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2, 13.3, 13.4, , 13.5, , Introduction, , Nature of Services Sector in India, , Role of Services Sector in India, , Health Industry, , - Important Trends in Health Industry, , - Problems/ Issues Facing the Health Industry, , - Opportunities in Health Industry, , Tourism Industry, , - Important Trends in Tourism Industry in India, , - Measures for the Development of Tourism in India, , EENEEEEEESSE SS OS, , , , The tertiary sector, also known as the services sector, is one of the, three main sectors of an economy, the other two being the primary, d the secondary sectors. Economies tend to follow a, , elopmental pattern that takes them from heavy reliance on, , ;, . i

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~ Business Economics - Vv (T.Y.B.Com SE =, sector and finally towards a mop, a7, , s have come to dominate Set, ee, tor covers a wide range of activities pan:, vided by the most sophisticated ste ftom, unications, satellite mapping and computer Softw, like, ices provided by barbers, carpenters, and plum ba to, intensive activities like civil aviation and shipping ©, ment oriented activities like tourism, real estate and hae to, re related activities like railways, Toadways ang Sing,, social sector-related activities like health and education 0), Services sector includes provision of services to business ag well, to final consumers. In this sector, people use time and Inoue, assets to create products. The output produced includes, contest, (information), service, attention to consumer,, , : advice and, consultancy. All of these are termed as ‘intangible goods’., , In India the National Accounts classifies the service sector broadly, into three sub-sectors, namely, (a) Trade, hotels, transport ang, communications, (b) Financing, insurance, real estate and business, Services and (c) Public administration and defence and other, , services. The WTO and RBI include construction in their list of, services., , , , __ The service industry forms the backbone of social and economic, _ development. It has emerged as the largest and fastest growing, _ sectors in the world economy. Its growth rate has been higher than, , , , that of agriculture and manufacturing sectors., , There have been significant changes in India’s economic structure, since Independence. These structural changes indicate that the, Process of development which began in the early fifties is still, continuing. An important indicator of development is a steady, decline in the contribution of agriculture and allied activities to the, GDP anda steady rise in the contribution of the services sector. At, present, the Indian economy is experiencing this,

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‘eoctor: Trends in Healtheare and Tourism Industry 177, , sector constitutes a large part of the economy both in, the a employment potential and its contribution to national, , vative services drive and go along with economic change. They, motor for social renewal and contribute significantly to, ngthening competitiveness. In India the share of services sector, CDP has reached 57 percent. Since 2012-13 service sector has been, in an average 8.0 percent per annum., , rowing on, the service industry in India covers a large number of activities, guch as «, , 4, Trade, , 9, Hotels and restaurants, , 3, Transport including tourist assistance activities as well as, activities of travel agencies and tour operators., , 4, Storage and communication, 5, Banking and insurance, 6, Real estate and ownership of dwellings, , 7, Business services including accounting, software development;, data processing services; business and management, consultancy; architectural, engineering and other technical, consultancy; advertisement and other business services., , 8. Public administration and defence, , 9. Other services including education, medical and health,, religious and other community services, legal services,, recreation and entertainment services., , 10. Personal services and activities of extra-territorial organisations, and bodies., , Although the services sector has a very important role to play in the, country’s economic development, the database in this sector is highly, disorganised. This is because of the absence of a well-organised, mechanism for maintaining regular and proper statistical records, , 7

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178, , by., , unorganised units. Further, the composition of unit, undergoes changes at a rapid pace because new, , for this sector. The process of data collection is made more diffi, , Business Economics - V (T.Y.B.Com, : SEM.), , Cult, ge Number of, , S in this Sector, units or Newer, , the fact that the sector is dominated by a lar, , service areas come into existence and others disappear with high, , frequency., , dev., , , , The service sectors has great role to play in India's economic, , elopment. The contribution of service sector to India's economic, , growth is explained below :, , i, , Driver of economic growth : Decadewise analysis of sectoral, growth trends shows that the GDP accelerated to 5 - 6 Percent, during the 1980s from 2.9 percent during the seventies. The, pick-up in GDP growth was supported by all the sectors. Since, the eighties, the growth trend of industrial and service sectors, have shown an upward trend, while that of agriculture and, allied activities has followed a downward trend (see Table 13.1), , Performance of the services sector in the Indian economy has, been very good. In contrast with agricultural and industrial, sectors, except in the 1970s, the growth in services sector has, shown an upward trend, rising from 4 percent in 1950s to 89, , percent in 2015-16 with a dip in 2016-17. In 2017-18, the growth, has again picked up (see Table 13.1), , Table 13.1 : Service Sector Growth - GVA at Basic Prices, (percent), , , , Sectors \ Period |2012-13 |2013-14 2014-15 |2015-16 |2016-17, , , , Services 8.1 78 10.3 8.9 Dh, , , , , , , , , , , , , , , , Source : Various Issues of Economic Surveys., , According to Economic Survey, 2011-12, the services sector, growth rate at constant prices has always been above overall, , * Economic Survey, 2017-18.

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o : Trends in Healthcare and Tourism Industry, , ,.oeF growth rate since 1996-97 except for 2003, ne converged. Thus, for the last 15 years, wth much above overall GDP growth of the economy h, , as, , been pushing up the growth of the ec, sector contributed 72.5% of GVA mor In 2017-18, the, , 179, , 04 when the, this sector with, , the growth was mainly due to higher growth in sub-sectors, like trade, repair, hotels and restaurants, financial servi, public administration and defence. ~, , Rising contribution to GDP : Over the years the contribution, of services sector to GDP has increased steadily. The share of, services sector in India's GDP at factor Cost (at current prices), was 39.9 percent in 1950-51, According to the new method of, India's National Income Statistics, the services sector accounted, for 52.6% of India's Gross Value Added (GVA) at basic prices, (current prices) in 2014-15. The share of services (including, construction) in GVA was 55.2% percent in 2017-18., , Contribution to employment : Employment growth in this, sector has been the highest in recent years when compared to, the primary and the secondary sectors. There has been, significant increase in the share of service sector in the, employment from 22.9% in 1993-94 to 32.0% in 2015-16 (see, , Table 13.2)., , Table 13.2 : Share of the Service Sector in Employment, , , , , , Year Percentage, 1993-94 22.9, 2011-12 27.8, 2015-16 32.0, , , , , , , , , , Source : Various Issues of Economic Surveys., , Among the states, Kerala has a higher share of employment in, the services sector. Trade, hotels and restaurants and public, administration, education and community services and, financial services are the major employment providing service, sectors in different states. Employment in the organized services, sector is by and large confined to highly qualified professionals,