(i) Basic services: Services such as hospitals, educational institutions, post and telegraph services, transport, banks, insurance companies, are in this group.
(ii) Development of primary and secondary sector: The development of agriculture and industry leads to the development of services such as transport, trade and storage.
(iii) Rise in income levels: As income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools and professional training centres.
(iv) Rise in information technology: Over the past decade or so, certain new services, such as those based on information and communication technology have become important and essential.
(v) Globalization: Due to globalization, people have become aware of new services and activities, and communication because of which the tertiary sector has gained importance