Which of the following correctly explains why the tertiary sector became the largest contributor to India's G…

Question

Which of the following correctly explains why the tertiary sector became the largest contributor to India's GVA by 2017–18?
(A) The primary and secondary sectors stagnated because of lack of private investment, leaving the tertiary sector as the only growing sector.
(B) Growth in agriculture and industry increased demand for support services, rising incomes created new service demands, and IT-based services expanded rapidly.
(C) The government deliberately reduced investment in agriculture and industry to promote services.
(D) Secondary sector output fell sharply, so the tertiary sector's share automatically increased.

Accepted Answer

## Model Answer **Answer: (B)** Growth in agriculture and industry increased demand for support services, rising incomes created new service demands, and IT-based services expanded rapidly. ## Explanation The textbook (Chapter 2) lists four specific reasons for the tertiary sector's rise: (1) need for basic government services, (2) development of agriculture/industry creating demand for transport, trade, storage, (3) rising incomes driving demand for services like tourism, private hospitals, and (4) rapid growth of IT/ICT-based services. Option B captures reasons 2, 3, and 4 accurately. Options A, C, and D are factually incorrect — all three sectors grew, the government did not deliberately reduce investment in primary/secondary, and secondary output did not fall.

Social Science (087) — AI-generated practice question