The impact of Corona Virus pandemic in India has been largely disruptive interms of economic activity as well as loss of human lives. Almost all the sectors have been adversely affected as domestic demand and exports sharply plunged with some notable exceptions where high growth was observed. From April to June 2020, GDP of the country dropped by a massive 24.4%. According to the national income estimates, in the second quarter of the 2020-21 financial year (July to September 2020), the economy contracted by a further 7.4%. The recovery in the third and fourth quarters (October 2020 to March 2021) was still weak, with GDP rising 0.5% and 1.6%, respectively. This means that the overall rate of contraction in India was (in real terms) 7.3% for the whole 2020-21 financial year. Growth this year is set to be slow, but it will still be higher than it was before the pandemic. Consumption has been boosted by the relaxation of Covid-19 restrictions, while increased government spending has added impetus.
The rising commodity prices pose a downside risk. The consensus projects GDP...
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