India Covid: Economy sees record growth during deadly wave
1st Sept, 2021
When compared to the country's first countrywide shutdown in 2020, less pandemic restrictions allowed for more economic activity. In the April to June quarter, GDP increased by 20.1 percent over the same period the previous year. India's economy fell by 24 percent in the same time previous year. Private investments and consumer spending, according to India's senior economic adviser KV Subramanian, have aided the so-called "V-shaped" recovery. A V-shaped recovery is defined as a rapid decline that swiftly bottoms out and then quickly recovers. According to India's statistics ministry, growth was also fueled by manufacturing and construction. In the previous fiscal year, the Indian GDP fell by 7.3 percent. It is one of the world's largest economies that has been most impacted by the outbreak. The increase in GDP from April to June fell short of the country's central bank's projection of 21.4 percent growth for the quarter. According to some analysts, the Reserve Bank of India (RBI) will be more likely to leave stimulus measures in place till the end of the year. While many sophisticated economies across the globe have pumped massive sums of money into the economy to boost consumption, to spur growth, India's Prime Minister Narendra Modi has prioritised infrastructure investment, privatisation of state-owned enterprises, and tax changes. Experts believe India will continue to expand strongly, despite the fact that certain critical industries have yet to recover. Consumer spending, which is a significant engine of GDP, is considerably lower than it was before the epidemic. Experts believe that the possibility of another wave of coronavirus infections, as well as a slow vaccination campaign, may stymie progress.
Despite being Asia's third-largest economy, India's economy is still less than it was before the epidemic.