Research Paper
Management
E-ISSN No : 2454-9916 | Volume : 8 | Issue : 7 | Jul 2022
IMPACT OF COVID -19 ON SERVICE SECTOR & REVIVAL STRATEGIES 1
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K. Suresh Kumar , Dr. N. Udaya Bhaskar , Dr. R. Pardhasaradhi 1
HOD, Department of Management Studies, S.D.College of I.T, Tanuku. Assistant Professor, DCMS, AdiKavi Nannaya University, Rajahmundry. 3 Principal,Sri Y N College, Narsapur. 2
ABSTRACT Coronavirus disease (COVID-19) is having an unprecedented and unpredictable impact on the world's economy. The coronavirus epidemic (COVID19) has affected the global economy and service sector. The service sector can be viewed as an intangible econoomic activity that can neither be stored nor result in any ownership, but plays a very special role in the country's economy. It has a very notable impact on the India's economy by its contribution which is around 55 % of the total economy. It has emerged as the largest and fastest-growing sectors of the Indian economy, making higher contributions to national income and employment. The covid 19 has worst impacted each and every sector of the market so as the service sector. Sectors like Education, Health Care, Gym, Tourism have witnessed a direct impact as the involvement of the people/Customers/Consumers were limited or completely shut. The purpose of the current study is to assess the effect of COVID-19 on service sector growth and sustainability. KEYWORDS: Coronavirus,Pandemic, India , Economy, Service Sector, GDP, Stratgey. INTRODUCTION: The services sector is not only the dominant sector in India's GDP, but has also attracted significant foreign investment flows, contributed significantly to exports as well as provided large-scale employment. India's services sector covers a wide variety of activities such as trade, hotel and restaurants, transport, storage and communication, financing, insurance, real estate, business services, community, social and personal services, and services associated with construction. Within a short span of 50 years since independence, the contribution of the service sector in India to the country's GDP is a lion's share of over 60%. This paper is written by keeping in mind the Pre and Post COVID situation and would depict how the service providers changed themselves during this challenging time in their business approach, the assignment focuses on positive impact it has bought than the negative, it doesn't mean it hasn't created or left any negative impact, to mention the COVID has created havoc mostly in the unorganized sector where the employees are purely dependent on daily wages, unsecured jobs etc., in county like India most of the people living in rural area migrate to the metro cities in search of better life, when these types of situation arises it is only such majority of people suffer and we have seen the type of problems it imposed on the entire system.
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On March 17, 2021, the Health Ministry's eSanjeevani telemedicine services crossed 3 million (30 lakh) teleconsultations since its launch, enabling patient-to doctor consultations from the confines of their home and doctor-to-doctor consultations.
GOVERNMENT INITIATIVES: The Government of India recognizes growth in services sector and provides several incentives across a wide variety of sectors like health care, tourism, education, engineering, communications, transportation, information technology, banking, finance and management among others. The Government of India has adopted few initiatives in the recent past, some of these are as follows: Ÿ
In October 2021, Prime Minister, Mr. Narendra Modi, approved the establishment of 157 new medical colleges to boost accessibility of affordable health treatments among citizens.
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In October 2021, the government launched a production linked incentive (PLI) scheme to boost manufacturing of telecom and networking products in India. The scheme is expected to attract an investment of ~Rs. 3,345 crore (US$ 446.22 million) over the next four years and generate additional employment for >40,000 individuals.
INDUSTRY DEVELOPMENTS: Some of the developments in the services sector in the recent past are as follows: Ÿ
In October 2021, India's service exports increased by 23.52% to reach US$ 20.86 billion, while imports stood at US$ 12.71 billion.
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The Indian services sector was the largest recipient of FDI inflows worth US$ 88.95 billion between April 2000 and June 2021. The services category ranked 1st in FDI inflow as per data released by the Department for Promotion of Industry and Internal Trade (DPIIT).
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In October 2021, the government launched phase-II of the Mahatma Gandhi National Fellowship to empower students and boost skill development.
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In the first-half of 2021, private equity investments in India stood at US$ 11.82 billion, as compared with US$ 5.43 billion in the same period last year.
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In October 2021, the PM Ayushman Bharat Health Infrastructure Mission was launched by the government, to strengthen the critical healthcare network across India in the next four to five years.
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In August 2021, the Department of Telecommunications (DoT) issued a letter of intent (LoI) to One Web (backed by Bharti Group) for satellite communication services license.
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In September 2021, India and the UK joined the 11th Economic and Financial Dialogue (EFD) to discuss the FTA (Free Trade Agreement) opportunities in services.
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In July 2021, Tata Teleservices collaborated with Zoom Video Communications to offer bundled communication services.
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In June 2021, India's exports increased by 48.34% to US$ 32.5 billion, marking the seventh consecutive month of growth.
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In April 2021, the Ministry of Education (MoE) and University Grants Commission (UGC) started a series of online interactions with stakeholders to streamline forms and processes to reduce compliance burden in the higher education sector, as a follow-up to the government's focus on ease of doing business to enable ease of living for stakeholders.
IMPACT: 1. Insurance: The new business premium for life insurers in India shrunk for the second month in April, with business significantly hit by the covid-19 outbreak and the subsequent lockdown. According to the Insurance Regulatory Development Authority of India, in April, new business premium declined 32.6% to ₹ 6,728 crore as against ₹ 9,928 crore for the same period of last year. The extended phase of lockdown and its related restrictions will have a negative impact on the new business premiums growth in 2020. Among large private insurers, HDFC Life Insurance Co.'s new business pr
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