Explained: How Covid-19 battered Indian economy during 2nd wave

India's economy has been hit hard by the second wave of the Covid-19 pandemic. Though it appears that the economic damage during the second wave has been less than 2020, key growth indicators indicate otherwise. Here is all you need to know.

When early signs of the second Covid-19 wave emerged in India a few months ago, many experts predicted that the economic damage would not be as bad as the first wave in 2020. There were two primary reasons were behind the assertion — India had vaccines against the virus and no nationwide lockdown was imposed. But almost three months after the first signs of the deadlier second wave emerged, India is struggling to vaccinate its vast population and strict lockdowns remain imposed in almost all parts of the country. As a result, the economic growth projections shared earlier have changed drastically. Even SBI, the country's largest public lender, recently slashed its FY22 growth forecast. Data on jobs, income, household income, consumer sentiment and demand show that the second wave has had a devastating impact on India’s economy, especially on poorer citizens and smaller businesses. Even rural areas that were a saving grace during the first wave have been deeply affected due to surging infections.