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The Services Sector — GK Questions with Answers

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24 questions
  1. Which sub-sector of India’s services sector contributed the highest percentage to the annual growth rate of GDP — (MPPCS, 2000)
    1. Real estate, ownership of dwellings and business services
    2. Community, social and personal services
    3. Transport, storage and communication
    4. Trade, hotels and restaurants
    Show answer

    Answer: (D) Trade, hotels and restaurants

    At that time trade, hotels and restaurants contributed the largest share to GDP growth.

  2. Consider these statements — 1. Software is one sector in which India has built a distinct global identity. 2. The contribution of the services sector to the national economy, both in value addition and in employment generation, is rising year on year.
    1. Only 1
    2. Only 2
    3. Both 1 and 2
    4. Neither 1 nor 2
    Show answer

    Answer: (C) Both 1 and 2

    Both statements are correct — India built an identity in software, and the services sector’s contribution keeps rising.

  3. Consider these statements — 1. As a country progresses, industry steps back in both output and employment, making way for services. 2. As a country progresses, industry itself gradually turns more service-like.
    1. Only 1
    2. Only 2
    3. Both 1 and 2
    4. Neither 1 nor 2
    Show answer

    Answer: (C) Both 1 and 2

    This shift from industry towards services, alongside economic growth, is a well-known pattern.

  4. Consider these statements — 1. Computer software holds the highest share in India’s services exports. 2. Communication services had the highest growth rate within the services sector in the 11th Five Year Plan.
    1. Only 1
    2. Only 2
    3. Both 1 and 2
    4. Neither 1 nor 2
    Show answer

    Answer: (C) Both 1 and 2

    Both statements are correct, based on the data of that period.

  5. Consider these statements — 1. e-Visas were introduced in three categories — tourist, medical and business. 2. This facility was launched for citizens of 163 countries.
    1. Only 1
    2. Only 2
    3. Both 1 and 2
    4. Neither 1 nor 2
    Show answer

    Answer: (C) Both 1 and 2

    The e-Visa scheme was indeed launched with these same three categories and 163 countries.

  6. Which of these is included in the services sector of the Indian economy — (UPPCS, 2008)
    1. Transport, storage and communication
    2. Finance, insurance, real estate and business services
    3. Community, social and personal services
    4. All of the above
    Show answer

    Answer: (D) All of the above

    All three groups, along with services linked to construction, fall within the services sector.

  7. What percentage of Foreign Direct Investment (FDI) is allowed in Indian companies publishing newspapers and periodicals dealing with news and current affairs — (IAS, 2005)
    1. 26%
    2. 49%
    3. 74%
    4. 100%
    Show answer

    Answer: (A) 26%

    FDI in publications dealing with news and current affairs is capped at 26%.

  8. Which service holds the largest share in India’s services exports
    1. Computer software
    2. Financial and non-financial services
    3. Computer hardware
    4. Legal consultancy
    Show answer

    Answer: (A) Computer software

    Computer software services have held the largest share of exports.

  9. Consider these statements about the IT sector — 1. India has built a distinct identity in this sector. 2. Besides its contribution to growth, it is also a source of skilled employment, both in India and abroad.
    1. Only 1
    2. Only 2
    3. Both 1 and 2
    4. Neither 1 nor 2
    Show answer

    Answer: (C) Both 1 and 2

    Both are correct — the IT sector has built an identity and also created skilled jobs, in India and overseas.

  10. What share of GDP does the services sector hold
    1. 30%
    2. 43.6%
    3. 53.6%
    4. 63.6%
    Show answer

    Answer: (C) 53.6%

    The services sector currently holds 53.6% of GDP, while its share of employment is only about 30%.

  1. What was the services sector’s share of GVA in the FY 2025-26 First Advance Estimates
    1. 53.6%
    2. 54%
    3. 55.3%
    4. 56.4%
    Show answer

    Answer: (D) 56.4%

    This is a record high, as reported in the Economic Survey 2025-26.

  2. What was the services sector’s average FDI share during FY2023-25
    1. 60.2%
    2. 70.2%
    3. 77.7%
    4. 80.2%
    Show answer

    Answer: (D) 80.2%

    77.7% was the pre-pandemic average (FY2016-20); it has since risen to 80.2%.

