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Services 319

Figure 3: Growth in Bank Credit to Services Sub-Sectors (YoY)
Figure 3: Growth in Bank Credit to Services Sub-Sectors (YoY)

50
40 Nov-20 Nov-21
30
20
Per cent 10 0

-10
-20
-30
-40
Services Shipping Retail Trade NBFCs
Transport Operators Computer Software Tourism, Hotels and Restaurants Professional Services Wholesale Trade (other than food procurement) Commercial Real Estate Other Services

Source: RBI.

Note: Data denotes Credit outstanding as on November 2020 and 2021.

9.14 Bank credit to services sector registered a growth (YoY) of 3.6 per cent in November 2021,

as compared to the 8.2 per cent a year ago (Figure 3). The slowdown in growth is largely on

account of the lower growth in credit to ‘Tourism, Hotel & Restaurants’, ‘Transport Operators’
and Trade- Retail as well as Wholesale. On the other hand, growth in bank credit picked up in
‘Computer Software’, ‘Shipping’, and ‘Non-Banking Financial Companies (NBFCs).

SERVICES SECTOR SHARE AT THE STATE AND UT LEVEL
9.15 The services sector accounts for more than 50 per cent of the Gross State Value Added
(GSVA) in 12 out of the 33 states and UTs (Table 3). Chandigarh stands out with a particularly
high share of services in GSVA at 74 per cent while Sikkim’s share remains the lowest at 24.25
per cent. Notably, Services share in Sikkim’s GSVA has increased from over 18 per cent in
2018-19 to over 24 per cent in 2020-21. Similarly, over the last three years, share of services
in GSVA has increased by over 4 per cent for Himachal Pradesh and Odisha. Maharashtra and
Karnataka are the top two contributors to services GSVA, with Rs 15.1 lakh crore and Rs 9.71
lakh crore gross value added by services sector in 2020-21 respectively.

9.16 Due to the Covid-19 pandemic and restrictions in movement, GSVA in services sector
declined in 2020-21 relative to the pre-pandemic year 2019-20. This is true for 13 out of 20
states for which data is available. During 2020-21, services GSVA contracted by almost 11
per cent in Rajasthan, and by almost 10 per cent in Jharkhand and Punjab. On the other hand,
Sikkim achieved the highest growth of 11.71 per cent in services GSVA during 2020-21.