Service sector performance continues to be sluggish in Q3 of 20-21, Govt support to the sector is much needed: FICCI

NEW DELHI, 26 February 2021:  Commenting on the GDP numbers released today Uday Shankar, President, FICCI said “The positive albeit marginal growth reported in the third quarter of 2020-21 is indeed encouraging. The numbers are in line with the expectations and are reflective of the recovery being posted in most of the lead indicators. Going ahead, the roll-out of capital expenditure as announced in the Union Budget earlier this month should crowd in private investments and augurs well for overall economic revival”.

“However, even though recovery is broad basing, the performance of the services sector – which constitutes a major part of our GDP- remains sluggish. Particularly contact-based services like aviation, entertainment, tourism, and hospitality are yet to see momentum in activity. Government support to these sectors is much needed,” said Shankar.

“Moreover, while we are happy to note that the worst is behind us but the fresh surge in COVID -19 cases being witnessed is a cause of worry. While the vaccination drive is progressing well in the country, it is extremely critical at this juncture to maintain caution and substantially speed up the immunization process. At this stage of vaccine roll out, the private sector can be an important partner to the Government. This will augur well for sustaining the pace of economic recovery”, added Shankar.