Tertiary sector has become important in India because :
(i) Basic services like hospitals, education, post and telegraph, courts, etc. are the responsibility of the government in developing countries.
(ii) Demand for services such as transport, trade, storage will increase with the development of primary and secondary sectors.
(iii) Demand for tourism, shopping, private schools, private hospitals, etc. increases with the increase in the level of income.
(iv) Rapid growth of services sector also benefitted from external demand such as software industry and call centre services.
(v) Liberalisation of financial sector provided an environment for faster growth of financial services.