Which of the following has been a major driver of service sector growth in India? MCQ with Answer and Explanation

Which of the following has been a major driver of service sector growth in India?
A. Decline in domestic and global demand
B. IT and IT-enabled services, liberalisation and rising incomes
C. Only growth in agricultural productivity
D. Complete restriction on foreign investment in services
Answer: Option B
Solution (By JKSSB Mock Tests)
The expansion of IT and ITES, financial services, trade and tourism, supported by liberalisation and rising incomes, has driven the rapid growth of India's service sector.

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Practice More Economy Set 1 Questions

Question #1
The 'unemployment rate' in India measured by PLFS is the percentage of unemployed among:
A. total population
B. working-age population
C. labour force
D. employed persons

Correct Answer: Option C


Explanation:
Unemployment rate is unemployed as a percentage of the labour force.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Keynesian cross' model shows equilibrium income where:
A. interest rate equals inflation
B. exports equal imports
C. money supply equals money demand
D. aggregate demand equals aggregate supply

Correct Answer: Option D


Explanation:
The Keynesian cross shows equilibrium where aggregate demand equals aggregate supply.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'monetary policy framework' in India legally mandates RBI to target:
A. GDP growth
B. exchange rate
C. fiscal deficit
D. consumer price inflation

Correct Answer: Option D


Explanation:
The RBI's monetary policy framework targets consumer price inflation.

This question belongs to: Economy GK Economy Set 1