Quoted by the BBC, the easing of restrictions on the Covid-19 pandemic allowed more economic activity compared to India’s first lockdown in 2020.

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India’s gross domestic product (GDP) grew in the second quarter, from April to June, by 20.1% compared to the previous year. In the same period last year, the Indian economy shrank by 24%.

The Indian government’s chief economic advisor, KV Subramanian, said private investment and consumer spending have helped fuel Indonesia’s economic recovery, or what is known as the V-curve.

A V-shaped rebound is viewed as a sharp decline that quickly bottomed out, followed by a rebound. Manufacturing and construction are also driving growth, according to the Indian Ministry of Statistics.

India’s economy contracted 7.3% in the last fiscal year when the Covid-19 tsunami hit. India is one of the largest economies in the world, hardest hit by the Covid-19 pandemic.

The increase in GDP in the April to June quarter missed the Indian central bank’s forecast of 21.4% for the period. Some analysts say this will likely push the Reserve Bank of India (RBI) to hold stimulus measures in place until at least the end of the year.

While many developed countries around the world have given a great incentive to fuel spending. Indian Prime Minister Narendra Modi has prioritized infrastructure investments, state-owned enterprise privatization and tax reforms to fuel growth.