Trade, hotel, transport, communication and services related to broadcasting reported a contraction of 18.2 percent in the fiscal year 2020-21.
The sector reported a narrower deceleration in the fourth quarter (January -March) as per the data released by National Statistical Office (NSO) on May 31.
Trade, hotel, transport, communication & services related to broadcasting recorded a contraction of 2.3 percent in Q4.
The fall in numbers is visible in the country’s economy that contracted 7.3 percent in the 2020-21 fiscal year. It is the first yearly economic contraction since 1980-81.
The sector had reported a massive contraction of 47.6 percent in the first quarter. It has reported a much narrower contraction in the July-September quarter by witnessing a contraction of 15.3 percent and 7.7 percent contraction in the third quarter.
According to the NSO data released on Friday, the gross value added (GVA) from trade, hotel, transport, communication & services related to broadcasting fell by 2.3 percent at constant prices in the January-March quarter against a 3.7 percent year-on-year rise in the overall real GVA for the second quarter.
GVA at current prices for trade, hotel, transport, communication & services related to broadcasting rose 2.6 percent year-on-year during the last quarter against an 8.8 percent growth for the overall nominal GVA.
Meanwhile, Financial, Real Estate and Professional Services rose by 5.4 percent in the final quarter and shrank by 1.5 percent in FY21.
Public Administration, Defence and other services reported a growth of 2.3 percent in Q4 and 4.6 percent contraction for the fiscal year. Electricity, Gas, Water Supply and Other Utility Services grew 9.1 percent in Q4 and rose by 1.9 percent in FY21.
The travel and hospitality sector which had barely survived the first wave of the novel coronavirus pandemic is again staring at another tough year despite the vaccination drive.
Just when the sector had started trotting back to revival mode, the uncertainty around the second wave has again led to remote working and people have stepped inside, avoiding any unnecessary travel. Thus, the little recovery that the sector had made post pandemic has started to recede once again. To aid the sector in its recovery, the Centre on March 31 had extended the scope of the Rs 3 lakh crore ECLGS to Hospitality, Travel and Tourism, Leisure, and Sporting sectors.
According to a report by rating agency ICRA, it expects the domestic hospitality industry to contract 65 percent in the financial year 2021 wiping out the cumulative profits of the four past years. However, it said that a sharp demand recovery is possible in the latter part of the financial year 2021-22, as vaccine rollouts gain traction.
According to World Travel and Tourism (WTTC), the tourism industry contributed 9 percent to India's GDP in 2019. WTTC also estimated a revenue loss of $17 billion for India in 2020.
A report on the COVID-19 impact on the Indian hotel sector by HVS Anarock estimated a Rs 90,000 crore decline.India GDP Data Live Updates