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IS INDIAN ECONOMY IN RECOVERY MODE?

India's economy recorded its worst contraction in modern history when it reported a 23.9 per cent shrinkage in Q2FY21. Since then, the situation has improved with many economic indicators pointing towards a turnaround. But is it enough to call it a recovery?

With COVID-19 creating both supply as well as demand shock, it has pushed India towards its first recession in the last four decades

Amid the coronavirus pandemic, India has witnessed the steepest economic contraction amongst major economies around the world in the first quarter of FY21, resulting in millions of job losses and shutdown of many businesses. With COVID-19 creating both supply as well as demand shock, it has pushed India towards its first recession in the last four decades. While some of the economic indicators such as manufacturing PMI, unemployment rate, GST collections, industrial output, etc. have regained lost ground with many of them even surpassing pre-pandemic levels, eight core industries, air traffic, inflation, and investments in projects are still in the recovery phase. This BusinessToday.in graphicle looks at prominent high-frequency indicators to see if it's time to call it a recovery.