The coronavirus pandemic has forced india into its fifth recession since independence.
As the GDP contractions clearly indicate negative growth, the pandemic has crashed the Indian economy in the April and June period by 23.9%,
The gross domestic product is an indication of economic health, 23.9% is the sharpest decline for India till date. Most core sectors have faced collapse, with manufacturing down by nearly 40%, Construction by 50%, hospitality and transport also down, close to 50%
Agriculture being the only bright spot with an increase of 3.4% , alone could not offer the required growth.
When most countries including India went into a severe lockdown phase in April to June period of 2020. Most economic and business activities had come to halt.
In the month of May, India had also announced a $266 billion economic stimulus package, free food for the poor, jobs for migrant workers, and relief to small businesses, but these are not the only elements that pushed the fall. Nirmala Sitaraman while addressing the collapse said, “You are facing an act of god which might even result in contraction of the economy”,
With India finally lifting the lockdown and as the interstate vehicle services and transport are given the green signal, the Indian economy should begin its upward climb, however this is going to be a tough climb for an economy that is expected to contract by 6% in 2020.
