2.4 INDIA

While the Indian economy was recovering after the extensive lockdowns imposed due to the first wave of the pandemic during most of 2020, the second wave hit large parts of the country from March to April 2021 and interrupted recovery briefly. From June 2021, noticeable recovery was again underway. The second wave had less impact on the supply side, and consumer demand also continued to recover. Since state-wide lockdowns were imposed during the second wave as against nation-wide lockdowns during the first wave, they had a limited impact. The Omicron variant did not have a significant impact on the economy. The government also introduced a number of initiatives to help the economy, which brought growth back on track. The Reserve Bank of India (RBI) has declared GDP growth of 9.5% during fiscal year (FY) 2020–2021. RBI’s estimate for growth in FY 2021–2022 is 9.2%, which points to a healthy economy.