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The Impact Of Service Sector On Indian Economy

India has taken substantial steps towards economic liberalization during last few years, having worked out strategies for brining about rapid economic development. India has managed to achieve a six percent annual growth rate in her economic agenda. During these years, a large increase in the middle class category income has been seen and it is estimated that there are about 200 million people in the middle class category. And particularly on the basis of this figure, all the efforts are concentrated. This category will have a substantial demand for service in the next century. This point is made clear by the following examples.

With increasing standards in education, which in India is provided free of cost and compulsory till the age of 14 years by the Indian government, there will be increasing demand for educational services. Primary school, secondary and higher secondary school, junior degree colleges-all these institutes are in great demand, with the increase in population and an awareness of the benefits of seeking education. As the number of students goes on increasing, there is also increasing demand for tuitions, private classes etc.

With the establishment of technical institutes even at the district level, these has emerged an increase in demand for the services of professionally qualified technicians.

With the increasing amount of trade and business covered by road, there exists a substantial demand for transport services, which benefits various automobile manufacturers, who cash boxes start overflowing. Large sections of the population appreciate having their own vehicles, providing a good business proposition for the automobile industry.

Banking services are very necessary to meet financial requirement of the public and the national industrial sector.

The electric services provide benefits to the society, industry and so no. adequate hospital services are essential for the well beings of the society.

Personal care services are essential to develop potentiality of an individual for a perfect personality and positive image projection.

Hospitality services (hotels etc.) work on strategies to satisfy the business class through their services in term of comfort and satisfaction.

The tourism industry is a potential one which has geared itself to make tourists enjoy the holiday in destinations of their choice, and take them away from the monotonous life in cities.

The entertainment industry plays an equality important role towards this end.

All these services have left management scientists, professionals and socio economic thinkers to analyze and understand that managing services to the consumers, the main thing in this business is that they have unlimited potentialities and we have to explore these opportunities and tap them against the background of the changing, social, cultural and economic condition. The professional requirements need a change when technology develops and evolves. These necessitate proficiency in the management level, possible only through giving a boost to human abilities.  

Madugundu Krishna: English and Telugu writer. Hyderabad-India.
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