World Bank has said India will see a degrowth rate of 3.2 percent in the current financial year. Crisil has pegged the contraction in the Indian economy to 5 percent. India’s central bank, the Reserve Bank of India (RBI), maintains that the Indian economy will contract by 1.5 percent in the current financial year.
Prime Minister Narendra Modi declared a national lockdown on 24 March to break the chain of contagion. The lockdown continued till 8 June, after which the government started to ease restrictions as part of the first phase of unlocking.
Full relaxation has not yet been restored, with educational institutions, cineplexes, and international air travel still restricted. Given the impact of the long-spanning lockdown, almost every global and domestic agency has projected “degrowth” (a concept suggesting shrinking economies can have benefits) in the current financial year (April 2020 – March 2021).
Indian equities tanked back in March, badgered both by Covid-19 and the lockdown. However, the major indices have recovered at least 40 percent from their March lows.
The Bombay Stock Exchange’s (BSE) 30-share sensitive index, Sensex, which was up on Tuesday for the fourth consecutive day, has witnessed almost a 10,000 point recovery from March lows