The Ministry of Finance has tabled the Economic Survey 2021-22 in Parliament today according to which it has highlighted that Services Sector has contributed over 50% to India’s Gross Domestic Product (GDP).
Registering a steady recovery during the first half of the current fiscal year, “Overall, the Services Sector grew by 10.8% Year on Year (YoY) in first half (H1) 2021-22”, stated the Survey. While, the overall Services sector GVA is expected to grow by 8.2 per cent in 2021-22.
Further, the Economic Survey has mentioned that the Services Sector was the largest recipient of FDI inflows in India. During H1 2021-22, Services Sector received $ 16.73 billion FDI equity inflows, quoting that “Financial, Business, Outsourcing, R&D, Courier, Tech testing & Analysis along with Education sub sector witnessed strong FDI inflows.”
However, regarding Trade in Service, the Survey highlighted that India has remained among the top ten services exporter countries in 2020, with its share in world commercial services exports increasing to 4.1% in 2020 from 3.4% in 2019. Despite Covid-19 impact on transport exports, double digit growth in gross exports of services, aided by exports of software, business and transportation services, resulted in an increase of 22.8% in net exports of services in H1 2021-22.