Previous Year Question
According to Economic Survey 2023 about services, which statement among the following is not correct?
Fashion, grocery and general merchandise will be captured nearly two-third of the Indian e-commerce market by 2030.
75 digital banking units announced for transforming financial services.
Credit growth to services is above 16% since July, 2022.
P.M.I. services witnessed strongest expansion since July, 2022.
Correct Answer: A
Detailed Solution
According to the Economic Survey 2022–23, the combined share of Fashion, Grocery, and General Merchandise in India's e-commerce market was projected to reach nearly two-thirds by 2027, not by 2030. This information was provided in Chapter 10 of the Economic Survey, titled Services: Source of Strength.
Option (a) is incorrect. According to Paragraph 10.27 and Figure X.14 of the Economic Survey 2022–23, the combined share of Fashion, Grocery, and General Merchandise was projected to reach nearly two-thirds of India's e-commerce market by 2027. This projection was based on Bain & Company's report titled How India Shops Online 2022.
Option (b) is correct. The Union Budget 2022–23 announced the establishment of 75 Digital Banking Units (DBUs) across 75 districts of the country. According to the Economic Survey 2022–23, these units had already been launched. Their objective was to expand access to digital banking services and promote Financial Inclusion.
Option (c) is correct. The Year-on-Year growth rate of Bank Credit to the Services Sector remained above 16% from July 2022 onwards. In November 2022, the growth rate was 21.3%, compared with only 3.3% in November 2021. The increase in bank credit reflected an improvement in the financial requirements and economic activities of the services sector.
Option (d) is correct. The Services Purchasing Managers' Index (PMI) indicated strong expansion during the period following July 2022. According to the Economic Survey, after weakening until September 2022, the index recovered and Services PMI reached 58.5 in December 2022. A PMI value above 50 indicates expansion in activity compared with the previous month, while a value below 50 indicates contraction.
Major services sector indicators in the Economic Survey 2022–23:
Indicator | Position |
Projected combined share of three major emerging e-commerce categories | Nearly two-thirds by 2027 |
Digital Banking Units | 75 |
Services sector credit growth since July 2022 | Above 16% |
Services PMI in December 2022 | 58.5 |
Estimated services sector GVA growth in FY 2022–23 | 9.1% |
According to the Economic Survey, digital payments, internet penetration, smartphone adoption, and the expansion of digital financial services supported India's services sector. During this period, banking, information technology, e-commerce, and contact-intensive services experienced a recovery following the Covid-19 pandemic.