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The services sector is showing signs of revival in the current fiscal and can get a fillip through quick reforms and removal of obsolete regulations, the Economic Survey for 2013-14 says.
“A stable Government in place and growing optimism that could translate into investment and growth, quick reforms and removal of some barriers and obsolete regulations, could help the services sector,” it said.
The Survey, however, warns of the downside risk of a fragile global situation.
Services, growing at a steady rate of over 10 per cent since 2005-06, has shown subdued performance in the last three years with growth hovering around 7 per cent.
This has been largely due to a slowdown in the manufacturing and mining sectors which directly affected services such as railways, shipping, ports among others. Other services were affected by the income effect (reduction in incomes) due to slowdown in growth of global and domestic incomes, the Survey said.
GDP growth The Survey indicates that 2014-15 could see a bounce-back for the services sector with expansion in business activity.
Already, there are signs of revival in the aviation sector. Indications of an uptick in world GDP and trade growth in developed countries, in particular, could revive tourism and shipping, it added.
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