Which sector is likely to show highest increase in the real GSVA (Gross State Value Added) at constant basic prices (2011-12) in the year 2022-23 over previous year ?
- (1)None of these
- (2)Service sector
- (3)Industry sector
- (4)Agriculture sector
Answer
Why
Correct — option (2), Service sector.
The stem asks which sector is likely to show the highest increase in real GSVA at constant (2011-12) basic prices in 2022-23. "Likely" fits the source: Rajasthan's Economic Review 2022-23 gives advance estimates (AE) for that year.
The Review's sector-wise growth rates at constant (2011-12) basic prices for 2022-23 (AE) are: agriculture 5.22 per cent, industry 6.32 per cent and services 10.74 per cent.
Services lead, so the answer is Service sector. Industry comes second and agriculture third. Real GSVA as a whole was estimated to rise 7.88 per cent, from ₹6.80 lakh crore in 2021-22 to ₹7.33 lakh crore.
Read as an absolute rise, the order is the same. Worked out from the Review's Table 1.4, services added ₹31,106 crore (₹2,89,602 crore to ₹3,20,708 crore), industry ₹12,106 crore and agriculture ₹10,375 crore.
Read as a change in share, services still lead. The Review calls a sector's share of GSVA its "contribution".
Worked out from Table 1.4, the 2021-22 shares were 29.22 per cent (agriculture), 28.17 (industry) and 42.61 (services). Set against the Review's 2022-23 shares of 28.50, 27.76 and 43.74, only services gained.
The idea to remember: in 2022-23 (AE) services grew fastest at constant prices, 10.74 per cent, ahead of industry (6.32) and agriculture (5.22).
Why the others are wrong
- (1)None of these — This would fit only if none of the named sectors topped the growth figures. The Economic Review 2022-23 gives a real GSVA growth rate for each of its three broad sectors, and the services figure, 10.74 per cent, is the highest.
So one of the named options does answer the stem. The Review's sector-wise table has three rows: agriculture, industry and services.
- (3)Industry sector — Industry came second. The Review estimates industry's real GSVA at ₹2,03,576 crore in 2022-23, a growth of 6.32 per cent, below the 10.74 per cent for services.
Industry here covers mining and quarrying, manufacturing, electricity, gas, water supply and other utility services, and construction. Its share of real GSVA fell from 32.69 per cent in 2011-12 to 27.76 per cent in 2022-23.
- (4)Agriculture sector — Agriculture grew the slowest of the three in 2022-23 (AE): real GSVA of ₹2,08,989 crore, up 5.22 per cent.
The same Review's series shows agriculture growing fastest in other years: 2019-20 (12.30 per cent) and 2020-21 (5.69 per cent), when industry and services grew less or shrank. The sector covers crops, livestock, forestry and logging, and fishing.
Concept
Gross Value Added (GVA) is the value of output minus the value of inputs used up in producing it. For a state it is called Gross State Value Added (GSVA). In MoSPI's national accounts statements, GDP is GVA at basic prices plus net taxes on products.
Estimates at current prices mix two effects: changes in the volume of goods and services and changes in their prices. Constant-price (real) estimates value output at the prices of a fixed base year, now 2011-12, so growth reflects volume.
"Gross" means consumption of fixed capital has not been deducted; subtracting it gives net estimates such as NSDP.
RPSC's 2023 syllabus lists "Macro overview of Economy." and "Growth, Development and Planning." under Economy of Rajasthan. The Economic Review, published by the Directorate of Economics and Statistics, Rajasthan, reports the state's domestic product estimates at current and constant prices.
Each year's figures move through stages. The Review 2022-23 marks 2020-21 as Revised Estimates-II, 2021-22 as Revised Estimates-I and 2022-23 as Advance Estimates, so later editions can revise a year's growth rate.
The Review also records a shift in structure: services' share of GSVA rose from 38.75 per cent in 2011-12 to 43.74 per cent in 2022-23.
Key facts
- Economic Review 2022-23 (advance estimates): real GSVA growth in 2022-23 was agriculture 5.22%, industry 6.32% and services 10.74%.
- Real GSVA at constant (2011-12) basic prices: ₹7.33 lakh crore in 2022-23 (AE), up 7.88 per cent from ₹6.80 lakh crore in 2021-22.
- Real GSDP of Rajasthan grew 8.19 per cent in 2022-23 (AE); the Review gives All-India GDP growth of 7.0 per cent (first advance estimates).
- Shares of real GSVA in 2022-23 (AE): agriculture 28.50%, industry 27.76%, services 43.74%.
- In 2021-22 (Revised Estimates-I) real GSVA grew 6.85% in agriculture, 11.30% in industry and 13.13% in services.
At constant (2011-12) basic prices. Source: Economic Review 2022-23, Government of Rajasthan, Chapter 1 (Table 1.4 and Figure 1.4).
Study next
Common traps
- Mixing price bases. At current prices the Review gives 2022-23 growth of 13.84% (agriculture), 15.02% (industry) and 17.11% (services); at constant prices the figures are 5.22, 6.32 and 10.74.
- Treating share and growth as one measure. Agriculture's share of real GSVA (28.50%) is larger than industry's (27.76%), yet industry grew faster in 2022-23.
- Ignoring the year. In the same series agriculture grew fastest in 2019-20 and 2020-21, while services led in 2021-22 and 2022-23.
A question can ask which sector grew fastest, or slowest, in a given year's estimates, at current or at constant prices.
A question can also list growth rates or sector shares and ask which figure belongs to which sector, or ask the state's overall GSDP growth for the year.
Related PYQs
UnlockIAS will link similar questions from RAS Pre 2021 and 2018 here once those papers are published on this site.
Practice
- practice — not a real PYQ
According to the advance estimates in Rajasthan's Economic Review 2022-23, what was the service sector's share of real GSVA at constant (2011-12) basic prices in 2022-23?
- (a)28.50 per cent
- (b)27.76 per cent
- (c)43.74 per cent
- (d)38.75 per cent
Answer(3) — The Review puts services at 43.74 per cent in 2022-23. Option (1) is agriculture's share and option (2) is industry's share for the same year. Option (4) is the services share in 2011-12. - practice — not a real PYQ
As per the advance estimates in Rajasthan's Economic Review 2022-23, the growth rate of real GSDP at constant (2011-12) prices in 2022-23 was
- (a)7.00 per cent
- (b)7.88 per cent
- (c)8.19 per cent
- (d)11.36 per cent
Answer(3) — Real GSDP rose from ₹7,38,922 crore to ₹7,99,449 crore, 8.19 per cent. Option (1) is the All-India GDP growth the Review cites, option (2) is the growth of real GSVA, and option (4) is Rajasthan's real GSDP growth in 2021-22.