UPSC Prelims Marathon 25 September - Services sector (Insurance, Aviation, Tourism, Issues and potential of services sector, Government policies etc.

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We are posting prelims marathon MCQs for today. In this initiative, you can attempt 10 subjectwise MCQs daily. Daily Quiz UPSC Prelims Marathon 25 September Services sector (Insurance, Aviation, Tourism, Issues and potential of services sector, Government policies etc.

For schedule, refer to the archive link given below. Best UPSC institute In Delhi,

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Wrong Answer : -0.66

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Question No. 1

Consider the following statements regarding the performance of the services sector in India:
1.The growth in India’s services exports has played a crucial role in strengthening the country’s external balance.
2.Initiatives like the Open Network for Digital Commerce (ONDC) are helping to make the digital transformation of the services sector more inclusive.
3.India’s service sector is primarily comprised of a few large, well-established multinational corporations.
Which of the statements given above are correct?

A1 only

B1 and 2 only

C2 and 3 only

D1, 2 and 3

Question No. 2

In how many of the above rows is the given information correctly matched?

AOnly one

BOnly two

CAll the three

DNone

Question No. 3

In the context of recent bilateral trade agreements involving India’s services sector, consider the following statements:
1.The India-UK Comprehensive Economic and Trade Agreement (CETA), finalized in May 2025, is projected to boost annual bilateral trade by £25.5 billion, with significant gains for India’s IT/ITeS and financial services exports.
2.The US-India bilateral trade agreement terms of reference, announced in April 2025, prioritize tariff reductions on goods but exclude commitments on services like professional and educational sectors.
3.The UK-India FTA extends services commitments to Crown Dependencies, enabling enhanced market access for Indian audiovisual and related services.
Which of the statements given above are correct?

A1 and 2 only

B2 and 3 only

C1 and 3 only

D1, 2 and 3

Question No. 4

Consider the following statements:
Statement I: The services sector employs about 30 percent of India’s workforce, with the IT/ITeS sub-sector adding 60,000 jobs in FY24 to reach 5.43 million employees.
Statement II: Global Capability Centers (GCCs) in India, employing nearly 1.9 million professionals as of FY24, face challenges like inadequate supervision and compliance gaps in offshore work models.
Which one of the following is correct in respect of the above statements?

ABoth Statement I and Statement II are correct and Statement II explains Statement I

BBoth Statement I and Statement II are correct but Statement II does not explain Statement I

CStatement I is correct but Statement II is not correct

DStatement I is not correct but Statement II is correct

Question No. 5

Consider the following statements:
1.The Global Services PMI Business Activity Index rose to 53.8 in December 2024, indicating expansion for the 23rd consecutive month, though services trade growth slowed to 5 percent year-on-year in Q1 2025.
2.India’s services exports grew by 12.8 percent in April-November FY25, outpacing the 7 percent rise in the first half of 2024, with the country ranking seventh globally at 4.3 percent share.
Which of the statements given above is/are correct?

A1 only

B2 only

CBoth 1 and 2

DNeither 1 nor 2

Question No. 6

With reference to restrictions and regulations in India’s services sector, which of the following is the most appropriate measure recommended in the Economic Survey 2024-25 to enhance sectoral progress?

AImposition of stricter FDI caps in insurance to protect domestic players

BSimplifying procedures and regulations alongside skilling the labor force to boost buoyancy in services sub-sectors

CEnhancing tariff barriers on services imports to prioritize merchandise trade

DMandating localization of data for all digital services without exceptions

Question No. 7

Consider the following pairs:
Sub-sector – Trend Growth Rate (FY13 to FY23)
I. Information and computer-related services – 12.8 percent
II. Public administration services – 11-12 percent share in total services GVA
III. Trade, repair, hotels, and restaurants – Above 8 percent average post-pandemic
In how many of the above rows is the given information correctly matched?

AOnly one

BOnly two

CAll the three

DNone

Question No. 8

In the context of India’s services sector performance, consider the following statements:
1.HSBC’s India Services PMI remained above the 60 mark for the first five months of FY25, reflecting strong demand in finance and insurance sub-sectors.
2.The sector’s real GVA growth averaged 8.3 percent from FY23 to FY25, with services exports as a percentage of services GVA (net of public administration) peaking at 22 percent in FY23.
Which of the statements given above is/are correct?

A1 only

B2 only

CBoth 1 and 2

DNeither 1 nor 2

Question No. 9

Consider the following statements:
Statement I: Total outstanding bank credit to the services sector stood at ₹48.5 lakh crore as of November 2024, with year-on-year growth at 13 percent, led by computer software at 22.5 percent.
Statement II: FDI equity inflows to services reached USD 5.7 billion in April-September FY25, with insurance services capturing over 62 percent of the total.
Which one of the following is correct in respect of the above statements?

ABoth Statement I and Statement II are correct and Statement II explains Statement I

BBoth Statement I and Statement II are correct but Statement II does not explain Statement I

CStatement I is correct but Statement II is not correct

DStatement I is not correct but Statement II is correct

Question No. 10

How many of the above pairs are correctly matched?

AOnly one

BOnly two

CAll three

DNone

Total Number of Questions :

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Total Correct :

Total Wrong :

For schedule, refer to the archive link given below. Best UPSC institute In Delhi,

For the Prelims Marathon archive – click here,

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