When Will Indian Economy Be Back On Track?

The GDP growth in Q1 FY20 has contracted by 23.9% and the abysmal state of the economy has shaken the country’s spirit. However, it’s not just in India, as the progress of the world economy has been compelled to nosedive due to COVID-19. The unprecedented and challenging time caused us to take a deliberate pause from our work and social lives. Today as we continue to grapple with resuming the activities, we are not starting with zero but a negative growth. What makes the matter more concerning is the rising number of COVID cases in India, breaking the growth rate of per day case detection worldwide. Today, we are at a stage of all-time high COVID cases and all-time low GDP. But all is not lost.

This set back is preparing our nation for something better. Just as the string of a bow needs to be pulled back to give enough push for the arrow to glide forward swiftly, our nation is undergoing a similar pull and the pressure. Predictions suggest that the Indian economy will bounce back soon with slight recovery signs showing up in the last quarter of 2020 (CY) and an even better recovery rate throughout the first quarter of 2021 (CY). By April 2021, the Indian economy is predicted to register approximately 1% growth and maintain an upward trajectory in the remaining part of the year.

Recently, Prime Minister Narendra Modi gave a call for ‘Atmanirbhar’, asking the countrymen to emerge as self-dependent, and today it is the right time to reflect on the thought. This set back will allow us to look within and find strength. We are not in shackles but on our way to become ‘Atmanirbhar’. The sectors that will contribute significantly towards the growth of our economy are manufacturing and EXIM. The service sector will also help in pushing upward growth. India’s domestic market will experience a boost with newfound respect and acceptance for desi goods. A rise in self-employed and local businesses will also be witnessed.

At the end of 2021, our nation will emerge as a new India with refined thoughts, fresh perspectives, and self-reliance. The cumulative impact of all the above developments will make slogans such as Swachch Bharat, Make In India, and Atmanirbhar Bharat come alive. Today, it is not a time to panic but to look within for strengths and focus on the future that we can mould on the basis of those strengths.