Economy taking a nosedive

The Indian economy is shrinking and the country is officially into recession. The GDP contracted 23.9 percent on a yearly basis in the first quarter (April-June, 2020) of the financial year ’21, which captured the full effect of the pandemic-triggered nationwide lockdown. It grew at 5.2 percent during the same quarter last year. This is the sharpest decline in the economy since the nation started publishing the quarterly figures in 1996 and reportedly the worst among all Covid-19-hit G20 economies.
The data released by the national statistical office of the statistics & programme implementation ministry have proved what everyone feared. With Covid-19 cases also rising, this report of the Indian economy shrinking has further dampened the mood of the nation. Also, what worries most is that India is yet to hit the peak of Covid-19. Today’s data marks the likely onset of India’s deepest recession on record, which is widely expected to run through the second half of the fiscal year, as the rapid spread of the pandemic continues to weigh on demand, hindering a pickup in economic activity. Though the coronavirus-related restrictions have been gradually lifted, there has been an impact on the economic activities. The twin attack of Covid-19 and the failing economy will have serious repercussions on the nation. The big question is how prepared the government is. As of now, there is no clear-cut policy by the government of India on how to revive the economy and how to contain the spread of the virus. Before it’s too late, the government should wake up to the hard reality. Headline management and religious politics to distract the attention of the public might give it short-term reprieve but it is going to hurt the country in the long term. The government should identify the core area which needs to be addressed and work on it.