AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
The gap between GVA growth (14 times) and employment growth (only 5 times) in the tertiary sector reveals that growth in services was not employment-intensive. Production rose sharply, but did not generate proportional jobs.
This happened because not all services grew equally. High-skilled services like IT and finance grew rapidly with few workers, while a large number of workers remained engaged in low-productivity services — small shops, street vendors, repair persons — barely earning a living. These workers are often underemployed: apparently working but contributing less than their potential. Thus, service sector growth benefited a limited section and did not translate into adequate productive employment for the majority.
Source: Chapter 2 — Sectors of the Indian Economy; 'Rising Importance of the Tertiary Sector' and 'Where are most of the people employed?'
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