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Q48 (CDS-II/2015) Economy › Basic Concepts & National Income › Real vs financial sector Answer Verified

Which one of the following is not a part of service sector in India?

Result
Your answer: —  Â·  Correct: B
Explanation

In the Indian economy, activities are classified into primary, secondary, and tertiary sectors. The tertiary sector, also known as the service sector, includes activities that provide services rather than tangible goods. Examples include transport, storage, communication, banking, insurance, and hospitality services like hotels and restaurants [3]. While some international classifications or specific economic discussions may associate construction with services due to its service-oriented components, the standard National Accounts classification in India categorizes construction as part of the secondary sector [2]. The secondary sector encompasses manufacturing, electricity, gas, water supply, and construction [3]. Therefore, while transport, hotels, and insurance are core components of the service sector [1], construction is fundamentally classified as an industrial or secondary sector activity in the traditional three-sector model of the Indian economy.

Sources

  1. [1] Exploring Society:India and Beyond. Social Science-Class VI . NCERT(Revised ed 2025) > Chapter 14: Economic Activities Around Us > C. Tertiary activities > p. 201
  2. [3] Economics, Class IX . NCERT(Revised ed 2025) > Chapter 2: People as Resource > Economic Activities by Men and Women > p. 19
  3. [2] Understanding Economic Development. Class X . NCERT(Revised ed 2025) > Chapter 2: SECTORS OF THE INDIAN ECONOMY > We begin by looking at different kind of economic activities. > p. 19
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