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8 Economic Survey 2021-22
Figure 10: Housing Sales and New Figure 11: RBI Housing Price
Launches in Top 8 Cities Index: All India
290
100
Sales Launches
285
80
280
Thousand 60 Index 275
270
40
265
20
260
0
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1.2018-19 Q2.2018-19 Q3.2018-19 Q4.2018-19 Q1.2019-20 Q2.2019-20 Q3.2019-20 Q4.2019-20 Q1.2020-21 Q2.2020-21 Q3.2020-21 Q4.2020-21 Q1.2021-22 Q2.2021-22(P)
2019-20 2020-21 2021-22
Source: Anarock, Proptiger, RBI
*Top 8 cities include: Ahmedabad, Benguluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, Pune
1.8 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. Although
the overall sector first contracted by 8.4 per cent in 2020-21 and then is estimated to grow by
8.2 per cent in 2021-22, it should be noted that there is a wide dispersion of performance by
different sub-sectors. Both the Finance/Real Estate and the Public Administration segments are
now well above pre-COVID levels. However, segments like Travel, Trade and Hotels are yet to
fully recover. It should be added that the stop-start nature of repeated pandemic waves makes it
especially difficult for these sub-sectors to gather momentum.
1.9 Despite contact-sensitive services still being impacted by COVID, there has been a strong
recovery of the Purchasing Managers’ Index-Services since August 2021 (Figure 13). In this
context, it is important to note the role of new forms of High Frequency Indicators to gauge
real-time trends. For example, the Google mobility indicators for retail and recreation (i.e.,
restaurants, cafes, shopping centres, etc.) and transit stations (public transport hubs such as
subway, bus, and train stations), measuring percentage deviation from pre-pandemic levels of
mobility, has exceeded pre-pandemic levels in December 2021 before the Omicron wave again
led to restrictions (Figure 12). Similarly, the hotel occupancy rate has recovered substantially,
reaching 56-58 per cent in October 2021, from 30-32 per cent in April 2021 (Figure 14).
Figure 12: Trends in Mobility
Retail and Recreation Transit Stations
10
% Deviation from baseline -30 1st Lockdown 2nd Wave
-10
-50
-70
-90
Feb/20 Mar/20 Apr/20 May/20 Jun/20 Jul/20 Aug/20 Sep/20 Oct/20 Nov/20 Dec/20 Jan/21 Feb/21 Mar/21 Apr/21 May/21 Jun/21 Jul/21 Aug/21 Sep/21 Oct/21 Nov/21 Dec/21
Source: Google Mobility
Note: Baseline corresponds to Jan-Feb 2020 Level