Indian economy hit by COVID-19 shrinks 7.3% in 2020-21

New Delhi (AP) — India’s economy, hit by the coronavirus pandemic, shrank 7.3% in fiscal 2020-21. The country is on the verge of another catastrophic outbreak of infectious diseases.

The economy grew at an annual rate of 1.6% in the January-March quarter, according to figures released by the government on Monday, but its recovery was curtailed by a relapse of the infection in March. It has set records and has spurred many states to announce widespread restrictions and blockades.

Although new infections and deaths have begun to decline recently, many countries are still somehow closed and many industries and businesses are unable to resume work.

A government study predicted in January that the fastest-growing economy of the major countries would recover, expanding by 11% in the current fiscal year, which began in April. However, some rating agencies say that the recent surge in COVID-19 cases is likely to slow growth to about 10%.

On Monday, India recorded over 150,000 new cases and over 3,000 deaths. Overall, the country has the second highest number of infections after the United States, with more than 28 million confirmed cases and nearly 330,000 deaths. Both numbers are considered to be a significant understatement.

According to experts, more than 400,000 new cases were recorded per day in May, and the infection appears to have subsided, especially in the capitals of New Delhi and Mumbai. However, there are concerns that the virus may still be widespread in poor rural areas where access to medical care is more restricted.

Many states and cities are still blocked, but some states and cities are beginning to relax restrictions on some types of economic activity. New Delhi Prime Minister Arvind Kejriwar has extended the current blockade until June 7, but announced that manufacturing and construction activities can resume on Monday with health measures.

“We need to balance controlling the spread of COVID-19 with allowing economic activity,” Kejriwar said in a virtual news briefing on Friday, according to the Indian press Pretrust. ..

Kejiriwar said the blockade was gradually lifted, with a focus on helping the most vulnerable people, including day laborers and migrant workers, many of whom work in factories and construction sites. When the government imposed a sudden lockdown last March, many of these workers remained unemployed overnight, causing great distress.

India’s economy grew at an annual rate of 0.4% in the October-December quarter after two consecutive recessions last year.