Service Sectors

The service sector is also called the service industry or the tertiary sector because it is just a service providing industry and does not produce any product as such. Whereas the secondary industry which comprises manufacturing and primary sector comprised of agriculture, fishing, mine extraction etc. are product generating sectors. A service industry can be a public, private owned entity. Some of the businesses that come under service industries are hotels and restaurants, real estate, banking and insurance, public administration, defense etc.

The industries that have gained importance are Information Technology, Communication and entertainment. Whereas, the most employment generating service sector industries are construction, financial services, transport and communication. Trade has been liberalized in all services due to the General Agreement on Trade in Services which is the first multilateral agreement.

Besides software and Business Process Outsourcing, in which India has already made an impact in the world market, there are other areas with good potential, which include hospitals, mapping, accounting and auditing, printing and publishing, satellites and even super specialties. This Sector has provided support in the form of Information Technology, financial services, software, transport and logistics and consultancy to both primary and secondary sectors.