In the sense of economy, services are all functions or tasks, performed by an individual or a group of individuals, for whom there is a demand and therefore a price is determined if it is available in the relevant market. Services are sometimes called intangible goods. They are consumed at the point of production and are generally not transferable, in the sense that the service can not be bought and then resold at a different price.
The Services sector is made up of a broad spectrum of service providers throughout the country. Economic Survey, 2011-12 noted that "the services sector has been a vital and vital force driving the growth of the Indian economy for more than a decade.The economy has successfully navigated the turbulent years of the recent global economic crisis Due to the vitality of this sector in the national economy and its prominent role in the economic interactions of India. "
In a country like India, which has a huge population size, the services sector has enormous potential. The development of the service sector can transform this large-scale labor force into an asset by its appropriate uses and therefore can generate a huge size of revenue for the nation as a whole.
The services sector usually covers a wide range of activities from the most sophisticated information technology (IT) to simple services provided by the unorganized sector such as plumber, masion, barber, etc.
The National Accounts classification of the services sector includes commerce, hotels and restaurants; Transport, storage and communication; Financing, insurance, real estate and business services; And community, social and personal services. In the World Trade Organization (WTO) and Reserve Bank of India (RBI) classification, construction is also included in the services sector.
The importance of the service sector is well recognized everywhere. Tom Peters, a renowned author once said, "When a manufacturing plant is built, it begins to depreciate the day it opens." The well-served customer, on the other hand, is an appreciable asset. The likelihood of repeat business, business add-on and priceless monthly price references.
Among the three major sectors (agriculture and allied, secondary and service sectors), which contribute to the development of a country's economy, the contribution of the services sector has been steadily increasing in recent years.
In most of the developed countries of the world, the service sector contributes most of its Gross Domestic Product and generates three times more employment than the manufacturing sector.
In most of the developing countries, where agriculture and industry dominated the show in employment generation until a few years ago, things began to change in the recent period. In recent years, the service sector has experienced rapid change in its favor by generating income and employment. Thus, it has been observed that the services sector has become a major player in almost all countries of the world.