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 primary goal of a progressive tax system?

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What does “primary sector” of the economy include?

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Which of the following is a feature of a command economy?

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What is the term for the ability of an economy to produce more output from the same inputs?

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Which of the following is an example of a renewable resource?

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What is the term for the price at which demand and supply in a market are equal?

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Which of the following is NOT an example of an indirect tax?

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What is “quantitative easing”?

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What does the term “elasticity of demand” measure?

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

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