The services sector is also known as
A Primary sector
B Secondary sector
C Tertiary sector
D Quaternary sector
Services provide support activities like trade, transport, banking, and communication.
The services sector contributes the largest share to
A Employment
B Exports only
C GDP
D Agriculture
Services contribute the highest proportion to India’s GDP.
Rapid growth of services sector indicates
A Industrial stagnation
B Structural transformation
C Agricultural dominance
D Capital shortage
Development shifts output from agriculture to industry and services.
Which service has emerged as a global strength of India?
A Tourism
B Information Technology
C Retail trade
D Transport
IT and IT-enabled services made India a global outsourcing hub.
Growth of IT sector helped India mainly by
A Reducing literacy
B Increasing foreign exchange earnings
C Increasing imports
D Reducing exports
Software exports generate large foreign exchange.
Which city is known as the IT capital of India?
A Mumbai
B Hyderabad
C Bengaluru
D Chennai
Bengaluru hosts major IT firms and startups.
Expansion of communication services contributes to
A Digital divide
B Market integration
C Reduced connectivity
D Lower productivity
Better communication integrates markets and regions.
Tourism contributes to the economy by
A Reducing employment
B Increasing foreign exchange and jobs
C Increasing imports
D Raising population
Tourism creates jobs and earns foreign currency.
Medical tourism in India has grown mainly due to
A High cost of treatment
B Quality healthcare at low cost
C Limited infrastructure
D Poor connectivity
Affordable quality healthcare attracts foreign patients.
Banking sector is important for economic growth because it
A Reduces savings
B Mobilizes savings and provides credit
C Increases inequality
D Restricts investment
Banks channel savings into productive investment.
Financial inclusion aims at
A Restricting banking access
B Providing banking services to all
C Increasing moneylenders
D Reducing digital payments
Inclusion ensures access to credit, savings, and insurance.
Which initiative promotes digital payments in India?
A MNREGA
B PM-KISAN
C UPI
D Green Revolution
UPI enables instant digital transactions.
Services sector growth is criticized because it
A Is labour-intensive
B Creates jobless growth
C Increases exports
D Raises GDP
Services growth has not generated enough jobs for unskilled labour.
Which service employs the largest workforce in India?
A IT services
B Banking
C Trade and transport
D Tourism
Trade and transport employ large numbers of workers.
Economic reforms in India were introduced in
A 1980
B 1985
C 1991
D 2000
Balance of payments crisis led to reforms in 1991.
Liberalization refers to
A Increasing government control
B Reducing trade barriers and controls
C Nationalization
D Expansion of public sector
Liberalization removes restrictions on economic activities.
Privatization means
A Transfer of ownership to government
B Expansion of public enterprises
C Transfer of ownership to private sector
D Trade liberalization
Privatization reduces state role in production.
Globalization integrates Indian economy with
A Local markets
B Rural markets
C World economy
D Regional economy only
Globalization increases cross-border trade and investment.
One major reason for 1991 reforms was
A Food shortage
B Balance of payments crisis
C Population explosion
D Agricultural failure
Foreign exchange crisis forced policy changes.
Which institution supported India during 1991 crisis?
A World Bank and IMF
B WTO
C UNDP
D FAO
IMF and World Bank provided financial assistance.
LPG reforms aimed at
A Increasing controls
B Promoting efficiency and competition
C Reducing exports
D Expanding subsidies
Market-oriented reforms improved efficiency.
Trade liberalization includes
A Higher tariffs
B Import quotas
C Reduction in tariffs
D Import bans
Lower tariffs encourage free trade.
Which sector benefited most from globalization?
A Agriculture
B Manufacturing
C Services
D Mining
IT and services gained global markets.
Foreign Direct Investment (FDI) refers to
A Portfolio investment
B Short-term capital
C Long-term investment with control
D Foreign aid
FDI involves ownership and management control.
