Tertiary Sector

Total Questions: 24

11. The largest share of Gross Domestic Product (GDP) in India comes form: [U.P.P.C.S. (Pre) 2012]

Correct Answer: (c) Services sector
Solution:India's services sector (tertiary sector) has emerged as a prominent sector in terms of its contribution to National and States Incomes, trade flows, FDI inflows and employment. In the context of question period as well as in the present context, the largest share of GDP/GVA in India comes from the services sector. As per the Second Advance Estimates of follows:
Component

2021-22 (2nd  R.E.)

2022- 23 (1nd R.E.)

2023-24 (2nd A.E.)

Agriculture & Allied sectors18.918.217.6
Industry28.927.627.6
Service Sector52.254.254.9

Agriculture and allied sectors include agriculture, forestry and fishing. Industries include mining and quarrying, manufacturing, electricity, gas, water supply and other utility ser vices and construction. Services sector includes trade, hotels, transport, communication and broadcasting services, financial, real estate and professional services; public administration, defence and other services.

12. Which one of the following is the correct sequence in decreasing order of the contributions of different sectors to the Gross Domestic Product of India? [U.P.P.C.S. (Mains) 2017, U.P.P.C.S. (Pre) 2005]

Correct Answer: (d) Services Industry > Agriculture
Solution:India's services sector (tertiary sector) has emerged as a prominent sector in terms of its contribution to National and States Incomes, trade flows, FDI inflows and employment. In the context of question period as well as in the present context, the largest share of GDP/GVA in India comes from the services sector. As per the Second Advance Estimates of follows:
Component

2021-22 (2nd  R.E.)

2022- 23 (1nd R.E.)

2023-24 (2nd A.E.)

Agriculture & Allied sectors18.918.217.6
Industry28.927.627.6
Service Sector52.254.254.9

Agriculture and allied sectors include agriculture, forestry and fishing. Industries include mining and quarrying, manufacturing, electricity, gas, water supply and other utility ser vices and construction. Services sector includes trade, hotels, transport, communication and broadcasting services, financial, real estate and professional services; public administration, defence and other services.

13. Which among the following sector contributed most to the GDP of India? [M.P.P.C.S. (Pre) 2008]

Correct Answer: (c) Tertiary sector
Solution:India's services sector (tertiary sector) has emerged as a prominent sector in terms of its contribution to National and States Incomes, trade flows, FDI inflows and employment. In the context of question period as well as in the present context, the largest share of GDP/GVA in India comes from the services sector. As per the Second Advance Estimates of follows:
Component

2021-22 (2nd  R.E.)

2022- 23 (1nd R.E.)

2023-24 (2nd A.E.)

Agriculture & Allied sectors18.918.217.6
Industry28.927.627.6
Service Sector52.254.254.9

Agriculture and allied sectors include agriculture, forestry and fishing. Industries include mining and quarrying, manufacturing, electricity, gas, water supply and other utility ser vices and construction. Services sector includes trade, hotels, transport, communication and broadcasting services, financial, real estate and professional services; public administration, defence and other services.

14. Which of the sectors of Indian economy has the highest contribution of GDP (Gross Domestic Product)? [Uttrakhand U.D.A./L.D.A. (Mains) 2006]

Correct Answer: (c) Service sector
Solution:India's services sector (tertiary sector) has emerged as a prominent sector in terms of its contribution to National and States Incomes, trade flows, FDI inflows and employment. In the context of question period as well as in the present context, the largest share of GDP/GVA in India comes from the services sector. As per the Second Advance Estimates of follows:
Component

2021-22 (2nd  R.E.)

2022- 23 (1nd R.E.)

2023-24 (2nd A.E.)

Agriculture & Allied sectors18.918.217.6
Industry28.927.627.6
Service Sector52.254.254.9

Agriculture and allied sectors include agriculture, forestry and fishing. Industries include mining and quarrying, manufacturing, electricity, gas, water supply and other utility ser vices and construction. Services sector includes trade, hotels, transport, communication and broadcasting services, financial, real estate and professional services; public administration, defence and other services.

