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Rising importance of the tertiary sector and empoyment in india

Rising Importance of Tertiary sector
  • In these years tertiary sector is gaining importance in India this is because of following reasons.
  • India is a developing country thus the Provision of basic services such as health, education, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transportation, banks, insurance companies is done by government only.
  • Rapid growth in agriculture and industrial sector increased the demand for support services such as transportation, banking, storage, trade.
  • With increased income people started enjoying better life such as by eating out, tourism, shopping, professional training etc.
  • Development in information and communication services created the need in people’s lives.
  • However the growth in tertiary sector is not equitable this is because the skilled workers in this sector earns a very high income while most peoples are semiskilled and unskilled hence they have very low income levels.
Employment in India
  • In India even if tertiary sector is dominant still maximum population is employed in primary sector.
  • Even if the tertiary sector’s contribution in GDP is increased still maximum population is employed in primary sector only. This is because secondary and tertiary sectors are not producing enough employment opportunities.
  • This signifies that more than half of the workers in the country are employed in primary sector which contributes only quarter part of the GDP.
  • In contrast to this secondary and tertiary sectors employ less than half population still they produce three fourth of the GDP.
  • It means that peoples employed in agricultural sector is more than required and no one is fully employed. E.g. A family of five members work in their farm. Even if there is a need of two peoples, still three more peoples in the family are involved for the work. In this way the work is get divided and no one is fully employed. Such kind of situation in which Peoples look to be working but they are made to work less than their potential is called underemployment.
  • In contrast to an unemployed person, the status of underemployed person is hidden thus it is also called disguised unemployment.

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