Express News Service
BENGALURU: India’s services sector, which accounts for 54% of the country’s economy is estimated to contract by 8.8% in FY21 as sub-sectors like tourism, aviation, and hospitality were marred by Covid pandemic and subsequent lockdowns, the Economic Survey 2021 said.
The contact-intensive services sector contracted by almost 16% in HIFY21 with a huge impact on air passenger traffic, rail freight traffic, port traffic, foreign tourist arrivals, and foreign exchange earnings following the first lockdown announced in March 2020. However, the Foreign Direct Investment(FDI) inflow into the sector has seen a 34% YoY jump during April-September 2020 to reach 23.61 billion led by the…