Which among the following statements regarding India's services export is/are not correct? 1. India's share in global services export has more than doubled, reaching around 4.3 percent in 2023 from 1.9 percent in 2005. 2. 'Travel' and 'Transport' services represent areas where India holds a relatively larger share in global export, at 10.2 percent and 8.5 percent respectively in 2023. Select the answer using the code given below.
- (a)1 only
- (b)2 only
- (c)Both 1 and 2
- (d)Neither 1 nor 2
Correct — B, 2 only. The stem asks which statements are not correct, so the task is to find the false one. Statement 1 is accurate and is close to a quotation from the Economic Survey 2024-25, which records that India's share in global services exports has more than doubled, reaching around 4.3 per cent in 2023 from 1.9 per cent in 2005. Statement 2 inverts the Survey. What the Survey actually says is that travel and transport are the categories where India holds a relatively smaller share of global exports, at about 2.1 per cent and 2.2 per cent in 2023. The figure of 10.2 per cent belongs to a different category altogether — telecommunications, computer and information services, where India is the world's second largest exporter — and the second figure has been altered as well. So statement 2 is the one that is not correct, and the answer is 2 only.
- (a)1 only — Names statement 1 as the false one, but its two figures and both years match the Economic Survey exactly.
- (c)Both 1 and 2 — Calls both statements false. Statement 1 is correct, so this over-marks.
- (d)Neither 1 nor 2 — Calls both statements correct, which is the trap. Statement 2 reads plausibly because the figures are real numbers from the same passage of the Survey — they have simply been attached to the wrong service categories and the word 'smaller' has been changed to 'larger'.
India's services exports are concentrated in a few high-value categories. The Economic Survey groups them and reports India's share of the world market in each: about 10.2 per cent in telecommunications, computer and information services, where India ranks second globally, and about 7.2 per cent in other business services, where it ranks third. Travel and transport, the categories tied to tourism and shipping, are where India is weakest at roughly two per cent each, and financial services also lag the global average. The overall share of 4.3 per cent in 2023 is the weighted result of this uneven profile.
Negative stems are the first hazard here — 'is/are not correct' means the answer names the false statement, and a candidate reading past the word 'not' will mark the mirror image of the right answer. The second hazard is subtler: the false statement is built from genuine numbers moved to the wrong rows. This is the standard way an Economic Survey item is made hard, and the defence is to remember the shape of India's services profile rather than isolated percentages — software and business services strong, travel and transport weak. Any statement that describes travel or transport as an area of Indian strength is describing the wrong country.
- India's share in global services exports rose from 1.9 per cent in 2005 to about 4.3 per cent in 2023.
- In telecommunications, computer and information services India holds about 10.2 per cent of world exports, ranking second.
- In other business services India holds about 7.2 per cent of world exports, ranking third.
- Travel and transport are relative weaknesses, at about 2.1 per cent and 2.2 per cent of world exports in 2023.
- India's share is about 3.4 per cent in personal, cultural and recreational services and 3.5 per cent in construction services.
Statement 2 takes the 10.2 per cent from the top row and attaches it to the bottom two, then calls the share larger rather than smaller.
- Missing the word 'not' in the stem and marking the complementary option.
- Accepting a plausible figure because it appears in the same source, when it belongs to a different category.
- Assuming tourism must be a major Indian services export because India is a large tourist destination.
Asked as a negative-stem statement pair drawn from the Economic Survey, with the false statement built by moving real figures to the wrong service categories.
With reference to Balance of Payments, which of the following constitutes/constitute the Current Account? 1. Balance of trade 2. Foreign assets 3. Balance of invisibles 4. Special Drawing Rights Select the correct answer using the code given below.
- (a) 1 only
- (b) 2 and 3
- (c) 1 and 3
- (d) 1, 2 and 4
Answer(c) 1 and 3
Where services exports sit in the national accounts. They are the largest part of the balance of invisibles, which is why a rising services share shows up directly in the current account.
- practice — not a real PYQ
In which services category is India the world's second largest exporter?
- (a)Travel
- (b)Transport
- (c)Telecommunications, computer and information services
- (d)Financial services
Answer(c) Telecommunications, computer and information services — with about a tenth of world exports.
- practice — not a real PYQ
India's share in global services exports in 2023 was approximately
- (a)1.9 per cent
- (b)4.3 per cent
- (c)8.5 per cent
- (d)10.2 per cent
Answer(b) 4.3 per cent — up from 1.9 per cent in 2005.