Topic Details (Notes format)

Services Sector and Service Exports

Subject: Economics

Book: Comprehensive Indian Economy

The services sector dominates India’s GDP, fueled by IT/ITeS, financial services, hospitality, and emerging digital platforms. Outsourcing hubs in Bangalore and Hyderabad have put India on the global stage. However, jobless growth concerns persist, given limited employment absorption in high-skill segments. Government policies aim to expand tourism, improve e-governance, and develop knowledge services. For exam prep, analyze how robust service exports contribute to foreign exchange earnings and how technology can drive rural service delivery (telemedicine, e-learning). Also note challenges like data protection, intellectual property rights, and global competition from other IT destinations.

Practice Questions

What is the main function of the Reserve Bank of India (RBI)?

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What does “Laissez-faire” policy advocate?

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Which of the following measures is most effective in controlling inflation?

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What is “inflation targeting”?

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Which of the following is NOT a function of the World Trade Organization (WTO)?

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Which of the following is an example of fiscal policy?

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Which of the following is a characteristic of “perfect competition”?

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What is the meaning of "fiscal deficit"?

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What does “primary sector” of the economy include?

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Which of the following is NOT part of the World Bank Group?

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