The Indian economy’s resilience will be tested by its ability to overcome a devastating outbreak of Covid-19, although no one’s yet doubting its potential to pull off the world’s fastest pace of growth among major economies this year. The economy is on track to grow 10% in the year that began April 1, according to the median of 12 estimates compiled by Bloomberg News. What Bloomberg Economics Says...“Widening state-level lockdowns over the last month now pose significant downside risks to our latest growth forecast." The biggest hit from the second wave of Covid infections has been to demand, with a loss of mobility, discretionary spending and employment, the Reserve Bank of India said earlier this month. “Even as India’s second Covid-19 wave starts to recede, the underlying economic toll now appears larger than we expected," Barclays economist Rahul Bajoria said.

Source: Mint June 01, 2021 00:33 UTC