Economy
Uncertain future
2nd wave hit harder that it was predicted
Experts were wrong in predicting the second wave. It came back stronger and affected the economy. First wave of Covid-19 had shrunk the economy. Long lockdown, social distancing measures, lack of treatment and no vaccines had made it difficult for businesses to operate and grow.
Retail and recreation activity across India had dropped by 25 per cent as of April 07, 2021 compared to February 24, 2021, according to Google mobility data. In the 2nd wave government has advantages over the last year. It has already vaccinated 7% of the population, which equals 10 crores. With the drive picking up, and less harsh measures, businesses will be able to deal with the second wave.
As per Business Standard: India’s very low Coronavirus death count (only about 170,179 deaths have been recorded as of April 12) and relatively very young population also help mitigate risks. Gross Domestic Product (GDP) is still likely to grow in double digits in 2021 given the low level of activity in 2020.
Industry leader Rajeev Bajaj warned the government about the second lockdown. He suggested that similar lock down will inflict similar harm to the country. As per his estimate incremental deaths due to Covid-19 is not more than 1% of the total number of deaths in India ( 7,50,000 deaths per month).
