Like most countries around the world, India has been reeling under the burden of the coronavirus pandemic.
One of the first steps that the government took to prevent the rapid spread of the contagious disease was to enforce a lockdown. Protocol such as social distancing and use of masks were put in place to keep the deadly virus in check while treatment of its victims began in earnest.
The lockdown also meant that workspaces and production units had to be shut down to prevent mass infection. Such shutdowns were only the start of an economic slump that took down the GDP of India into a never-seen-before contraction. India went from being one of world’s fastest growing economies to a struggling one within less than a year.
Production suffered, trade suffered due to mobility restrictions, and the retail sector also suffered a setback as only small grocery and essential stores were open between March and August this year. As the nation faced an economic downturn unemployment and reduced spending dealt a big blow to the economy.
Hitting rock-bottom in the past months, the Indian economy has only now started bouncing back as it gears up for a long-awaited recovery following the phased unlocking around the country.
Economic recovery will not be easy and adequate economic and fiscal stimulus will be crucial to a quick revival. In other words, the economy will require persistent efforts by the entrepreneurial section of the Indian market as well as capital support from the government.
With a Covid-recovery rate exceeding 90%, active cases in the country are coming down day by day and researchers are close to achieving a vaccine breakthrough. Indian consumers are growing hopeful and so is the market. With imports resuming and the market again welcoming foreign direct and portfolio investments, the economy is on the right track to recovery. Not only the service and retail sector, but the agricultural sector is also looking at reforms and increased revenue. This will be instrumental in ensuring economic well-being for the rural landscape of the country.
As part of the planned economic recovery in urban and rural India, many new government schemes and postal saving plans have been implemented to tackle the challenges at the grassroot level. The government is pulling out all the stops to turn India into a leading manufacturing hub for the world. This will not only help the economy recover but also boost its growth. There is a lot of pent-up demand that is expected to bring life back into the economy. The market has to sustain this demand to be able to write a new story of economic growth for India.
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