Economy · X-Factor Notes
Tertiary Sector (Services, Finance, and Governance) revision notes for UPPCS Prelims.
63 revision facts
| Concept | What to remember | Asked in UPPCS |
|---|---|---|
| Definition | The Tertiary sector is also called the Services sector. It consists of industries that provide services. | U.P. U.D.A./L.D.A. (Pre) 2002; UPPCS (Mains) 2004 |
| Inclusions | Includes Trade, Hotel, Transport, Communication, Banking and Finance, Insurance, Real estate, Public Administration and Defence, Education, Entertainment, and Tourism. | U.P. U.D.A./L.D.A(Pre) 2002; UPPCS (Mains) 2004; U.P. R.O./A.R.O. (Mains) 2017 |
| Largest Source of National Income | The Service Sector is the largest source of National Income in India. | U.P. R.O./A.R.O. (Pre) 2021; UPPCS (Mains) 2004 |
| Descending Order of GDP Contribution | The correct sequence in decreasing order is Services(55.3) > Industry(28.7%) > Agriculture(16%) | UPPCS (Mains) 2017; UPPCS (Pre) 2005 |
| Share in GVA (Recent Data) | The services sector (excluding construction) contributed 55% (2024-25). | U.P.R.O./A.R.O. (Pre) 2017; U.P. P.C.S. (Mains) 2014 |
| Trend in Share of GDP | Since 1980, the share of the tertiary sector in the total GDP of India has shown an increasing trend. | I.A.S. (Pre) 1999 |
| Growth Rate (2015-2025) | The services sector consistently contributed over 50% of GDP and GVA, with growth rates mostly ranging from 6% to 9% annually. | UPPCS (Mains) 2007 |
| Workforce Characteristic | Work force largely in the tertiary sector is a feature of a developed economy. | UPPCS (Mains) 2017 |
| Highest FDI Inflow Attractor | The Services sector has historically attracted the highest FDI inflows into India, accounting for almost four-fifth of total FDI. | UPPCS (Spl.) (Mains) 2008; I.A.S. (Pre) 2001 |
| Concept | What to remember | Asked in UPPCS |
|---|---|---|
| National Income Estimation | Estimated by the National Statistical Office (NSO) (formed by merger of CSO and NSSO in 2019). | UPPCS (Pre) 1995, 2006 |
| National Income Base Year | Currently 2011-12 (changed from 2004-05). | UPPCS (Mains) 2015, 2016 |
| Economic Survey Publisher | Prepared and published annually by the Ministry of Finance, Government of India. | I.A.S. (Pre) 1998; UPPCS (Mains) 2015 |
| Sustainable Development Chapter | A new chapter on sustainable development and climate change was first introduced in the Economic Survey of 2011-12. | UPPCS (Pre) (Re-Exam) 2015 |
| Planning Commission Establishment | Set up in March, 1950. | |
| NITI Aayog Formation | Established on Jan. 1, 2015, replacing the Planning Commission. | I.A.S. (Pre) 2015; Chhattisgarh P.C.S. (Pre) 2014 |
| NITI Aayog Nodal Role | Nodal Institution for implementation of Sustainable Development Goals (SDG) in India. | [Implied from contemporary context] |
| National Development Council (NDC) Establishment | Constituted on 6 August 1952. | UPPCS (Spl.) (Pre) 2008 |
| NDC Function | Mainly concerned with the approval of Five Year Plans. | UPPCS(Pre) 2001, 2003; |
| Finance Commission Role | Distribution of Taxes between Centre and States in India. | U.P. R.O./A.R.O. (Re-Exam) 2023 |
| 14th FC Tax Share | Recommended 42 percent share of Central tax revenue to States. | |
| 15th FC Bihar Share | Share of Bihar in the divisible pool of Central Taxes is 10.06%. | |
| Budget Reforms (2017-18) | Included the merger of Railway Budget with the Union Budget and the elimination of the classification of expenditure into ‘Plan’ and ‘Non-Plan’. | |
| Largest Revenue Expenditure Item | Interest Payments is the largest item of revenue expenditure of the Union government. | I.A.S. (Pre) 2015; UPPCS (Pre) 2005; UPPCS (Mains) 2006 |
| Deficit Reduction Measures | Reducing revenue expenditure and Rationalizing subsidies. | I.A.S. (Pre) 2016, 2015 |
| Fiscal Policy Foundation | Its ascendancy is attributed to the Keynesian policy prescription. | Uttarakhand P.C.S. (Pre) 2012 |
| Constitutional Status of Planning | Economic Planning is a subject in the Concurrent List. | U.P. Lower Sub. (Pre) 2002; Uttarakhand PCS (Pre) 2002 |
| Concept | What to remember | Asked in UPPCS |
|---|---|---|
| Poverty Estimation Method | Poverty estimation in India is based on Household Consumption Expenditure. | U.P. P.C.S. (Pre) 2020; U.P. R.O./A.R.O. (Mains) 2013 |
| Tendulkar Committee | Constituted in 2005 to set new standards for poverty estimation. | U.P. U.D.A./L.D.A. (Pre) 2013 |
| MPI Developer and Indicators | Developed by OPHI and UNDP. Uses Health, Education, and Living Standard indicators. | UPPCS (Pre) 2019; I.A.S. (Pre) 2012; I.A.S. (Pre) 2019 |
| HDI Indicators | Human Development Index uses Income level, Education, and Life expectancy. | UPPSC Pre-2024; |
