In the year 2022-23, contribution of which sub-sector in Gross State Value Added (GSVA) at current prices of service sector of Rajasthan was maximum ?

Correct — option (2), Trade, Hotels and Restaurants.

Rajasthan's Economic Review 2022-23 breaks down the service sector's GSVA at current prices for 2022-23 (advance estimates), a total of ₹5.73 lakh crore.

It says: "In year 2022-23, trade, hotels & restaurants contributed around 27.69 per cent of the GSVA in the service sector, followed by real estate ownership of dwelling & professional services with a share of 24.62 per cent."

The other shares it gives are other services 19.57 per cent, transport, storage and communication 11.78 per cent, financial services 9.27 per cent and public administration 7.07 per cent.

The largest is Trade, Hotels and Restaurants, at ₹1,58,750 crore in the Review's Appendix Table 3.

The idea to remember: within Rajasthan's services in 2022-23, trade, hotels & restaurants (27.69 per cent) led real estate & professional services (24.62 per cent).

Why the others are wrong

• (1)
  Transport, Storage & Communication — Transport, storage and communication had 11.78 per cent of service-sector GSVA in 2022-23, fourth of the six sub-sectors, well behind trade, hotels & restaurants (27.69 per cent).

  It ranks higher on another measure: at constant (2011-12) prices it was estimated to grow 15.95 per cent, second only to trade, hotels & restaurants (19.73 per cent).

• (3)
  Real Estate, Ownership of dwellings & professional services — Real estate, ownership of dwellings & professional services came second, at 24.62 per cent of service-sector GSVA in 2022-23.

  It was close behind trade, hotels & restaurants (27.69 per cent), about 3 percentage points lower. In ₹ terms the Review's Appendix Table 3 gives ₹1,41,117 crore against ₹1,58,750 crore.

• (4)
  Financial Services — Financial services had 9.27 per cent of service-sector GSVA in 2022-23 (₹53,148 crore), fifth of the six sub-sectors.

  Only public administration, at 7.07 per cent, was smaller. At constant prices, financial services were estimated to grow 6.40 per cent.

Gross State Value Added (GSVA) at basic prices measures the value a state's producers add. Adding taxes on products and subtracting subsidies on products gives GSDP. The Economic Review groups GSVA into agriculture, industry and services.

The service sector is itself split into sub-sectors: trade, hotels & restaurants; transport, storage & communication; financial services; real estate, ownership of dwellings & professional services; public administration; and other services.

A share "at current prices" compares values in each year's own prices. It answers which sub-sector is largest in that year; growth "at constant prices" answers which is expanding fastest in real terms.

Key facts

• Economic Review 2022-23: service-sector GSVA of Rajasthan in 2022-23 (advance estimates) was ₹5.73 lakh crore at current prices.
• Shares within services, 2022-23: trade, hotels & restaurants 27.69; real estate & professional services 24.62; other services 19.57 per cent.
• Also within services: transport, storage & communication 11.78; financial services 9.27; public administration 7.07 per cent.
• Services formed 43.74 per cent of Rajasthan's total GSVA at current prices in 2022-23, the largest of the three broad sectors.
• At constant prices, trade, hotels & restaurants were estimated to grow 19.73 per cent in 2022-23, the fastest of the service sub-sectors.

Common traps

• Share within services is not share of the whole economy. Trade, hotels & restaurants were 27.69 per cent of service GSVA but 12.11 per cent of total GSVA in 2022-23, behind livestock (13.44) and crops (13.32).
• "Hotels" is the small part of the name. Appendix Table 3 gives trade and repair services ₹1,54,334 crore and hotels & restaurants ₹4,417 crore of the ₹1,58,750 crore total for 2022-23.
• The order changes by year. In Appendix Table 4, real estate & business services (11.02 per cent of GSVA) were ahead of trade, hotels & restaurants (10.53 per cent) in 2020-21; the year in the stem decides.

• practice — not a real PYQ

  According to Rajasthan's Economic Review 2022-23, which sub-sector had the second largest share in the service sector's GSVA at current prices in 2022-23?

  • (a)Other services
  • (b)Real estate, ownership of dwellings & professional services
  • (c)Transport, storage & communication
  • (d)Public administration
  Answer(2) — The Review gives real estate, ownership of dwellings & professional services 24.62 per cent, behind only trade, hotels & restaurants (27.69). Option (1) had 19.57, option (3) 11.78 and option (4) 7.07 per cent.
• practice — not a real PYQ

  As per the Economic Review 2022-23, which service sub-sector of Rajasthan was estimated to grow fastest at constant (2011-12) prices in 2022-23?

  • (a)Trade, hotels & restaurants
  • (b)Transport, storage & communication
  • (c)Real estate, ownership of dwellings & professional services
  • (d)Financial services
  Answer(1) — The Review estimates growth of 19.73 per cent for trade, hotels & restaurants. Option (2) was estimated at 15.95, option (3) at 9.41 and option (4) at 6.40 per cent.