Lok Sabha Question No. 1470 (UNSTARRED), answered on 2021-07-28
Subject: Service Sector Activities
Ministry: COMMERCE AND INDUSTRY
Asked by: Ravneet Singh

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOKSABHA UNSTARRED QUESTION NO. 1470 TO BE ANSWERED ON 28 th JULY,2021 TO BE ANSWERED ON 28

## SERVICE SECTOR ACTIVITIES

## 1470.  SHRI RAVNEET SINGH BITTU:

Will the Minister of COMMERCE & INDUSTRY ( वािण�य एवं उ�ोग मं�ी ) be pleased to state:

- (a) whether  the  services  sector  activities  in  the  country  have  contracted  sharply  in  the recent months;
- (b) if so, the details thereof along with the reasons therefor;
- (c) whether there has also been a contraction in the manufacturing activity and firms have been  regularly  shedding  headcount,  with  the  fastest  reduction  rate  recorded  in  June 2021 and if so, the details thereof;
- (d) whether the Government is taking any measures to improve the business activity in the country to boost manufacturing and services sector related activities in the country; and
- (e) if so, the details thereof and if not, the reasons therefor?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jherh vuqfiz;k iVsy½

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

(a)&  (b): The  services  sector's  Gross  Value Added  (GVA) showed a positive  growth  of  1.5 percent in the fourth quarter of 2020-21. The contraction of the services sector was largely due to the COVID-19 pandemic.

(c): As per the  latest  available  quick  estimates  of  Index  of  Industrial  Production,  during  the month of  May  2021,  the  index  for  the manufacturing  sector  was  113.5. Manufacturing  sector recorded a growth of 34.5 percent in May, 2021 compared to May, 2020.

(d)  &  (e): Government is taking  various  measures to boost manufacturing and services sector related activities in the country. Some of them are enumerated below:

- Steps to boost manufacturing sector activities through  initiatives such as Startup India, Business  Reform  Action  Plan,  Intellectual  Property  Rights  (IPR)  Policy  and  sectoral schemes/programmes.
- Simplification and progressive liberalization of Foreign Direct Investment (FDI) policy and procedures.
- Improving Ease of Doing Business (EoDB) in the country. This has led to improvement in the ranking as per World Bank's EoDB Report from 142 in 2014 to 63 in 2020.
- As  part  of  the  vision  of  becoming  'Aatmanirbhar'  and  for  enhancing  manufacturing capabilities, an outlay of Rs. 1.97 lakh crore has been announced in Union Budget 202122 for Production Linked Incentive (PLI) schemes for key sectors.
- Public Procurement (Preference to Make in India) Order has been revised on 16.09.2020 with the objective of maximizing usage of Made in India products in public procurement and to promote local manufacturing.
- The  National  Industrial  Corridor  Programme  (NICP)  has  been  conceived  to  promote world class manufacturing facilities and develop futuristic industrial cities.
- A new scheme, RoDTEP (Remission of Duties and Taxes on Exported Products), for re imbursement of currently un-refunded Central, State and Local Taxes and Duties incurred in  the  process  of  manufacture  and  distribution  of  exported  products  has  been  put  into effect from 01.01.2021.
- Steps to improve business activity in services sector, such as Loan Guarantee Scheme for COVID affected sectors which includes health and tourism, free one-month tourist visa to 5 lakh tourists once visa issuance is restarted, and financial support to tourist guides and other stakeholders.
- Structural reforms such as higher Foreign Direct Investment limits in defence and space sector,  creating  level  playing  field  for  private  sector  for  various  space  related  services, simplification of the Other Service Provider (OSP) guidelines under telecom have been undertaken.
- ' ' · ' Action Plan for Champion Sectors in Services ' to  give  focused  attention to   identified Champion Services Sectors to support sectoral initiatives of nodal Ministries / Departments identified for these sectors .

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