India’s economic recovery is likely to be ‘U’ or ‘W’ shaped and not ‘V’: analyst

India’s economic recovery is likely to be ‘U’ or ‘W’ shaped and not ‘V’: analyst

Let’s Start this Interesting Article Shared on

New Delhi: India’s economic recovery is likely to be shaped like a ‘U’ or ‘W’ rather than a ‘V’ as the Kovid-19 will have a profound impact on a nation that is already epidemic, ahead of analysts for development. Was struggling said.
“Before the start of Kovid, the Indian economy did not participate in the global revival of GDP 2018 and 2019, slowing GDP growth to 4.5 percent,” Centrum Institutional Research said in a report on Monday.
For India, the outbreak of the epidemic came at the most timely, as the economy showed nascent signs of recovery after bold measures, both from the government and the Reserve Bank of India.
India quickly put a lockout to counter Kovid, which delayed the summit, but would lead to economic recovery. Given the growth in the last two years, the government has limited resources to support demand in the economy. It has been said that the impact of Kovid will be deeper in India and recovery will be more ‘U’ or ‘W’ than the ‘V’ expected in some advanced economies. ”
Economic recession and recovery are often charted in the most common shapes such as U, V and W.
The V-shaped deceleration begins with a strong fall, but troughs and recovers quickly. The W-shaped slowdown starts like a V-shaped slowdown, but stops again after false signs of recovery are displayed. Also known as double-dip recession, as the economy collapses twice before a full recovery.
More on Kovid-19

In a U-shaped recovery, the economy experiences a sharp decline without a clearly defined trough, but instead a relatively healthy growth returns to its previous peak after a period of stagnation. The U-shaped recovery is similar to the V-shaped recovery, except that the economy has a longer time of recession as well as a longer time rather than an instant rebonding.
Centrum said India delayed reaching the peak for a lockdown beginning on March 25.
“However, the initial lockdown involved infection and impermanence; it would also delay the peak. Some estimates say India may reach the peak in late November. This extended time of exit will also keep people at home for longer. , Which will be affected. Economic revival, “it said.
Even before this, Kovid-19 India was struggling for development, as the economy had to cope with the shortage in demand.
He said, “Against this backdrop, India will take longer to come out of this recession. We expect FY15 demand to return only after 2 years, i.e. for many sectors in FY14.”
Noting that the rural economy is likely to recover faster than the urban economy, the brokerage stated a general monsoon forecast, with its timely onset of prospects for a bumper crop production as well as the rise in the minimum support price (MSP) And more recently with Rural Focused. The programs are well developed for the rural economy.
“This bodes well for rural income and demand. These developments are likely to please farmers and policy makers as they have the potential to mitigate the impact of Kovid. Amidst the contraction of imminent growth in FY 2121, these trends are a Appears as a silver lining. ” .
Different countries have different stages of opening after complete lockout for 60–90 days.
Never on such a large scale lockout has ever been recorded in history. This extended lockdown has a serious impact on the world economy.
“It is true that we have not yet found the vaccine, but we are seeing epidemics go out in many countries and people are finding ways to try to return to the ‘new normal’,” it said. Changes are likely to occur in the dynamics of industries such as airlines, entertainment and real estate.


Leave a Reply

Your email address will not be published. Required fields are marked *