Meaning and Definition of Service Sector

    The service industry forms the backbone of the social and economic development of a region. It has emerged as the largest and fastest-growing sectors in the world economy, making higher contributions to the global output and employment. Its growth rate has been higher than that of agriculture and manufacturing sectors.

    It is a large and most dynamic part of the Indian economy in terms of employment potential and contribution to national income. It covers a wide range of activities, such as trading, transportation and communication, financial, real estate and business services, community, social, and personal services.

    The products of the service sector are intangible, which includes services such as communication, transportation, warehousing, etc. Workers or employees in this sector are focused on developing services and not products.

    For example, teaching, consultancy, banking, nursing, etc., are the products of the service sector.

    Services hold immense potential to accelerate the growth of an economy and promote the general well-being of the people. They offer innumerable business opportunities to investors.

    They can generate substantial employment opportunities in the economy as well as increase their per capita income. Without them, the Indian economy would not have acquired a strong and dominating place on the world platform.

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