FDI helps host country by
A Increasing imports only
B Bringing capital, technology, and skills
C Reducing employment
D Increasing trade deficit
FDI boosts growth and productivity.
Which sector attracted maximum FDI in India?
A Agriculture
B Mining
C Services
D Handicrafts
Services sector receives the highest FDI inflows.
FDI differs from FPI because FDI
A Is short-term
B Is speculative
C Involves management control
D Avoids risk
FDI includes active participation in management.
A major criticism of globalization is that it
A Increases efficiency
B Promotes competition
C Increases inequality
D Enhances technology
Benefits may be unevenly distributed.
Which reform reduced licensing requirements?
A Nationalization
B Liberalization
C Privatization
D Globalization
Liberalization dismantled license raj.
Which sector faced maximum competition after reforms?
A Public sector
B Private manufacturing
C Services
D Agriculture
Domestic firms faced global competition.
Capital account liberalization allows
A Free movement of goods
B Free movement of services
C Free movement of capital
D Free movement of labour
It permits cross-border capital flows.
Which outcome is associated with privatization?
A Higher fiscal burden
B Improved efficiency
C Reduced competition
D Increased monopoly
Private ownership improves efficiency.
Which reform encourages competition?
A Licensing
B Protectionism
C Liberalization
D Nationalization
Removing barriers promotes competition.
One positive impact of reforms on Indian economy is
A Decline in growth
B Higher growth rate
C Reduced exports
D Capital shortage
Reforms accelerated economic growth.
Which group faced adjustment problems after reforms?
A IT professionals
B Exporters
C Small-scale industries
D MNCs
Small units struggled with competition.
Services sector supports agriculture and industry by
A Reducing credit
B Providing transport, banking, and trade
C Increasing costs
D Limiting markets
Services facilitate production and exchange.
Which reform increased role of market forces?
A Nationalization
B Licensing
C Liberalization
D Planning
Market mechanisms replaced controls.
Globalization increased India’s integration with
A SAARC only
B ASEAN only
C World trade and finance
D Local markets
India became part of global value chains.
FDI policy liberalization aimed to
A Reduce foreign investment
B Protect domestic firms
C Attract foreign capital
D Increase tariffs
Liberal norms encourage inflows.
Which service sector activity promotes rural connectivity?
A IT parks
B Digital banking
C Stock markets
D Corporate services
Digital banking expands rural financial access.
Reforms reduced fiscal burden by
A Expanding subsidies
B Disinvestment of PSUs
C Increasing controls
D Nationalization
Selling stakes reduced government expenditure.
Which factor made India attractive for IT services?
A High wages
B Skilled English-speaking workforce
C Trade barriers
D Capital scarcity
Human capital supported IT growth.
A drawback of service-led growth is
A Low GDP contribution
B Limited employment for unskilled labour
C Low exports
D Capital shortage
Services need skilled labour.
Which reform focused on reducing public sector dominance?
A Liberalization
B Privatization
C Globalization
D Planning
Privatization reduced state ownership.
FDI inflows help balance of payments by
A Increasing imports
B Increasing foreign exchange reserves
C Reducing exports
D Increasing trade deficit
Capital inflows strengthen reserves.
Which sector gained most from digital revolution?
A Agriculture
B Manufacturing
C Services
D Mining
IT, banking, and communication expanded rapidly.
Economic reforms aimed at improving
A Self-sufficiency only
B Efficiency and competitiveness
C Central planning
D Import substitution
Market reforms improved productivity.
Which reform increased consumer choice?
A Licensing
B Protectionism
C Liberalization
D Nationalization
Open markets expanded choices.
Globalization increased India’s exposure to
A Domestic shocks only
B International competition
C Central planning
D Import bans
Firms faced global competition.
The overall impact of economic reforms on India can be best described as
A Negative
B Mixed
C Completely unsuccessful
D Insignificant
Reforms improved growth but raised inequality concerns. ; mark question from 1 to 50