Tertiary sector has become important in India due to (i) Basic services like hospitals, education, post and telegraph, courts etc. are the responsibility of the government. (ii) Demand for services such as transport, trade, storage has increased with the development of primary and secondary sectors. (iii) Demand for tourism, shopping, private schools, private hospitals etc. increased with the increase in the level of income. (iv) Rapid growth of service sector also benefitted from external demand such as software industry and call centre services.