Economic Survey 2022: Services sector hardest hit by Covid-19 pandemic

New Delhi: Finance Minister Nirmala Sitharaman on Monday, January 31, tabled the Economic Survey 2021-22 along with Statistical Appendix in the Lok Sabha on the first day of the Budget session of Parliament. The Economic Survey 2022 pointed out that the services sector has been the hardest hit by the Covid-19 pandemic.

Segments in services sectors that involve human contact were hit the hardest by the pandemic, the survey mentioned. “Services account for more than half of the Indian economy and was the most impacted by the COVID-19 related restrictions, especially for activities that need human contact,” the survey added. 

The Economic Survey expects the services sector to grow by 8.2 per cent in the ongoing financial year following last year’s 8.4 per cent contraction. 

“Despite contact-sensitive services still being impacted by COVID, there has been a strong recovery of the Purchasing Managers’ Index-Services since August 2021,” the survey added. 

“Exports of both goods and services have been exceptionally strong so far in 2021-22, but imports also recovered strongly with recovery in domestic demand as well as higher international commodity prices,” the survey added. Also Read: Budget Session 2022: President Kovind lauds 'Digital India' initiative, says Centre working on developing 5G

Meanwhile, the survey expects Agriculture sector growth at 3.9 per cent and Industrial sector growth of 11.8 per cent in FY22. Also Read: Budget Session 2022: Rs 1 lakh crore sanctioned for 1,000 schemes to boost agriculture, says President Kovind