NEW DELHI – India’s economy is on a sharp decline with its gross domesticproduct (GDP) shrinking by at least 7.7%, lowest since 1952.
According to economists surveyed by Bloomberg, the decline in GDP for theyear ending in March 2021 will be steeper than the 7.5% drop forecast bythe Reserve Bank of India. The economists attribute this drop to the rapidspread of coronavirus cases and measures to contain them that hurtbusinesses and households.
The Indian Ministry of Statistics admitted that the “estimates may undergosharp revisions due to disruptions caused by steps to contain thepandemic.” data collection was suspended coinciding with a nationwidelockdown.
Despite one of the strictest coronavirus lockdowns, India is now home tothe world’s second-highest virus infections — which at more than 10.4million, has kept the government from fully reopening the economy. Thecontraction in the nation’s GDP will also be the first since 1980, when theeconomy shrank 5.2%, and is set to be the worst slump in South Asia.
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India is expected to further suffer significant burden on its economy ascalls are growing for the Covid vaccine inoculation drive to becomplemented by more support from fiscal and monetary policy makers. Indiagranted emergency approval for the vaccine developed by AstraZeneca Plc andthe University of Oxford earlier this month, to pave the way to beginvaccinating its population.
With 10.4 million confirmed coronavirus cases, India has the second-highesttotal behind the United States. The government of India is planning to kickoff a vaccination drive on Jan. 16 to stem COVID-19 in the world’ssecond-most populous country that has so far reported almost 150,800virus-related deaths during the pandemic.
