The tertiary sector is becoming extremely important in India due to the following reasons:
1. It provides useful services such as transport, banking, education, etc.
2. The need for basic services such as better education facilities and better health care facilities is increasing.
3. The development in the agriculture and industry is directly related to the requirement of services of the tertiary sector.
4. With an increase in income, people are demanding new services such as tourism, shopping Complex, etc.
5. With more number of women being employed, the demand for services such as Housekeeping and baby care increasing.
1, GDP of the gross domestic product is calculated by adding the value of the final goods and services produced in all the three sectors in one year. The three sectors include the primary sector, the secondary sector, and the tertiary sector.
2. It includes only the value of final goods because the value of final goods includes all the value of all the intermediate goods that are used in the making of final goods.
3. It eliminates the problem of double counting.
4. For example the value of rupees 70 of a biscuit (final good), includes the price of the flour and all the other intermediate goods.
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