health care services etc.

• Greater complexity of the product
  

With the growing complexity of the product, there has been an increase in the services which are indirectly supporting the maintenance of these complex products. For example Air-conditioner, car, computer, and other complex products require service every yearly of every half yearly.

• Higher percentage of working women
  

With the passage of the time, there has been an increase in the working women. This has indirectly leaded to increase in the growth in the services such as, domestic servants, baby sittings, etc.

• Increasing complexity of life
  

This has lead to an increase in the services of marriage bureau, legal service, income –tax consultants, placement services, etc.

• Increasing number of new products
  

There are certain products which, if invented will lead to growth in the service sector .computer being the invention of the 21^st century has lead to software industry which is totally a sieve industry.

 

    Thus, above mentioned factors are responsible to the increase in the growth of the service sector.