Covid crisis and India's services sector: Some glimpses and insights

Abstract

The coronavirus onslaught has hit the global economy very hard. India is not an exception to the devastations triggered by the pandemic. The present paper provides some glimpses and insights into the potential implication of COVID-19 pandemic on India's services sector and also suggests the way forward. The study reveals that service sector which has been the major contributor to GDP in India for the past four decades is likely to witness a decline in its contribution to both GDP and employment in the wake of this disease. Therefore, it is imperative to rejuvenate and revive the services sector to put India's economy on a path to recovery. The paper also suggests that through pro-active and pre-emptive interventions and by understanding and tapping inter-sectoral linkages the government can offset the headwinds and a sharp and rapid economic rebound could follow.