Explained: How 2nd Covid-19 wave will impact India’s economy

Economic activity in India has suffered due to localised lockdowns during the second Covid-19 wave, but the impact is unlikely to be as devastating as last year. Experts suggest that the economic impact will depend on how fast India manages to contain the second wave. Here is all you need to know.

An unprecedented rise in Covid-19 cases is likely to slow down India's economic recovery, but the overall impact will be milder in comparison to last year's devastation. Experts say that extent of economic loss during the second wave will primarily depend on how fast the chain of infections can be broken. While Covid-19 containment rules are less stringent compared to last year’s nationwide lockdown, economic activity is gradually declining as more states opt for stricter norms to contain rapidly rising daily cases. At the moment, cases are rising sharply as India reported nearly 3.8 lakh cases and over 3,000 deaths on Thursday.