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

Which of the following measures can reduce a trade deficit?

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Which of the following factors is NOT included in the calculation of Human Development Index (HDI)?

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Which of the following is a feature of monopolistic competition?

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Which of the following is considered a public good?

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What is the primary function of the International Monetary Fund (IMF)?

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Which term refers to an economy that has elements of both capitalism and socialism?

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What is meant by “marginal propensity to consume”?

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What does “balance of trade” refer to?

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What does the “Human Development Index” measure?

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Which of the following is an example of a capital receipt for the government?

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