  3. According to the "India Tourism Data Compendium 2025", what is tourism's direct contribution to GDP
    1. 1.24%
    2. 2.72%
    3. 5.22%
    4. 13.34%
    Show answer

    Answer: (B) 2.72%

    The direct contribution is 2.72%; adding the multiplier effect takes it to 5.22%.

  4. What does the PRASHAD scheme focus on
    1. Coastal tourism trails
    2. Infrastructure around pilgrimage sites
    3. Building budget hotels
    4. Training tourist guides
    Show answer

    Answer: (B) Infrastructure around pilgrimage sites

    PRASHAD stands for the Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive.

  5. Which heritage sites does Budget 2026-27 plan to turn into experiential destinations using "immersive storytelling" technology
    1. The Taj Mahal, Red Fort, Agra Fort
    2. 15 archaeological sites such as Lothal, Dholavira and Sarnath
    3. Only Buddhist sites in Northeast India
    4. Only the forts of Rajasthan
    Show answer

    Answer: (B) 15 archaeological sites such as Lothal, Dholavira and Sarnath

    15 archaeological sites will be developed with this technology, alongside a Buddhist Circuit in Northeast India.

  6. According to NASSCOM, what was the IT-ITeS industry’s revenue in FY2025 (including hardware)
    1. $177 billion
    2. $197 billion
    3. $241 billion
    4. $283 billion
    Show answer

    Answer: (D) $283 billion

    $177 billion was the old 2019 figure; it now stands at $283 billion.

  7. What is a Global Capability Centre (GCC)
    1. A government IT agency
    2. An offshore unit of a multinational company handling technology, engineering and business work
    3. A new data centre certification
    4. An export subsidy scheme
    Show answer

    Answer: (B) An offshore unit of a multinational company handling technology, engineering and business work

    A GCC is an offshore unit set up by a multinational company to handle technology, engineering, analytics and business work for its global operations.

  8. What share of the world’s data centres does India hold, against its share of data generated
    1. 3% of data centres, 20% of data
    2. 20% of data centres, 3% of data
    3. 10% of both
    4. 50% of data centres, 20% of data
    Show answer

    Answer: (A) 3% of data centres, 20% of data

    India generates close to 20% of the world’s data, but holds only 3% of its data centres — about 150 out of roughly 11,000.

  9. What share of GVA do transport services contribute directly
    1. 1.2%
    2. 2.5%
    3. 4.5%
    4. 7%
    Show answer

    Answer: (C) 4.5%

    Transport’s direct contribution is about 4.5%; telecom’s is lower, at about 1.2%.

  10. By how much did Indian ports’ capacity to handle cargo grow between March 2010 and March 2019
    1. It fell by half
    2. It stayed about the same
    3. It more than doubled
    4. It quadrupled
    Show answer

    Answer: (C) It more than doubled

    Capacity rose from 628.03 MTPA (2010) to 1,452.64 MTPA (2019) — more than double.

  1. Which fact about India Post is correct
    1. It is the world’s largest postal network
    2. Most of its post offices are in cities
    3. It only handles letters and parcels
    4. It has nothing to do with MGNREGS
    Show answer

    Answer: (A) It is the world’s largest postal network

    India Post is the world’s largest postal network, with about 1.39 lakh post offices in villages, and it also helps disburse MGNREGS wages.

  2. What is expected of real estate’s share in GDP by 2047
    1. It will stay steady at 7.3%
    2. It will fall from 7.3% to 4%
    3. It will rise from 7.3% to 15.5%
    4. It will rise from 7.3% to 25%
    Show answer

    Answer: (C) It will rise from 7.3% to 15.5%

    Real estate is expected to reach $5.8 trillion by 2047, with its GDP share rising from 7.3% to 15.5%.

  3. What is the main goal of the SWAMIH Fund 2.0
    1. Building new malls
    2. Completing 1 lakh stalled housing units
    3. Building rental homes
    4. Building rural roads
    Show answer

    Answer: (B) Completing 1 lakh stalled housing units

    This ₹15,000 crore fund is meant to revive stalled affordable and middle-income housing projects.

  4. What does the "Orange Economy" rest on
    1. Mineral resources
    2. Creativity, culture and intellectual property
    3. Agricultural output
    4. Heavy industry
    Show answer

    Answer: (B) Creativity, culture and intellectual property

    In the Orange Economy, value comes from ideas, knowledge, art and cultural content, not from a solid thing.

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