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.
Compare and contrast the development of India, China and Pakistan with respect to some salient human development indicators.
How is RBI controlling the commercial banks?
Explain the steps taken by the government in developing rural markets.
What are the functions of the environment?
Distinguish between the following
(i) Strategic and Minority sale
(ii) Bilateral and Multi-lateral trade
(iii) Tariff and Non-tariff barriers.
Why was the public sector given a leading role in industrial development during the planning period?
Match the following:
1. Prime Minister 3. Quota 4. Land Reforms 5. HYV Seeds 6. Subsidy |
A. Seeds that give large proportion of output C. Chairperson of the planning commission D. The money value of all the final goods and services produced within the economy in one year. E. Improvements in the field of agriculture to increase its productivity F. The monetary assistance given by government for production activities. |
Infrastructure contributes to the economic development of a country. Do you agree? Explain.
Find the odd man out (i) owner of a saloon (ii) a cobbler (iii) a cashier in Mother Dairy (iv) a tuition master (v) transport operator (vi) construction worker.
Highlight any two serious adverse environmental consequences of development in India. India’s environmental problems pose a dichotomy — they are poverty induced and, at the same time, due to affluence in living standards — is this true?
Discuss economic reforms in India in the light of social justice and welfare.
‘There is a downward trend in inequality world-wide with a rise in the average education levels’. Comment.
Explain the relevance of intergenerational equity in the definition of sustainable development.
Examine the role of education in the economic development of a nation.
Illustrate the difference between rural and urban poverty. Is it correct to say that poverty has shifted from rural to urban areas? Use the trends in poverty ratio to support your answer.
What was the two-fold motive behind the systematic de-industrialisation affected by the British in pre-independent India?
How do infrastructure facilities boost production?
Define worker-population ratio.
Suppose you are a resident of a village, suggest a few measures to tackle the problem of poverty.
Why were reforms introduced in India?