Service sector

Punjab’s service sector hit hard during pandemic: Economic survey

Punjab is among the three states that recorded the worst service sector growth during the pandemic, the Economic Survey – 2022 tabled in Parliament by Union Finance Minister Nirmala Sitharaman on Monday revealed.

Meanwhile, Rajasthan and Jharkhand are the other two states that have performed less well in the services sector than Punjab during the pandemic.

The survey found that the State Gross Value Added (GSVA) ​​in the services sector declined in 2020-21 compared to the pre-pandemic year 2019-20 due to the Covid-19 pandemic. 19 and movement restrictions. In 2020-21, the share of the services sector in the GSVA contracted by almost 11% in Rajasthan and by almost 10% in Jharkhand and Punjab. On the other hand, Sikkim recorded the highest growth of 11.71% in services GSVA in 2020-2021 across the country.

In Punjab, the share of the service sector in the state Gross Value Added (GVA) was around 41.83% in 2020-21, while it was 42.34% in 2019-20. GVA is a measure of economic productivity that measures the contribution of a subsidiary, company or municipality to an economy, producer, sector or region.

Furthermore, the survey further highlighted groundwater depletion in Punjab, Chandigarh and the neighboring state, Haryana. He said that the overall groundwater development stage (ratio of annual draft to annual net groundwater availability) in the country is 63%. This ratio, which signifies the rate of groundwater extraction, is very high (more than 100%) in the states of Delhi, Haryana, Punjab and Rajasthan.

As part of the development of the satellite image tracking and mapping category, the survey mentioned that the images were compared to the kharif crop cycle in Moga district, Punjab in 2005 and 2021. The images show that the The kharif sowing cycle has advanced by about two to three weeks, making the harvest of kharif almost coincide with the sowing of rabi in November.

He noted that the narrowing gap is a likely factor that encourages farmers to burn stubble and may be linked to restrictions on early transplanting of paddy Kharif.

The survey also mentioned that air pollution from stubble burning in the states of Haryana, Punjab, Uttar Pradesh and NCT Delhi was a major concern. Meanwhile, the survey indicated that Punjab was among the favorites in 2021 in the Niti Aayog Sustainable Growth Index.

“In contrast, demand for Mahatma Gandhi National Rural Employment Generation Scheme jobs has been higher for migrant-receiving states like Punjab, Maharashtra, Karnataka and Tamil Nadu for most months in 2021 by compared to 2020. Therefore, the relationship between MGNREGS employment and the movement of migrant labor over the past two years cannot be conclusively determined and requires further research,” added the investigation.

When contacted, Punjab Principal Secretary Dilip Kumar who holds the job creation portfolio said Punjab mainly has a small industry which has been affected during the pandemic because all laborers come from out of state. He said that was the main reason that hit the growth of the service sector.


  • ABOUT THE AUTHOR

    A staff correspondent, based in Jalandhar, covers the Doaba region of Punjab. Reports on Punjab police, law enforcement leadership, politics, corruption, law, rural areas, socio-economic issues and technical education, in addition to specialization in news reporting of investigation.
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