ECONOMY

The uncertain recovery of the Indian Economy

This could better be understood with the impact of COVID-19 led lockdown on downside risk of Indian economy. Downside risk is the financial risk which tells us about the risk or uncertainty of the actual return being below the expected return.

We all are well aware about the severe disruption of both industrial production and consumer spending due to protracted lockdown nationwide (April – June). Citing Purchasing Manager’s Index (PMI) data of April, indicates dropping of Composite Output Index to 7.2 in the month which in itself is lowest as well as extreme in the 14.5 year of survey history, reflecting a collapse of business activity.

Though India after three months of long duration of lockdown has eased lockdown measures, new cases of COVID are surging resulted in India to be third most affected country in the world. If the infection rate will keep on escalating like this, only containment measures left to this populated as well as weak in healthcare system country is to call for lockdown again (as already some of the states like Bihar, Uttar Pradesh, West Bengal have announced full lockdown). This will further intensify the downside risk and so uncertainty about the recovery of Indian economy.

Author:

Anuradha

Department of Economic Studies and Policy

Central University of South Bihar

15 thoughts on “The uncertain recovery of the Indian Economy

  • Komal Gupta

    Very well written well done annu❣️🤗

    Reply
  • Shashi Ranjan

    Well done Anu…!!!!
    Keep going and keep Growing….!!!!

    Reply
  • Harshvardhan

    Well explained …..
    keep it up…….!!!

    Reply
    • Will try to come up with more…thank you!

      Reply
  • A great explanation, Indeed.
    Looking forward to many more write-ups from you.

    Reply
    • You will surely get such…thank you!

      Reply
  • A great explanation.
    Looking forward to many more write-ups from you.

    Reply
  • Well done..mam..keep growing

    Reply
  • Good
    Exactly to the point about our economy.

    Reply
  • Rupali Kumari

    Hope the uncertainty about the recovery of indian economy soon vanishes and everything gets back to normal..
    Nonetheless impressed by your writing skills…keep going..good luck

    Reply
    • Yes, hope and confidence are all required right now.

      Reply

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