Contraction in India’s GDP Continues: lowest point in the last 40 years?

An all-time low

In the last quarter of 2020-2021, India saw a ray of hope as the GDP growth started to accelerate. However, in the financial year 2021, the economy has shrunk to -7.3 percent which is the lowest point in the last 40 years

 

Pandemic Effect

Amid the second wave of coronavirus, the decline is steeper than the people could have imagined. It is bound to have many adverse effects on the economic growth of the country and the living standards of countrymen.

 

After a gloomy recession last year due to the nationwide lockdown for three months, India’s Gross Domestic Product started to revive itself and after the sales in festivities, a rather positive outcome was expected.

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Influence in the Long Run

 

However, the effects of the second wave of the pandemic do not seem to be confined to this quarter only. It has affected all the estimates for the nation’s economic growth till 2022. While India was thought to achieve double-digit economic growth by various agencies. They have now cut it down. While Moody estimates India’s growth for the fiscal year 2022 to be confined to 9.3 percent, Barclays has put it out at 9.2 percent.

 

Amid some of the hope left for India’s better economic performance, the responsibility will be on demand-revival, reopening key economic activities, and some sincere efforts by the government through major and immediately effective key policies.

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