| HDI Developer | Developed by Mahbub-ul-Haq. | Uttarakhand P.C.S. (Pre) 2010 |
| GNH Adoption | Bhutan adopted ‘Gross National Happiness’ as an index of the well-being of its citizens. | UPPCS (Mains) 2009; Uttarakhand P.C.S. (Mains) 2006 |
| Inclusive Growth Objectives | Inclusive growth is furthered by Promoting SHGs, Promoting MSMEs, and Implementing the Right to Education Act. | I.A.S. (Pre) 2011 |
| Right to Education (Age) | Constitutional provision for children between 6 – 14 years. | UPPCS (Pre) 2016, 2015 |
| Mid-day Meal Scheme Launch | Started in the year 1995 to promote the Universalization of primary education. | UPPCS (Mains) 2008, 2006 |
| MDM Renaming | Renamed as P.M. Poshan Scheme in 2021. | UPPCS (Mains) 2004; UPPSC Prelims-2023 |
| Village Health Worker | Under NRHM, the village level health worker is known as ASHA (Accredited Social Health Activist). | UPPCS (Mains) 2017 |
| PM Jan Arogya Yojana Funding | Expenses are shared between Centre and State in 60:40 ratio. | U.P. P.C.S. (Pre) 2020 |
| MGNREGA Renaming | NREGA was renamed MNREGA on 2nd October, 2009. | |
| MGNREGA Positive Results | Includes Substantial increase in purchasing power of rural poor and Reduction in migration to cities. | UPPCS (Pre) 2015 |
| MGNREGA Objective | To enhance rural income. | |
| SGSY Launch | Swarnajayanti Gram Swarozgar Yojana (SGSY) was started in 1999. | UPPCS (Pre) 2002; UPPCS (Mains) 2006 |
| SGSY Restructure | Restructured as National Rural Livelihood Mission (NRLM) in June, 2011. | I.A.S. (Pre) 2012 |
| Jawahar Rozgar Yojana (JRY) | Introduced in 1989 (Seventh Five Year Plan). Reserved 30% of employment generated for women. | I.A.S. (Pre) 1995; |
| Skill Development Schemes | STRIVE, SANKALP, and SHREYAS are related to skill development. PMKVY aligns the competencies of the unregulated workforce to the National Skill Qualification Framework (NSQF). | U.P. R.O./A.R.O. (Pre) 2021; I.A.S. (Pre) 2018 |
| UP Scheme (Schools) | "Operation Kayakalp" scheme is related to renovating primary schools. | U.P. R.O./A.R.O. (Re-Exam) 2023 |
| UP Scheme (Nutrition) | 'Shabri Sankalp Abhiyan' (2017) is associated with the National Nutrition Mission. | U.P. R.O./A.R.O. (Pre) 2021 |
| PM Awas Yojana Time Span | The time span of Pradhan Mantri Awas Yojana is 2015 - 2022. | U.P. R.O./A.R.O. (Pre) 2017 |
| Rajiv Awas Yojana (RAY) Objective | The main objective of RAY was slum free India. | U.P. U.D.A./L.D.A. (Spl.) (Mains) 2010 |
| Concept | What to remember | Asked in UPPCS |
|---|---|---|
| Urbanization Causes | High rate of migration from rural to urban areas and increasing number of educational institutions in cities. | U.P. Lower Sub. (Pre) 2015 |
| Most Urbanized States (2011 Census) | Goa and Mizoram. | UPPCS (Spl.) (Pre) 2008; U.P. R.O./A.R.O. (Re-Exam) 2023 |
| Largest Number of Towns (2011 Census) | Uttar Pradesh has the largest number of towns in India. | |
| Urban Migration Origin | During the last 30 years, Delhi received the highest number of migrants from Uttar Pradesh. | UPPCS (Mains) 2005 |
| JNNURM Launch and Objective | Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was launched in December 2005. Objectives included upgradation of urban infrastructure, promoting inclusive growth, and addressing sanitation/sewage. | UPPCS (Mains) 2010; UPPCS (Spl.) (Mains) 2004; U.P. R.O./A.R.O. (Mains) 2013 |
| JNNURM Excluded Objective | Urban Electrification was explicitly NOT an objective of JNNURM. | UPPCS (Mains) 2010 |
| AMRUT Thrust Areas | Atal Mission for Rejuvenation and Urban Transformation (AMRUT) thrust areas include Water supply, Sewerage facilities, Public Transport, parks/recreation centres, and Storm water drain. | |
| Bharatmala Project | A centrally-sponsored project related to Road infrastructure. | |
| Railway PPP Model | India's first broad-gauge railway line under the Public-Private Partnership model was made in Gujarat. | U.P. Lower Sub. (Pre) 2015 |
| Golden Triangle of Tourism | Includes the cities: Agra, Delhi and Jaipur. | UPPCS (Mains) 2012 |
| Universal Service Obligation Fund (USOF) | Concerned with the adjustment of liabilities of telecom companies (to ensure telegraph services in rural/remote areas). | UPPCS (Mains) 2003 |
| UP Programme (Infrastructure) | Ganga Expressway is a Uttar Pradesh Government's Programme and not a Central Government Programme. | UPPSC Prelims-2023 |
| UP Most Developed District (2005 Planning Atlas) | Gautam Budh Nagar was listed as the most developed district (Lucknow was fifth). | UPPCS (Pre) 2006 |
| First State Data Centre | Himachal Pradesh became the first Indian State to have a State Data Centre (SDC) in June 2016. |
