India’s economy is rebounding at a record rate but still struggling to recover from the deepest recessions to hit the major Asian economy during the pandemic.
- The country’s gross domestic product rose 20.1% in the second quarter ended June, a period when India endured through one of the global worst Covid-19 surges in cases.
- The double-digit economic growth rate reflects a comparison with the previous year when the economy declined by nearly 24%, the economy’s sharpest decline in history.
- India was the first country to suffer from a major Covid-19 wave driven by the Delta variant, dragging a recovery that started in late 2020.
- The economic damage from the spring increase in Covid-19 cases was limited because the country did not impose a nationwide lockdown.
- Some cities and states imposed local restrictions, and many Indians reduced their movements voluntarily to protect themselves, with hospitals overwhelmed with Covid-19 patients.
In July, the IMF reduced India’s economic forecast to 9.5% from 12.5% for the fiscal year ending March 2022 after reducing it earlier in April. Unemployment is also expected to impact the country’s recovery.
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Source: The Wall Street Journal
