Page 683 - ES 2020-21_Volume-1-2 [28-01-21]

310 Economic Survey 2020-21 Volume 2

Table 4: Gross FDI Equity Inflows* into Services Sector
Share in Gross FDI Gross FDI Equity Inflows (US$ million)
Equity Inflows into
Services Sub-sectors April-Sep April-Sep
Services sector in 2018-19 2019-20
2019-20 (per cent)** 2019 2020
Financial, Business,
Outsourcing, R&D, Courier, 9.54 9,158 7,854 4,455 2,252
Tech Testing & Analysis
Computer Software & Hardware 74.34 6,415 7,673 4,025 17,554
Trading 4.02 4,462 4,574 2,143 949
Telecommunications 0.03 2,668 4,445 4,280 7
Information & Broadcasting 0.68 1,252 823 196 161
Hotel & Tourism 1.20 1,076 2,938 859 283
Hospitals & Diagnostic Centers 0.69 1,045 635 376 163
Education 2.56 777 3,245 216 604
Retail Trading 5.21 443 472 243 1,230
Consultancy Services 0.46 411 1,047 473 110
Sea Transport 0.61 279 199 173 144
Air Transport 0.41 191 918 114 97
Agriculture Services 0.25 88 46 23 60
Gross FDI Equity Inflows into
Services Sector (US$ million) 28,265 34,868 17,577 23,612
Change from Previous Year
(per cent YoY) -2.4 23.4 33.1 34.3
Gross FDI Equity Inflows into
India (US$ million) 44,366 49,977 26,096 30,004
Share of Services Sector in
Gross FDI Equity Inflows (per 63.7 69.8 67.4 78.7
cent)

Source: Department for Promotion of Industry and Internal Trade (DPIIT).
Note: *Excludes re-invested earnings.

Trade in Services Sector

9.8 In 2020, the world trade in services was severely impacted by the COVID-19 pandemic
and the resultant supply chain disruptions worldwide. While World Trade Organisation (WTO)
projects the global merchandise trade volume growth to fall by 9.2 per cent in 2020, the IMF
expects volume of global trade in goods and services to contract by 10.4 per cent in 2020. WTO
services trade activity index indicated a decline in global trade in commercial services of 4.3
per cent in the first three months of 2020, reflecting partly the adverse effect from spread of
COVID-19. During Q2 of 2020 (April-June), the global trade in commercial services plunged
by 30 per cent YoY as several countries imposed lockdown and transportation restrictions that
covered cross-border measures as well.
9.9 India has a significant presence in the services sector exports. It remained among the top ten
trading countries in commercial services in 2019 accounting for 3.5 per cent of world services