Services sector contributed over 50 per cent to India’s GDP, according to the Economic Survey 2021-22 presented in Parliament today by Union Finance Minister Nirmala Sitharaman.

The survey also noted that the services sector registered a steady recovery during the first half of the current fiscal year. “Overall, the services sector grew by 10.8 per cent Year on Year (YoY) in the first half of 2021-22”, it stated.

The overall services sector Gross Value Added (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 the near term, especially in segments that require human contact, the survey emphasised.

The survey noted that the services sector was the largest recipient of FDI inflows in India. During the first half of 2021-22, the services sector received $ 16.73 billion FDI equity inflows. “Financial, Business, Outsourcing, R&D, Courier, Tech testing & Analysis along with education sub-sectors witnessed strong FDI inflows”, it said.

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 per cent in 2020 from 3.4 per cent in 2019. “The impact of Covid-19 induced global lockdown on India’s services exports was less severe as compared to merchandise exports”, the survey said.

It 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 per cent in net exports of services in the first half of 2021-22.

The survey mentioned that Startups in India had grown remarkably over the last six years, most of which belonged to the services sector. More than 61,400 startups have been recognised in India as of 10 January 2022.

Further, the survey stated that India had a record number of Startups (44) reaching unicorn status in 2021. It also mentioned that intellectual property, specifically patents, were key to knowledge-based economy. “The number of patents filed in India has gone up to 58,502 in 2020-21 from 39,400 in 2010-11 and the patents granted in India has gone up to 28,391 from 7,509 during the same period”, noted the Survey.

The survey stated that the tourism sector was a major contributor to GDP growth, foreign exchange earnings and employment. However, the Covid-19 pandemic had a debilitating impact on world travel and tourism everywhere, including India.

Further, the survey suggested that the resumption of International tourism will continue to depend largely on a coordinated response among countries in terms of travel restrictions, harmonised safety and hygiene protocols and effective communication to help restore consumer confidence. The survey stated that special international flights have been operating under the Vande Bharat Mission which was currently in its 15th phase and had carried over 63.55 lakh passengers.