Do you agree that the Indian economy has recently experienced V- shapes recovery? Give reasons in support of your answer. (250 words) [2021]
V-shaped recovery refers to a situation where an economy experiences a sharp decline followed by a rapid and strong recovery, resulting in a V-shaped pattern. It is generally seen as a positive outcome, as it indicates that the economy has been able to bounce back quickly and effectively from a downturn.
The Indian economy has recently experienced a V-shaped recovery, as evidenced by several indicators.
- According to official data, the country’s GDP grew by 20% in Q1 of FY 2021-22 compared to Q1 of FY 2020-21.
- The Economic Survey has also projected a strong V-shaped recovery with an 11% growth in FY22.
- In the last four quarters during the Covid-19 pandemic, India is the only country that has registered two consecutive quarters of growth.
- This V-shaped recovery can be attributed to several factors, including the mega vaccination drive, robust recovery in the services sector, and robust growth in consumption and investment.
However, some experts argue that the recovery may be more complex and shaped like a “K,” with some sectors experiencing stronger recovery than others.
- The spatial and temporal spread of the pandemic has varied, leading to different impacts on different regions and sectors of the economy.
- Sectors that rely on human interactions, such as supply chains, logistics, and hospitality, have been particularly affected by social distancing measures.
- Additionally, the expansion of the digital economy and society through 4G and smart phones has helped the service and knowledge sectors to continue economic activity, while limiting activity in manufacturing.
- Finally, India’s strong integration with the global economy and skewed import dependence have also had an impact on domestic recovery in different sectors.
Overall, while the Indian economy has certainly experienced a V-shaped recovery, it is also facing challenges and may continue to see uneven recovery in the future.
