The correct option is 2 only.
Explanation
The service sector in India is characterized by a distinct dualism. It comprises a modern, high-growth segment employing skilled labor and a traditional, unorganized segment employing unskilled or semi-skilled labor with limited growth prospects.
Statement-wise Analysis:
- Statement 1 is Incorrect. The entire service sector is not growing equally. While modern services like Information Technology (IT), financial services, and telecommunications have seen rapid growth and high value addition, traditional services such as petty retail, transport, and domestic help often reflect distress employment or slow growth.
- Statement 2 is Correct. A significant portion of the service sector, particularly the organized segment (e.g., IT, banking, consultancy), employs highly skilled and educated workers who earn higher wages and contribute significantly to the GDP.
- Statement 3 is Incorrect. Small shopkeepers, repair persons, and transport operators typically belong to the unorganized sector. These workers generally do not enjoy job security, social security benefits, or regular income. Their employment is often characterized by vulnerability and low earnings.
Key Takeaway:
The Indian service sector is heterogeneous, split between a high-value organized sector offering skilled employment and a vast unorganized sector characterized by low wages, lack of job security, and absence of social benefits.