India’s key economic indicators have seen sharp decline recently, reflecting a much larger than anticipated slowdown in the Indian economy last year. Projections for 2020-21 indicate between 5 and 10 per cent plus a contraction in GDP. The predominant focus, however, is on industry. Even the discussion on the pandemic’s impact on trade has largely been around India’s merchandise trade, which recorded around 60 per cent decline in April.
While this focus on industry is understandable given the latter’s large multiplier effect on income, employment, and demand, the outlook for services too warrants attention. The services PMI for April and
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