India’s economic output in the year 2021 would remain below the 2019 level, according to a recent survey by United Nations Economic and Social Commission of Asia and the Pacific. The report pins India’s real GDP growth at 7 per cent against a negative growth at -7.7 per cent last year.
“India entered the pandemic with subdued GDP growth and investment. Following one of the most stringent lockdowns in the world, the economic disruptions that the country experienced mounted in the second quarter of 2020. A subsequent change in lockdown policies and success in reducing infection rates supported an impressive economic turnaround in the third quarter.
“However, the pace of recovery moderated in the fourth quarter with estimated year-on-year growth still close to zero. Despite a robust reduction in new COVID-19 cases and the start of vaccine roll-out, India’s 2021 economic output is expected to remain below the 2019 level. Meanwhile, maintaining low borrowing costs while keeping nonperforming loans in check would be a challenge,” the report said.