India Covid: Economy sees record growth during deadly wave
India's economy rebounded at a record rate in the three months to the end of June even as a devastating second wave of Covid-19 hit the country. Looser pandemic curbs allowed for more economic activity compared to the country's first nationwide lockdown in 2020. Gross domestic product (GDP) grew by 20.1% for the April to June quarter compared to a year earlier. During the same period last year, India's economy shrank by 24%.
The Indian government's chief economic adviser KV Subramanian pointed to private investments and consumer spending for helping to boost the so-called 'V-shaped' recovery. A V-shaped recovery is considered to be a sharp downturn which quickly bottoms out, followed by a sharp rebound. Manufacturing and construction also drove growth, according to India's statistics ministry.
The Indian economy shrank by 7.3% in its last financial year. It has been among the world's major economies to be hit hardest by the pandemic.