The government is optimistic about the Indian economy’s trajectory of recovery and expects a V-shaped recovery, said TV Somanathan, Expenditure Secretary, during a recent online conference. “I must tell you that we are somewhat optimistic that among the various shapes of recovery....we are expecting something like a V-shaped recovery. This year being at the bottom of the V and the next year being closer to the top of the V,” Somanathan said. The statement came amid initial improvements in various indicators from rising goods and services tax collections to falling unemployment, showing a gradual pick-up in economic activity since May.
However, Gita Gopinath, Chief Economist with the International Monetary Fund (IMF) cautioned that an initial spike may not lead to a 'V' shaped recovery. “My fear is that the beginning of the recovery will show a spike initially, and then going forward, I think we could end up with something much more flat.”
We have a look at what India's economic recovery post COVID-19 outbreak might possibly look like:
What will India's Economic Recovery Post COVID-19 Outbreak Look Like?
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