The Indian economy contracts 7.3%

The Indian economy registered a contraction of 7.3% in the period 2020-2021, the worst recession since Independence.

However, between January and March 2021, Asia’s third-largest economic power experienced a slight growth of 1.6%.
According to a study by Azim Premji University in Bangalore, last year’s national lockdown brought 230 million Indians to the poverty line, forced to live on less than $ 5 a day, or 375 rupees.
The Delhi Economy Monitoring Center reported that the terrible second wave of Covid-19, which killed about 160,000 people in eight weeks, caused at least 7.3 million informal sector workers to lose their jobs. , to which 90% of the Indian workforce belong, deprived of all social protection and, to a large extent, also deprived of the requirements to access emergency aid from the government.
In its latest report, however, the Organization for Economic Cooperation and Development (OECD) is slightly optimistic and expects a return to growth from 2021.
For the OECD, “India’s recovery will be driven by demand for consumer and investment goods.”
According to the report, published today, the coronavirus continues to affect the economic situation of the lower income strata, making supportive policies necessary “to increase investment and employment opportunities.”

Ginger Baker

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