India undergoes worst economic stagnation since independence

Asia’s third-largest economy grew by 1.6 per cent in the fourth fiscal quarter of 2021 after exiting its first “technical recession” since 1947 following two successive quarters of contraction.

The Indian economy contracted by 7.3 per cent in fiscal 2020-21 as the country battled the first wave of COVID, as against a 4 per cent growth in 2019-20.

According to a study, about 230 million Indians fell into poverty due to the pandemic last year, which defined the poor as those living on less than $5 (375 Indian rupees) a day.

Indian media have claimed that the COVID lockdowns and limited transportation have negatively affected the economic data.

According to the report, in 1979, a decline in the Indian economy was witnessed and was recorded at 5.2 per cent and now is at its worst recession since independence.

Per Indian economists, the economy has been in recession five times since 1947.

India's economic growth has been slowing down for the past five years and now the Asian country’s economic outlook is dire.

"We expect a decline in economic activity in the April-June quarter, followed by a rebound, resulting in real, inflation-adjusted GDP growth of 9.3 per cent in the fiscal year ending March 2022 (fiscal 2021) and 7.9 per cent in fiscal 2022," a report of a rating agency stated, adding that the impact from potential subsequent waves remain a risk to its forecasts. 

The rating agency in February had forecast a 13.7 per cent growth in the current fiscal.