Tertiary Sector

Total Questions: 24

1. In India Tertiary Sector Includes: [U.P.U.D.A./L.D.A. (Pre) 2002, U.P.P.C.S. (Mains) 2004, U.P.P.C.S. (Pre) 2003]

1. Trade and Transport

2. Finance and Real Estate

3. Forestry and Fishing

Choose the correct answer from the codes given below:

Code:

(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 3 only

Correct Answer: (b) 1 and 2 only

Solution:The tertiary sector of economy consists of industries which provide services. Hence the tertiary sector is also called services sector.

Services sector includes Trade, Hotel, Transport, Communication, Banking and Finance, Insurance, Real estate, Public Administration and Defence, Education, Entertainment and Tourism etc.

As per the First Revised Estimates of National Income 2022- 23 (released on 29th February, 2024), the share of Tertiary sector (Services) in GVA at current prices (in %) in recent years is as follows:

Year

2019-20

2020-21

(3rd R.E)

2021-22

(2nd R.E)

20223-24

(1st R.E)

Share (%)

54.8

52.3

52.2

54.2

As per the 2ndA.E. of 2023-24 (released on 29th February, 2024), the share of Services in Nominal GVA at current basic prices is estimated at 54.9%.

2. In India, service sector includes: [U.P.P.C.S. (Mains) 2004]

I. Mining and Quarrying

2. Transport and Communication

3. Hotels

4. Forestry and Fishing

Select the correct answer from the codes given below:

Code:

(a) Only I and II
(b) Only II and III
(c) Only III and IV
(d) Only I and IV

Correct Answer: (b) Only II and III

Solution:The tertiary sector of economy consists of industries which provide services. Hence the tertiary sector is also called services sector.

Services sector includes Trade, Hotel, Transport, Communication, Banking and Finance, Insurance, Real estate, Public Administration and Defence, Education, Entertainment and Tourism etc.

Year

2019-20

2020-21

(3rd R.E)

2021-22

(2nd R.E)

20223-24

(1st R.E)

Share (%)

54.8

52.3

52.2

54.2

As per the 2ndA.E. of 2023-24 (released on 29th February, 2024), the share of Services in Nominal GVA at current basic prices is estimated at 54.9%.

3. Which one of the following is a tertiary activity? [U.P. Lower Sub. (Pre) 2008]

(a) Forestry
(b) Manufacturing
(c) Farming
(d) Marketing

Correct Answer: (d) Marketing

Solution:Sector of economic activities are classified into three categories such as primary, secondary and tertiary.

(I)Primary sector includes agriculture, forestry, dairy, fishing, mining etc.

(i) The secondary sector of the economy produces finished goods for the raw materials extracted by the primary economy. All manufacturing activities fall in the secondary sector.

(The tertiary sector consists of industries which provide services, marketing falls in this category. Hence the option (d) should be the correct answer.

4. Which among the following is the primary sector of Indian economy? [U.P.P.C.S. (Pre) (Re. Exam) 2015]

(a) Agriculture
(b) Industry
(c) Cooperative
(d) None of the above

Correct Answer: (a) Agriculture

Solution:Sector of economic activities are classified into three categories such as primary, secondary and tertiary.

(i)Primary sector includes agriculture, forestry, dairy, fishing, mining etc.

(ii) The secondary sector of the economy produces finished goods for the raw materials extracted by the primary economy. All manufacturing activities fall in the secondary sector.

(iii) The tertiary sector consists of industries which provide services, marketing falls in this category. Hence the option (d) should be the correct answer.

5. Transport, Communication, Commerce come under the: [U.P.R.O./A.R.O. (Mains) 2017]

(a) Primary activities
(b) Secondary activities
(c) Tertiary activities
(d) Rural activities

Correct Answer: (c) Tertiary activities

Solution:Transport, Communication and Commerce come under the tertiary activities. The tertiary (service) sector covers a wide range of activities from commerce to administration, transport, communication, financial and real estate activities, business and personal services, education, health and social work etc.

