Answer:
(i) In any country several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, etc. are required. These can be considered as basic services.
(ii) The development of agriculture and industry leads to the development of service such as transport, trade, storage, etc. Greater the development of the primary and secondary sector more would be the demand for such services.
(iii) As income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools, professional training institutes, etc. These changes can be seen in big cities.
(iv) Over the past decade or so certain new services such as those based on information and communication technology have become important and essential. Therefore, production of these services has been rising rapidly.
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