Which of the following sub-sectors of the service sector in Rajasthan had the highest share in GSVA (Gross State Value Added) in 2020-21 at current prices?

Correct option is B

Ans. (b)
The Trade, Hotels & Restaurants sub-sector recorded the highest Gross State Value Added (GSVA) in Rajasthan in 2020-21 at current prices. Its contribution amounted to ₹10,842,422 lakh, surpassing other sub-sectors such as Real Estate (₹10,051,653 lakh), Transport (₹4,620,604 lakh), and Financial Services (₹3,075,090 lakh).
Information Booster
1. GSVA measures the value generated by different sectors of the economy at the state level.
2. The Service Sector is a major contributor to Rajasthan's GSVA, reflecting the growing importance of tourism and trade-related activities.
3. Rajasthan's economy relies heavily on services such as tourism, trade, and hospitality.
4. Trade, Hotels & Restaurants sub-sector benefits from Rajasthan's strong tourism base, which includes world-famous destinations like Jaipur, Udaipur, and Jaisalmer.
5. Real Estate & Professional Services are also key contributors, reflecting urbanization and infrastructural growth.
6. The financial sector, despite its lower GSVA share, plays a crucial role in facilitating the state's economic activities.
Additional Knowledge
· (a) Transport, Storage & Communication: This sub-sector includes services related to transportation, logistics, and communication infrastructure. Though significant, it contributes less to GSVA in Rajasthan compared to tourism-related sectors.
· (b) Trade, Hotels & Restaurants: It benefits from tourism and trade, and its dominance in GSVA highlights Rajasthan's reliance on the tourism economy.
· (c) Real Estate, Ownership of Dwellings & Professional Services: Urbanization and demand for housing have led to a significant contribution from this sub-sector.
· (d) Financial Services: Includes banking, insurance, and other financial institutions, essential for economic operations but with a smaller direct GSVA contribution.
Key Points
· GSVA reflects the sectoral strength of an economy.
· Rajasthan’s service sector is heavily supported by tourism-driven sub-sectors.
· Trade and hospitality dominate due to the state’s cultural and historical richness.