Economic Survey: Services sector resilient, to grow by 8.2% in FY22

Omicron could prove a hurdle, may particularly impact contact intensive segments, says Survey

The services sector is expected to grow by 8.2 per cent in 2021-22 but the spread of Omicron variant of Covid-19 poses a risk to the recovery especially in contact intensive segments, according to the Economic Survey which was released today.

This is after 8.4 per cent contraction in the previous year. The de-growth was driven by sectors such as trade, hotels, transport which due to its contact intensive nature suffered the maximum brunt of the pandemic. The sector was worst hit during the pandemic and its share in the country’s gross value added from 55 per cent in 2019-20