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322 Economic Survey 2021-22

Agriculture Services 0.25 88 46 124 23 60 42
Gross FDI Equity 28,265 34,868 39,539 17,577 23,612 16,727
Inflows into Services
Sector (US$ million)
Change from -2.4 23.4 13.4 33.1 34.3 -29.2
Previous Year
(per cent)
Gross FDI Equity 44,366 49,977 59,636 26,096 30,004 31,153
Inflows into India
(US$ million)
Share of Services 63.7 69.8 66.3 67.4 78.7 53.7
Sector in Gross FDI
Equity Inflows
(per cent)
Source: Department for Promotion of Industry and Internal Trade (DPIIT).
Note: *: Up to September 2021

TRADE IN SERVICES SECTOR
9.19 World trade in commercial services plummeted in 2020 following the Covid-19 pandemic.
The slowdown in global services was predominately due to restrictions on travel and tourism
and reduction in transportation services, largely in the passenger segment (WTO, 2021). In 2021
so far, world trade in services has shown signs of recovery as a result of world-wide extensive
inoculation and resumption in global economic activity. According to WTO, global services
trade returned to positive growth territory in April-June 2021, rising 26 per cent yoy largely
reflecting the rebound from same period last year, the quarter in which the strongest impact
due to Covid-19 was felt. Bolstered by increased demand for goods, shipping under-capacity and
higher freight costs, transport services improved on YoY basis. However, travel services remain
below pre-pandemic levels. Despite signs of recovery, the WTO expects global services trade to
grow at a slower pace than goods trade in 2021, particularly in sectors related to travel and leisure.

Services exports
9.20 India has a dominant presence in global services exports (Figure 4). It remained among the
top ten services exporter countries in 2020, with its share in world commercial services exports
increasing from 3.4 per cent in 2019 to 4.1 per cent in 2020.

Figure 4: India's share in World Commercial Service Exports
Figure 4: India's share in World Commercial Service Exports
4.5
4.0
3.5
3.0
2.5
Per cent 2.0
1.5
1.0
0.5
0.0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: World Bank

Note: Commercial service exports are total service exports minus exports of government services not

included elsewhere. International transactions in services are defined by the IMF's Balance of Payments
Manual (1993) as the economic output of intangible commodities that may be produced, transferred, and
consumed at the same time.