India’s economy is recovering amid the second wave of Covid-19

India’s gross domestic product grew by 20.1 percent in the second quarter of 2021.

REPUBLIKA.CO.ID, NEW DELHI – Indian Economy rebound at record levels in the three months to the end of June, even as a second wave of Covid-19 hit the country. Looser pandemic restrictions allow more economic activity compared to Lockdown the first citizen of the country in 2020.

The gross domestic product (GDP) grew in the quarter from April to June compared to the previous year by 20.1 percent. In the same period last year was the economy India 24 percent decline, reported in BBC, Wednesday (September 1st).

The Indian government’s chief economic advisor, KV Subramanian, cited private investment and consumer spending to fuel the so-called “V-shaped” recovery. A V-shaped rebound is viewed as a sharp decline that falls off rapidly, followed by a rebound Spicy.

Manufacturing and construction are also driving growth, according to the Indian Ministry of Statistics. India’s economy shrank by 7.3 percent in the last fiscal year. It is one of the largest economies in the world that has been hardest hit by the pandemic.

The rise in GDP in the April to June quarter fell short of an estimate by the country’s central bank of 21.4 percent growth for the period. Some analysts say this will increase the likelihood that the Reserve Bank of India (RBI) will hold stimulus measures at least until the end of the year.

While many developed countries around the world have made a big push to boost spending, Indian Prime Minister Narendra Modi has prioritized infrastructure investments, privatization of state-owned companies and tax reforms to encourage growth. Experts are optimistic India will continue to experience strong growth, although some key sectors are not yet in sight Rebound.

Consumer spending, an important growth driver, is still below the pre-pandemic level. According to experts, the risk of a renewed wave of coronavirus infections and a sluggish vaccination program could inhibit the dynamic. Although India is the third largest economy in Asia, it remains smaller than it was before the pandemic.