Economic Survey 2021: Maharashtra's services sector to grow at minus 9%
Bhushan Koyande

The services sector, which contributes 55.7% to the gross state value of Maharashtra, is expected to clock a negative growth at minus 9% in 2020-21 compared to 7.2% in 2019-20. According to the Economic Survey, the average growth of the sector between 2012-13 and 2019-20 has been 8.1%.

The services sector consists of trade, repairs, hotels and restaurants, transport, storage and communication as well as broadcasting, financial, real estate and professional services.

In order to revive the tourism and hospitality sectors, which is a large source of job creation, the state government gave these sectors an industry status. The state government announced Agro Tourism Policy in September, 2020. It also announced the Beach Shack Policy in August, 2020, which will allow setting up of temporary, eco-friendly and CRZ compliant beach shacks, deck beds, umbrellas and common beach facility centres along the Konkan coast.

To start a new business in the hospitality sector, about 70 permissions, approvals and licenses were required from 12 departments earlier. However, after the impact the COVID-19 pandemic and lockdown had on this sector and considering its tremendous employment potential, the state government decided to reduce the number of permissions, approvals and licenses to 15, which can be obtained from seven departments.

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