Asia’s third-largest economy has pulled out of recession. It grew by 0.4 percent year-on-year in the last quarter of last year. Yet India’s gross domestic product fell for all of 2020. For the first time in almost a quarter of a century.
India’s gross domestic product decreased by 6.9 percent last year. But the last quarter has already brought a slight recovery. India’s economy experienced its biggest downturn in the third quarter, when its performance declined by more than seven percent year-on-year and by nearly a quarter compared to the previous quarter. By contrast, India’s economy has shruked by more than nine percent quarter-on-quarter in the last three months.
And this year’s first quarter may be no less successful for India’s economy. The number of new daily coronavirus cases decreased by almost 90 percent in mid-February compared to the highest levels last September, giving a chance for rapid release of anti-epidemic measures. This could accelerate the economic recovery even further. According to Nomura analysts, rapid economic growth can be expected for the period January to March of this year. But it will take some time to reach the pre-crisis level.