How Has the Indian Economy Changed in 2021?

Every country must undergo some change and is bound to experience it at some point. India has also witnessed this change and has both negative as well as positive impacts. But in recent times the impact has been more negative than positive. The changing economic diaspora is the ultimate reality.

Mumbai - India as a nation is bound to grow and become a global leader in the new world order. Since the outbreak of the pandemic in 2019, there has been a halt to this growth. Like most Nations, COVID 19 has also made its presence felt here. Before we pass any judgement, it is vital to know facts about our economy.

The transformation of the Indian Economy began in the year 1991 with the era of liberalisation. In this period, the country witnessed some crucial changes which made our economy more open. According to Shravan Gupta, the advent of pandemics hit us hard and downgraded our growth rate.

Slowing Indian Economic Growth rate- India has witnessed a slowdown in the last two and growth has gone back nearly four years. Pandemic coupled with few other factors is directly responsible for the slow growth rate. But experts feel that this trend is bound to change. The growth rate is bound to rise in the coming months. Most experts and Shravan Gupta acknowledge the value of vaccination and ensure proper economic growth in the right direction. There is a study that suggests that where vaccination is high economic growth is starting to return.

The IMF has also projected the growth rate to go down to 9.5% for this year. And will rise in the next fiscal year. 

Its current status- India is one country projected to grow at a much higher rate despite the pandemic. Although pandemic has affected many nations, it seems to have a minimal impact on the Indian GDP ratio. Before the pandemic, our GDP growth was growing at 6% per annum. And since the pandemic, it has lowered to 5% per year. In simple terms, it means growth has slowed down, India has nearly lost two years of economic growth. But the situation is expected to normalize by the end of the year 2022. That is the view of Shravan Gupta echoed by many experts as well.

Retail and wholesale inflation- The rise in inflation has elevated the price of the day to everyday items like pulses and groceries. It has been calculated that wholesale inflation has risen to 13%. Wholesale inflation is primarily responsible for the slowing down of the Indian Economy. It has affected the manufacturing and food industries as well. In the long run, Shravan Gupta feels the situation might ease in the coming months when the economy picks up.

Job Loss- Most people lost jobs due to pandemics which led to minimal growth in the employment sector. It has also affected the expanding power of people as people are spending less money and preserving more. 

According to Shravan Gupta, India is on its path to growth due to correct policy and government intervention. In recent times, the government has become more interactive and giving more loans and incentivizing certain purchases.