AIR 384 · CSE 2025 · GS3 · 56 pages

Rupam Arora: GS3 answer copy

20 answers by Rupam Arora, as written in the test. Each question opens a page with how other toppers answered it.

The questions

The answers

Question 1 · 10 marks · 191 words written

Discuss the significance of the services sector in India's GDP composition. What implications does this have for economic resilience and vulnerability to global shocks?

Opening · a figure

According to NSO (MoSPI), Service sector contributes about 53%-55% to India's GDP composition & employs about 30% of the workforce.

Body · points

Implications for Significance

  1. Largest sector to contribute to India's GDP, making India a service hub of the world.
  2. Growth of IT industry which service globally with companies like TCS, INFOSYS etc.
  3. Need for skilled & highly skilled labour with skills like AI & Machine Learning, Data Analytics etc.
  4. High ROI sector as many clients are situated abroad - hence increased forex.
  5. High job providing and high paying sector.

Vulnerability to Global Shocks

  1. Recent TCS layoff of 12000 employees show India's service sector's vulnerability to global shocks.
  2. Global recession will mean a slowdown in India's service sector.
  3. Post covid slow demand leading to stagnation and slow growth in service sector.
  4. Competition by South East Asian nations like Malaysia & Phillipines for BPO & call centers due to cheap workforce.

Close · a way forward

India's service sector provides rigidity to economy but it must transform to keep up with new advancements like AI & ML to become not only service providers but technology developers as well.