Introduction The global economy is facing unprecedented challenges due to rapid urbanization, resource depletion, climate…
MCQs on The Role of the Service Sector in the Indian Economy
- What percentage of India’s GDP was contributed by the service sector in 2021-2022?
A) 45%
B) 55%
C) 60%
D) 70%
Answer: C) 60% - Which of the following is the largest segment of the service sector in India?
A) Financial Services
B) Information Technology
C) Tourism
D) Healthcare
Answer: B) Information Technology - Which initiative was launched by the Indian government to promote the service sector?
A) Make in India
B) Digital India
C) Skill India
D) Start-up India
Answer: B) Digital India - What is the primary role of the service sector in economic development?
A) Reducing imports
B) Generating employment
C) Increasing agricultural production
D) Enhancing industrial output
Answer: B) Generating employment - Which of the following contributes significantly to India’s foreign exchange reserves?
A) Agricultural exports
B) Service exports
C) Manufacturing exports
D) Mining exports
Answer: B) Service exports - Which city is considered the IT hub of India?
A) Mumbai
B) Bengaluru
C) Hyderabad
D) Pune
Answer: B) Bengaluru - The service sector employs approximately what percentage of the Indian workforce?
A) 25%
B) 30%
C) 40%
D) 50%
Answer: C) 40% - Which of the following is a major challenge faced by the service sector in India?
A) Lack of skilled labor
B) Excessive government regulations
C) Overproduction
D) Limited market access
Answer: A) Lack of skilled labor - What is the role of IT services in the Indian economy?
A) Creating new agricultural techniques
B) Improving healthcare facilities
C) Enhancing global competitiveness
D) Increasing manufacturing output
Answer: C) Enhancing global competitiveness - Which government scheme aims to promote the tourism sector in India?
A) Pradhan Mantri Gram Sadak Yojana
B) Swadesh Darshan
C) PM Awas Yojana
D) Atmanirbhar Bharat
Answer: B) Swadesh Darshan - Which of the following sectors has seen significant growth due to globalization?
A) Agricultural sector
B) Service sector
C) Manufacturing sector
D) Mining sector
Answer: B) Service sector - Which sector has become a major driver of economic growth in India post-1991 liberalization?
A) Agriculture
B) Manufacturing
C) Services
D) Mining
Answer: C) Services - The growth of which sector has contributed to the rise of the middle class in India?
A) Agricultural sector
B) Service sector
C) Industrial sector
D) Textile sector
Answer: B) Service sector - Which of the following is a key feature of the Indian service sector?
A) High labor intensity
B) Low technology utilization
C) Strong export potential
D) Low employment generation
Answer: C) Strong export potential - Which of the following services is NOT typically included in the service sector?
A) Banking
B) Retail
C) Software development
D) Agriculture
Answer: D) Agriculture - Which international organization recognized India as one of the fastest-growing service economies?
A) IMF
B) World Bank
C) WTO
D) WHO
Answer: B) World Bank - What percentage of service exports does the IT sector account for in India?
A) 25%
B) 30%
C) 45%
D) 50%
Answer: D) 50% - Which of the following contributes to the overall competitiveness of the Indian service sector?
A) High tariffs
B) Skilled workforce
C) Low foreign investment
D) Weak infrastructure
Answer: B) Skilled workforce - Which service is most affected by seasonal fluctuations?
A) IT services
B) Tourism
C) Financial services
D) Healthcare
Answer: B) Tourism - The concept of “Digital India” aims to enhance which of the following?
A) Agricultural productivity
B) Infrastructure development
C) Service delivery through technology
D) Industrial output
Answer: C) Service delivery through technology - Which of the following is NOT a component of the Indian service sector?
A) Hospitality
B) E-commerce
C) Construction
D) Mining
Answer: D) Mining - What role does the healthcare service sector play in India’s economy?
A) It reduces population growth
B) It improves labor productivity
C) It decreases life expectancy
D) It has no significant impact
Answer: B) It improves labor productivity - The service sector is expected to account for what percentage of India’s GDP by 2030?
A) 60%
B) 70%
C) 75%
D) 80%
Answer: B) 70% - Which of the following best describes the “gig economy” in the context of the service sector?
A) Permanent employment contracts
B) Short-term or freelance jobs
C) Government jobs
D) Full-time employment only
Answer: B) Short-term or freelance jobs - The role of service sectors like logistics and supply chain management is crucial for which of the following?
A) Reducing inflation
B) Supporting manufacturing and trade
C) Increasing agricultural yields
D) Lowering import tariffs
Answer: B) Supporting manufacturing and trade - Which service sector has significantly contributed to job creation in urban areas?
A) Information technology
B) Agriculture
C) Mining
D) Construction
Answer: A) Information technology - The National Skill Development Mission aims to improve skills primarily in which sector?
A) Manufacturing
B) Services
C) Agriculture
D) Mining
Answer: B) Services - Which of the following is a significant barrier to the growth of the service sector in India?
A) High levels of foreign investment
B) Bureaucratic hurdles
C) Skilled labor availability
D) Robust infrastructure
Answer: B) Bureaucratic hurdles - Which Indian state is known for its significant contribution to the IT services industry?
A) Kerala
B) Tamil Nadu
C) Karnataka
D) Maharashtra
Answer: C) Karnataka - Which of the following statements is true regarding the service sector in India?
A) It employs mostly unskilled labor.
B) It is less important than the manufacturing sector.
C) It has a high growth potential in the global market.
D) It does not contribute significantly to GDP.
Answer: C) It has a high growth potential in the global market.
