Economic and population growth
With 1.2 billion people and the world’s third-largest economy in purchasing power parity terms, India’s recent growth has been a significant achievement. Since independence in 1947, a landmark agricultural revolution has transformed the nation from chronic dependence on grain imports into an agricultural powerhouse that is now a net exporter of food.
After growing at very high rates for years, India’s economy had already begun to slow down before the onset of the COVID-19 pandemic. Between FY17 and FY20, growth decelerated from 8.3 percent to 4.0 percent, with weaknesses in the financial sector compounded by a decline in the growth of private consumption
The COVID-19 pandemic has unleashed a global health emergency that has led to an economic crisis of historic magnitude. While India managed to contain the virus in the first wave in early 2020 through various interventions including a nationwide lockdown, the economy is expected to contract by 8% in 2020-21.