What are the major factors responsible for the high growth of the service sector?
The major factors that led to the growth of service sectors in India are as follows;
1. High demand for services as a final product: India was a virgin market for the service sector. So, when the service sector started booming due to business outsourcing from the developed countries to India, there was very high demand for these services especially for banking, computer service, advertisement and communication. This high demand in turn led to a high growth rate of the service sector.
2. Liberalisation and economic reforms: The growth of Indian service sector is also attributable to the liberalisation and various economic reforms that were initiated in 1991. Due to these reforms, various restrictions on the movement of international finance were minimised. This led to huge inflow of foreign capital, foreign direct investments and outsourcing to India. This encouraged the service sector growth.
3. Structural transformation: Indian economy is experiencing structural transformation that implies shift of economic dependence from primary to tertiary sector. Due to this transformation, there was increased demand for services by other sectors which y boosted the service sector.
4. Advanced technology and growth of IT: The advancements and innovations in the IT sector enabled the use of internet, telecommunication, mobile phone and electronic transactions across different countries. All these contributed to the growth of the service sector in India.
5. Increased volume of trade: Low tariff and non-tariff barriers on imports by India are also responsible for the high growth rate of the service sector. The foreign trade reforms enabled the domestic products to interact and compete in the international markets.
6. Cheap labour and reasonable degree of skill in India: Due to the availability of cheap labour and reasonable degree of skilled manpower in India, developed countries found outsourcing to India feasible and profitable. The business outsourcing in itself provides substantial encouragement (like development of human capital that requires services like good coaching centers and reputed institutions, etc.) to the growth of the service sector.
How is RBI controlling the commercial banks?
Distinguish between the following
(i) Strategic and Minority sale
(ii) Bilateral and Multi-lateral trade
(iii) Tariff and Non-tariff barriers.
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Why were reforms introduced in India?
Those public sector undertakings which are making profits should be privatised. Do you agree with this view? Why?
Do you think outsourcing is good for India? Why are developed countries opposing it?
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Do you think the navaratna policy of the government helps in improving the performance of public sector undertakings in India? How?
What do you understand by devaluation of rupee?
Why are tariffs imposed?
What was the focus of the economic policies pursued by the colonial government in India? What were the impacts of these policies?
What are the two major sources of human capital in a country?
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Who is a worker?
Explain the term ‘infrastructure’.
What is meant by environment?
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Name some notable economists who estimated India’s per capita income during the colonial period?
Which is regarded as the defining year to mark the demographic transition from its first to the second decisive stage?
Describe the meaning of public health. Discuss the major public health measures undertaken by the state in recent years to control diseases.
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Differentiate the six systems of Indian medicine.
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What was the focus of the economic policies pursued by the colonial government in India? What were the impacts of these policies?
What is the sectoral composition of an economy? Is it necessary that the service sector should contribute maximum to the GDP of an economy? Comment.
Outline the steps involved in attaining sustainable development in India.
Trace the relationship between human capital and economic growth.
Underscore some of India’s most crucial economic challenges at the time of independence.