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Discuss the role of tertiary sector in economic development.

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Please find below the solution to the asked query.

Service sector can be considered as the lifeline for other two sectors of the Indian economy as they they help in the functioning of both primary and secondary sectors. Services like banking, transportation, insurance are required for the successful functioning of other two sectors.

a. The importance  and contribution of service sector has grown significantly in developed countries  because of increased demands of services like banking,education, transportation, medical which are considered as basic essential service
b. Development in agriculture and industry have also increased the importance of service sector.
c. Rise in income levels which has resulted in increase demand for services like eating joints, private hospitals,shopping, tourism etc
d. Also because of rising demand for IT services., which today has become the buzzword and imperative for country's growth. 


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There could be several reasons,
1) Several services such as hospitals, educational institutions, post and telegraph services, police stations, courts,village administrative offices, etc. are required. These can be considered as basic services. Ina developing country, the government has to take responsibility for the provision of these sectors.
2) The development of agriculture and industry leads to the development of the services such as transport,trade, storage, etc. Greater the development of primary and secondary sectors, more would be the need fot the services.
3) As the income levels rise, certain sections of people star demanding many more services like eating out, tourism, shopping, private hospitals, private schools, etc. Such changes can be seen drastically in the big cities rather than the rural areas.
4) Over the past decade, certain new services such as those based on information and communication technology have become more important and essential. The production in these services can be seen rising rapidly. 

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