Service Driven Economy: The past few years have seen innovation which make us question “How’s this possible? You meet a human being in reality and for some weird reason you saw them being in your list of suggested friends on Facebook. The world is changing. Computer is now a temple of knowledge. Internet is a different place than it was before. We have services which provide us things in the blink of an eye. The growing number of food delivery applications, grocery at our doorstep and even services of a human at our own homes. But what led to the rise of this Service driven economy
The Supply side economics
The rise of Service Driven Economy in India is not attributed to point, that people demanded consumption of services. But because the supply of such services made our lives easier like never before and created a demand for them. This is to say that service industry always followed supply side economics. We all wished that there was an easier way to travel. But nobody demanded these services. It’s their supply that created a demand for themselves. One salient feature on which Service Driven Economy is based is “codification of trust”, where we put our trust on the Uber driver’s ratings or trust to build a relationship with individual on Tinder. Service industry is growing to enhance our satisfaction for the manufactured goods because as the manufacturing industry will be mechanized, humans will be working to enhance the utility derived from these goods.
Service Driven Economy
Conclusions are as long as the innovations like AI keep taking place, India will sustain as Service economy as long as this industry recognizes the needs and creates demand. Service economy run solely by human beings and abundance of labor in India. Growth of trust economy in consumers will lead to sustenance as long as classifications between industries exist.