Coupon Accepted Successfully!


Problems Of Service Sector In India

  1. Our infrastructure is inadequate not only in the rural areas but also in the urban areas. For example, power shortage and traffic congestions are very common in Bangalore, the silicon city of India. These effect the quality of services provided.
  2. Though service sector has been the fastest growing sector in the last decade and has contributed more than 57% of the GDP, it provides less than 25 % of the total employment.
  3. India has great potential in the tourism sector. But there is a need to create proper setup for attracting tourists. Foreign tourists often get harassed and cheated in the hands of babus and officialdom, touts and conmen.
  4. Etiquettes and good behaviour are the hallmarks of the service sector. Indian service providers whether they are banks, hotels and restaurants, hospitals or public administration, they need to be trained thoroughly in public dealing, etiquettes, hospitality and manners.
  5. The airports, railways etc. in India are not clear and well organized. They need to be revamped and reorganized.
  6. Our consular division also is not proper. It takes many days to issue visas. This hampers the growth of the tourism sector. For this, we need to have a system which entails single window clearance.
  7. Service trade also faces a number of problems. These include lack of setup like export promotion councils (other than for computer software), various visible and invisible barriers to service trade like visa restrictions, sector specific restrictions and preferential market access.
  8. Unfair competition in the telecom sector and lack of interest, infrastructure, personal computer penetration, monitoring and customer demand, mar the growth of e-commerce.
  9. Service sector cannot grow in isolation. It needs strong backing of other sectors, primary and secondary. In India, such backing needs to be strengthened.
  10. Indian service providers (like BPOs and IT service providers) are facing stiff competition from other countries. They need to improve their quality and reduce their costs.

Test Your Skills Now!
Take a Quiz now
Reviewer Name