“Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.
I do not agree with the given statement. The tertiary sector plays a very significant role in the development of the Indian economy.
Over the forty years between 1977–78 and 2017–18, production in all three sectors has increased, but it has increased the most in the tertiary sector. As a result, in the year 2017–18, the tertiary sector emerged as the largest producing sector in India, replacing the primary sector.
The data for India over the last thirty years shows that goods and services produced in the tertiary sector contribute the most to the GDP. This indicates its dominance in the overall economic production.
Furthermore, activities in the tertiary sector help in the development of the primary and secondary sectors. These activities do not produce a good but act as an aid or support for the production process. For example, transport, storage, communication, and banking are essential to help production and trade.
Finally, several basic services such as hospitals, educational institutions, police stations, courts, transport, and banks are required in any country. In a developing country like India, the government has to take responsibility for the provision of these services, which fall under the tertiary sector.
Explanation
The question asks for an evaluation of the tertiary sector's role. The textbook context explicitly contradicts the statement in the question. It highlights the 'Rising Importance of the Tertiary Sector in Production'. The key points identified in the text are: 1) It is the largest producing sector (2017-18 data), 2) It contributes the most to GDP, 3) It supports primary and secondary sectors, and 4) It provides essential basic services provided by the government. The answer synthesizes these points to form a coherent argument supporting the sector's significance.