REASONS FOR THE GROWTH OF SERVICE INDUSTRY
It is obvious that the growth in the services sector has been substantive. The reasons for this growth are quite a few, some of which are summarized as follows.
- Affluence: – The increase in per capita income from Rupees 238.8 in 1950 to Rupees 11,934.5 in 1998 is an indicator of he increase in general affluence has given rise to service like pest-control, personal security, interior designer, etc.
- Leisure time: – People do get some time to travel and holiday and therefore there is a need for travel agencies, resorts, hotels, and entertainment. There are other’s who would like to utilize this time to improve their career prospects and therefore there is a need for adult education/distance learning/part time courses.
- Life expectancy: – The health programmed have significantly contributed to an increase in life expectancy given rise to services like old age homes, nursing homes, health care, etc.
- Working wives: – As more and more women have started working, the need for day care for children has increased, and so is the care with packed food and home delivery.
- Product complexity: – A large no. of products are now being purchased in households which can be serviced only by specialized persons like water purifies, micro wave ovens, home computers, etc. giving rise to the need for services like after sales service agents for durables, maintenance service providers, etc.
- Life complexity: – As the daily routine gets busier, individuals find it difficult to manage things on their own. Their leads to an obvious need for tax consultants, legal advisors, property advisers, etc.
- Resource scarcity and ecology: – As the natural resources are depleting and need for conservation is increasing, we have seen the coming up of service providers like pollution control agencies, car, pools, water management, etc.
- New products: – the development in information technology has given rise to services like PCOs, Pager service providers, Web Shoppe, etc
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