India’s GDP: Quickest to fall, fastest to recover

By Rohit Vaid New Delhi, Dec 25 : The Covid-19 induced turmoil showed weakness as well as resilience of Indias economy in 2020, as the country’s GDP recorded abysmal fall and breathtaking recovery.
The economy, which faced a severe slowdown prior to the pandemic, was decimated due to the lockdown imposed to curb the pandemic’s spread. Accordingly, the country’s GDP contracted by more than 23 per cent in Q1FY21.
Nonetheless, slow tapering of mobility and lockdown restrictions along with pent up demand narrowed this contraction to under 10 per cent in Q2FY21.
Consequently, the country entered into a technical recession.
Nevertheless, festive season, pent up demand and rise in discretionary spending coupled with massive liquidity and government stimulus triggered one the fastest recovery pattern seen anywhere in the world.
Some economy watchers described the phenomenon as a ‘V’ shaped recovery, whereas, others pointed it out as ‘U’ formation for the restoration of economic normalcy.