6. The largest source of National Income in India is: [U.P.R.O./A.R.O. (Pre) 2021]

(a) Service Sector
(b) Agriculture Sector
(c) Industrial Sector
(d) Trade Sector

Correct Answer: (a) Service Sector

Solution:The services sector is the largest source of National Income in India, India's Nominal Gross Value Added (GVA) at basic prices for the services sector is estimated at about 146.35 lakh crore INR (at current prices) in 2023-24 (20d A.E.). The services sector accounts for 54.9% of India's Nominal GVA at current basic prices of Rs. 266.78 lakh crore in 2023-24 (2 Α.Ε.).

7. The share of Tertiary Sector In Indian economy during 2016-17 was : [U.P.R.O./A.R.O. (Pre) 2017]

(a) Rs.51.8 lakh crore
(b) Rs. 50.6 lakh crore
(c) Rs. 49.0 lakh crore
(d) Rs. 52.8 lakh crore
(e) (Rs. 73.49 lakh crore)

Correct Answer: (e) (Rs. 73.49 lakh crore)

Solution:At current prices, India's Gross Value Added (GVA) was stood at Rs. 139,65 lakh crore in 2016-17, in which share of tertiary (Services) sector was 52.6 percent (Rs. 73.49 lakh crore). Thus, none of the given options was correct. The services sector contributed 54.9% (146.35 lakh crore) to India's GVA at cur- rent basic prices (266.78 lakh crore) in 2023-24 (2 A.E.).

8. With reference to the Indian economy, consider the following activities? [I.A.S (Pre) 2002]

1. Agriculture, Forestry and Fishing

2. Manufacturing

3. Trade, Hotel, Transport and Communication

4. Financing, Insurance, Real Estate and Business services

The decreasing order of the contribution of these sector to the Gross Domestic Product (GDP) at factor cost at constant prices (2000-01) is :

(a) 3, 1, 2, 4
(b) 1, 3, 4, 2
(c) 3, 4, 1, 2
(d) 1, 3, 2, 4

Correct Answer: (d) 1, 3, 2, 4

Components of GVA in 2023-24 (2nd A.E.)	Share %
1. Service Sector	54.9%
Trade, hotels, transport, communication and services related to broadcasting	17.6%
Financial, real estate and professional services	22.7%
Public administration, defence and other services	14.6%
2. Industry	27.6%
Mining & quarrying	2.0%
Manufacturing	14.1%
Electricity, gas, water supply and other utility services	2.4%
Construction	9.0%
3. Agriculture & Allied Sectors	17.6%

9. During 2006-2010, which of the following service sectors registered fastest growth in India? [U.P.P.C.S. (Mains) 2010]

(a) Banking and Insurance
(b) Construction
(c) Transporation
(d) Communication

Correct Answer: (d) Communication

Solution:During 2006-2010, the communication sector registered fastest growth in India. In 2023-24 (2nd A.E.) at constant basic prices (2011-12), the GVA of Services' sub-sectors 'Trade, hotels, transport, communication and broadcasting services', Financial, real estate and professional services' and 'Public administration, defence and other services' are estimated to grow by 6.5 percent, 8.2 percent and 7.7 percent respectively, whereas they grew by 12.0 percent, 9.1 percent and 8.9 per- cent respectively in 2022-23 (1 R.E.). Construction sector is estimated to grow by 10.7 percent in 2023-24 (2nd A.E.), whereas it grew by 9.4 percent in 2022-23 (1*R.E.).

10. Among the service sector, which has the highest share in the India's GDP in 2006? [U.P.P.C.S. (Pre) 2008]

(a) Trade, Hotel, Transport and Communication
(b) Finance, Insurance, Real Estate and Business Services
(c) Community, Social and Personal Services
(d) Construction of buildings

Correct Answer: (a) Trade, Hotel, Transport and Communication

Solution:Option (a) was the correct answer in the context of question period (in year 2006-07). As per the Second Advance Estimates of National Income 2023-24 (released on 29th February, 2024) the share of sub-sectors of services sector in GVA at current prices in 2023-24 (2nd A.E.) is as follows: Trade, hotels, transport, Communication and services related to broad. casting-17.6%; Financial, real estate and professional ser. vices-22.7%; Public administration, defence and other ser. vices-14.6%. Construction's share is at 9.0%. Hence, in the present context the correct answer is option (b).

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