Impact on Services Sector

Description: This quiz aims to assess your understanding of the impact of the services sector on the Indian economy. The questions cover various aspects of the services sector, including its contribution to GDP, employment, and overall economic growth.
Number of Questions: 14
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Tags: services sector economic impact gdp employment economic growth
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What is the approximate contribution of the services sector to India's Gross Domestic Product (GDP)?

  1. 25-30%

  2. 35-40%

  3. 45-50%

  4. 55-60%


Correct Option: D
Explanation:

The services sector is the largest contributor to India's GDP, accounting for approximately 55-60% of the total GDP.

Which of the following is not a major sub-sector within the services sector in India?

  1. Information Technology (IT)

  2. Financial Services

  3. Manufacturing

  4. Tourism


Correct Option: C
Explanation:

Manufacturing is not a sub-sector within the services sector. It is a separate sector of the economy that involves the production of goods.

How has the services sector contributed to employment generation in India?

  1. It has led to a decline in employment opportunities.

  2. It has remained stagnant in terms of employment generation.

  3. It has contributed to a significant increase in employment opportunities.

  4. It has had a negligible impact on employment generation.


Correct Option: C
Explanation:

The services sector has been a major source of employment generation in India, contributing to a significant increase in employment opportunities across various industries.

Which of the following is a key factor driving the growth of the services sector in India?

  1. Increased demand for skilled labor

  2. Government policies favoring the manufacturing sector

  3. Technological advancements and digitalization

  4. Declining agricultural productivity


Correct Option: C
Explanation:

Technological advancements and digitalization have been key factors driving the growth of the services sector in India, particularly in industries such as IT, e-commerce, and financial services.

How has the services sector contributed to India's overall economic growth?

  1. It has led to a decline in economic growth.

  2. It has had a negligible impact on economic growth.

  3. It has contributed to a moderate increase in economic growth.

  4. It has been the primary driver of economic growth.


Correct Option: D
Explanation:

The services sector has been the primary driver of economic growth in India, contributing significantly to the country's overall economic development.

What are some of the challenges faced by the services sector in India?

  1. Lack of skilled labor

  2. Inadequate infrastructure

  3. High cost of doing business

  4. All of the above


Correct Option: D
Explanation:

The services sector in India faces several challenges, including lack of skilled labor, inadequate infrastructure, high cost of doing business, and regulatory hurdles.

How can the government support the growth of the services sector in India?

  1. By investing in education and skill development

  2. By improving infrastructure

  3. By creating a favorable business environment

  4. All of the above


Correct Option: D
Explanation:

The government can support the growth of the services sector in India by investing in education and skill development, improving infrastructure, creating a favorable business environment, and implementing policies that encourage innovation and entrepreneurship.

Which of the following is an example of a service industry?

  1. Manufacturing

  2. Retail

  3. Agriculture

  4. Mining


Correct Option: B
Explanation:

Retail is an example of a service industry, as it involves the sale of goods and services to consumers.

How has the services sector contributed to India's exports?

  1. It has led to a decline in exports.

  2. It has had a negligible impact on exports.

  3. It has contributed to a moderate increase in exports.

  4. It has been the primary driver of export growth.


Correct Option: D
Explanation:

The services sector has been the primary driver of export growth in India, contributing significantly to the country's overall export earnings.

What is the approximate share of the services sector in India's total employment?

  1. 25-30%

  2. 35-40%

  3. 45-50%

  4. 55-60%


Correct Option: C
Explanation:

The services sector accounts for approximately 45-50% of India's total employment.

Which of the following is not a major challenge faced by the services sector in India?

  1. Lack of skilled labor

  2. Inadequate infrastructure

  3. High cost of doing business

  4. Favorable government policies


Correct Option: D
Explanation:

Favorable government policies are not a major challenge faced by the services sector in India. In fact, the government has been supportive of the growth of the services sector through various initiatives and policies.

How has the services sector contributed to India's foreign exchange reserves?

  1. It has led to a decline in foreign exchange reserves.

  2. It has had a negligible impact on foreign exchange reserves.

  3. It has contributed to a moderate increase in foreign exchange reserves.

  4. It has been the primary driver of foreign exchange reserves growth.


Correct Option: D
Explanation:

The services sector has been the primary driver of foreign exchange reserves growth in India, contributing significantly to the country's overall foreign exchange reserves.

Which of the following is an example of a knowledge-based service industry?

  1. Manufacturing

  2. Retail

  3. IT and software services

  4. Agriculture


Correct Option: C
Explanation:

IT and software services are examples of knowledge-based service industries, as they involve the creation, distribution, and use of knowledge and information.

How has the services sector contributed to India's overall productivity?

  1. It has led to a decline in productivity.

  2. It has had a negligible impact on productivity.

  3. It has contributed to a moderate increase in productivity.

  4. It has been the primary driver of productivity growth.


Correct Option: D
Explanation:

The services sector has been the primary driver of productivity growth in India, contributing significantly to the country's overall productivity improvement.

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