15. Which one of the following contributes highest share in India's domestic production?

Correct Answer: (d) Services
Solution:India's services sector (tertiary sector) has emerged as a prominent sector in terms of its contribution to National and States Incomes, trade flows, FDI inflows and employment. In the context of question period as well as in the present context, the largest share of GDP/GVA in India comes from the services sector. As per the Second Advance Estimates of follows:
Component

2021-22 (2nd  R.E.)

2022- 23 (1nd R.E.)

2023-24 (2nd A.E.)

Agriculture & Allied sectors18.918.217.6
Industry28.927.627.6
Service Sector52.254.254.9

Agriculture and allied sectors include agriculture, forestry and fishing. Industries include mining and quarrying, manufacturing, electricity, gas, water supply and other utility ser vices and construction. Services sector includes trade, hotels, transport, communication and broadcasting services, financial, real estate and professional services; public administration, defence and other services.

16. The share of services in India's GDP and total employment in 2012-13 respectively are approximately? [U.P.P.C.S. (Mains) 2014]

Correct Answer: (b) 57% and 28%
Solution:The share of services in India's GDP and total employment in 2012-13 respectively were approximately 56.9% and 28.1%. According to the Economic Survey 2018-19, the share of services in India's GVA and total employment in 2018-19 was 54.3% and 34%, respectively. The share of services in GVA at current basic prices is at 54.9% in 2023-24 (2nd A.E.; released on 29th February, 2024).

17. For which of the following States the share of services sector in State GDP has been largest in 2008-09? [U.P.P.C.S. (Mains) 2010]

Correct Answer: (a) Delhi
Solution:In the year 2008-09, top 4 States/UTs in which services sector had the largest share in State's GDP, were as follow: Delhi > Chandigarh > Kerala > Maharashtra. As per the Economic Survey 2021-22, Chandigarh (74.00%) and Delhi (68.22%) were at the top with reference to the share of services sector in the Gross State Value Added (GSVA) in 2019-20, while Sikkim highest (21.82%) was at the last place. Maharashtra and Karnataka were the top two contributers to services GSVA, with Rs. 15.1 lakh crore and Rs. 9.71 lakh crore gross value added by ser- vices sector in 2020-21 respectively.

Note : The data of services sector at the State/UT level was not provided in the Economic Survey 2022-23.

18. Which of the following statements is not true about the Indian Economy? [U.P.P.C.S. (Pre) 2010]

Correct Answer: (b) The share of services sector in India's GDP is only 25%
Solution:Statement (b) is totally wrong, because the share of services sector in India's GDP in 2009-10 was 57.09% and in 2012-13 59.29%. The share of services in GVA at current basic prices is at 54.9% in 2023-24 (2nd A.E.). Other statements are nearly correct with reference to question period and Census 2001. As per the Census 2001, 58.2% of India's working population was engaged in agriculture (about 55% according to the Cen- sus 2011) and in the year 2001-02, the contribution of agriculture to the GDP was at 22.42%.

19. What was the rank of growth rate of services of India in world during the period 2001-2012? [Chhattisgarh P.C.S (Pre) 2014]

Correct Answer: (b) Second
Solution:According to the Economic Survey 2013-14, the service sector with around 57 percent contribution to the GDP, has made rapid strides in the last few years. India has the second fastest growing services sector with the CAGR (Compound Annual Growth Rate) at 9.0 percent, just below China's 10.9 percent, during the period from 2001 to 2012.

As per the 1" R.E. of 2022-23, at constant prices (2011-12), services sector growth continued during 2022-23 (1 R.E.), reaching 10.0 percent from 9.2 percent in 2021-22 (2nd R.E.). It is to be noted that due to COVID-19 pandemic, as per the 3rd R.E., GVA of services sector was contracted by 8.4 percent in 2020-21

20. Since 1980, the share of the tertiary sector in the total GDP of India has: [I.A.S (Pre) 1999]

Correct Answer: (a) shown an increasing trend
Solution:From 1980 to 2011-12, the share of the tertiary sector in the total GDP of India had shown an increasing trend fe. non- decreasing trend. As per the 2nd A.E. of National Income, 2023-24 (released on 29th February, 2024) the share of services sector in GVA at current basic prices is around 54.2% (1 R.E.) in 2022-23 and 54.9% in 2022-23 (20 A.E.) against around 49.0% and 51.8% in 2011-12 and 2014-15, respectively.