Services Sector contributed over 50% to India’s GDP, highlighted the Economic

Survey 2021-22 which was tabled by the Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman
in Parliament today. The Survey also noted that Services Sector registered 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.

The overall Services sector GVA is expected to grow by 8.2 per cent in 2021-22 , although the spread
of Omicron variant brings in a degree of uncertainty for near term, especially in segments that require human
contact, the Survey emphasised.

FDI In Services (Foreign Direct Investment)

The Economic Survey noted 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. “Financial, Business, Outsourcing, R&D, Courier, Tech
testing & Analysis along with Education sub sector witnessed strong FDI inflows”, mentioned the Survey.

Trade In Services

The Economic Survey highlighted that India had a dominant presence in global services exports. It 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. “The impact of Covid-19 induced global lockdown on India’s services exports was
less severe as compared to merchandise exports”, stated the Economic Survey. The Survey further mentioned that
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. INTRODUCTION

The services, sector is not only the dominant sector in India’s

GDP, but has also attracted significant foreign investment, has
contributed significantly to export and has provided large-scale employment. India’s services sector covers a wide
variety of activities such as trade, hotel and restaurants, transport, storage and communication, financing, insurance,
real estate, business services, community, social and personal services, and services associated with construction.

India's services sector covers a wide variety of activities such as trade,

hotel and restaurants, transport, storage and communication,
financing, insurance, real estate, business services, community, social
and personal services, and services associated with construction.