Which one of the following is not a driving factor for the increase in the contribution of the service sector in India?

Correct answer: (d) Decrease in core industries

Explanation

Services now produce more than half of India's GVA. The main drivers of their rise are:

• Globalisation and liberalisation after 1991, which opened the economy and made India a large exporter of IT and IT-enabled services;
• Technological advancement: telecom, the internet and digital payments created new services and made existing ones cheaper;
• Urbanisation and rising incomes, which raise demand for banking, retail, transport, health care, education and entertainment.

A decrease in core industries is not a driver: industry and services support each other, since industry needs banking, transport, insurance and communication services.