Growth & Development — Indian Economy

Q.1

WBCS prelims 2012

Point out the main objective of creating “SEZ” (Special Economic Zone) in India :

A. Creating of special tax free growth points in the economy mainly to boost up exports

B. Creation of strong industrial units which would provide employment facilities

C. To give special preference to some industrial units

D. None of the above

Explanation

Why Correct: The primary objective of SEZs is to create special tax-free growth points to boost exports, as demonstrated by the first SEZ at Kandla in 1965.
Distractor Analysis: Employment generation is a secondary benefit. Special preference describes industrial subsidies.
Takeaway: SEZ Act 2005 governs SEZs; exports from SEZs are duty-free.

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Q.2

WBCS prelims 2007

Which of the following experienced the fastest expansion during the plan period in India?

A. Agriculture

B. Industry

C. Services

D. None of the above

Explanation

Why Correct: India's services sector recorded the fastest expansion during the plan period (1951-2017), averaging around 7% annual growth, outpacing agriculture and industry.
Distractor Analysis: Agriculture grew at about 2.8% per annum, constrained by technology and structure. Industry grew at around 5-6% per annum, slower than services.
Takeaway: Services sector dominance in GDP growth became pronounced after the 1991 economic reforms.

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Q.3

WBCS prelims 2003

In a developed economy the major share of employment originates in the

A. Primary sector

B. Secondary sector

C. Tertiary sector

D. None of the above

Explanation

Why Correct: Developed economies have a dominant tertiary (service) sector that accounts for the largest share of employment and GDP.
Distractor Analysis: The primary sector (agriculture, mining) employs a very small fraction of the workforce in developed countries. The secondary sector (manufacturing) has declined in employment share due to automation and outsourcing. None of the above is incorrect because the tertiary sector clearly dominates.
Takeaway: This follows the Clark-Fisher model: employment shifts from primary to secondary to tertiary as an economy develops.

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Q.4

WBCS prelims 2002

In the nineties

A. Growth rate of the primary sector was highest

B. Growth rate of the secondary sector was highest

C. Growth rate of the tertiary sector was highest

D. All the three sectors grew more or less at the same rate

Explanation

Why Correct: During the 1990s, India's tertiary sector (services) recorded the highest growth rate, driven by IT, telecommunications, and financial services.
Distractor Analysis: The primary sector includes agriculture and allied activities, which grew slower. The secondary sector (manufacturing) also grew but less than services. The sectors did not grow at the same rate; services outperformed.
Takeaway: India's post-1991 reforms boosted the services sector, making it the fastest-growing sector.

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