Q. 15

Services are a very important aspect for economic development of a country. Analyse the statement.

Answer :

Services are a very important aspect of economic development of a country because of the following reasons:

• Helps to improve national income: Service sector plays a major role in improving the national income of a nation. As national income increases, the economy will automatically move towards development.


• Helps in the development of the industrial sector: The industrial sector is highly dependent on the service sector, and its development is highly dependent on the development of the service sector. Transport services help to carry industrial goods from one region to the other. Banking and insurance services are required to satisfy the credit needs of the industrial sector.


• Helps in the development of the agricultural sector:The service sector also helps in the agricultural sector’s development by transporting agricultural commodities, satisfying credit needs, supplying educational and technical services.


• Helps in removing regional disparities: The service sector provides transport and communication, banking and insurance services, medical facilities and educational services to the remote and under-developed areas of a country. This helps in the development of those remote areas and thus in this way it becomes at par with other developed regions of the country and solves the problem of regional disparity.


Thus, from all these points, it can be clearly understood how important role does the service sector play in an economy.


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