Ever since the service sector got liberalized in the year 1991, it has seen constant growth. The following are the reasons responsible for the growth of service sector in the Indian economy.
- Increase in the income of people: Since the income level of the people has been increasing ever since, with increasing affluence there is increase in the demands of the services like maids, cooks, servants and gardeners. (h) Increase in population: With an increase in number of people in the country, the demand for service sector has increased. Demands for service like schools, health department and nursing homes have increased.
- Increase in numbers of working women: With the passage of time there has been a massive increase in the number of working women in India. This has led to increase in demands in the service sector like household help, babysitters and cooks.