Indian Economy could see ANOTHER 2020 like Downfall: RBI and IMF warn before "Lockdown"

India's second wave is spooking jittery consumers and threatening the country’s economic recovery, add the fact that the local authorities are imposing renewed lockdowns and curfews to slow the spread of the virus.

But the restriction on business hours and profound curfews has undermined what was, projected to be a robust economic rebound after one of the world’s sharpest pandemic-induced contradictions last year.

IMF chief economist, Gita Gopinath who forecasted 12.5% economic growth for India warned that the calculation might prove to be wrong due to the new variables.

Due to a large surge in the number of infections, the state of Maharastra, home of the financial capital Mumbai, has ordered the shutdown the most of the non-essential businesses and weekend lockdowns, several metropolitan cities such as Delhi and Bangalore are also planning to follow their footsteps.

Many Indians fear tougher restrictions lie ahead, with struggling service sector businesses questioning whether they can withstand another shock.

Ritu Dalmia, a celebrated restaurateur who closed three of her six restaurants last year, called the surge “a disaster”. Her lunch business has halved in four days, while a 10 pm curfew in New Delhi has battered dinner demand. “There is a huge panic. This year will be a washout. How much can we survive and how long can we survive?”

The economic indicators were showing good results when the country’s number was 10,000 a day, economist didn’t account for the blanket lockdowns in major cities similar to the last year.

Many people were relying on the vaccine program of India which showed good signs in fighting the dull period of growth. But as the situation deteriorates day by day, it is nullifying any positive impact the vaccination drive had.

Many migrant laborers, traumatized after being stranded in cities by last year’s lockdown, have begun leaving cities like Mumbai and Delhi again.

Although vaccination crossed the 100 million mark, there are still 11,95,967 active cases in the country as of 12 April 2021. The total number of confirmed cases is 1,35,25,389 with 1,70,210.