Bad news for economy, recession in India is most serious in the world
There is not good news on the economy front. The Indian economy will have to bear the effects of the Coronavirus pandemic for a long time. A rating agency said on Thursday that the Indian economy would register a healthy growth of 11 percent in the next financial year (2021-22). But after that, the growth rate of India’s gross domestic product (GDP) from 2022-23 to 2025-26 will be slow to around 6.5 percent.
In a comment on the Indian economy, it said, “India’s gross domestic product growth rate will remain below pre-epidemic levels due to the weak state of the financial sector and the state of recession in India due to coronavirus is the most serious in the world. Such a situation has arisen due to strict lockdown and limited financial support.”
The economic impact of the epidemic is more serious
The rating agency said that the state of the economy is now improving. It will get further support as the vaccine is introduced in the next few months. We estimate that the Indian economy will register 11 percent growth in 2021-22. The country’s gross domestic product (GDP) will decline by 9.4 percent in the current financial year 2020-21. Fitch Ratings said the Indian economy was coming down even before the Covid-19 crisis began. The growth rate of GDP had come down to 4.2 percent in 2019-20. In the previous financial year, it was 6.1 percent. Due to this epidemic, 1.5 lakh people have died in the country.
Although India has lower epidemic mortality than Europe and America, the economic impact is far more severe. In the first April-June quarter of the current financial year, the economy of the country had fallen drastically by 23.9 percent. The economy was down 7.5 percent in the second quarter of July-September. The recession hit Asia’s third-largest economy.
