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Asia-PacificMay 4 2021

Can India’s economy withstand the Covid-19 surge?

As India grapples with a brutal second wave of Covid-19, its economy is holding up and various steps are being taken to limit the damage. 
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Can India’s economy withstand the Covid-19 surge?

India is experiencing one of the most shocking increases in the number of Covid-19 cases since the start of the pandemic. The country saw daily cases peak at 414,000 cases per day on May 6th, and at the time of writing an official death toll of over 262,000, although estimates on the ground suggest the number could be as much as three times higher. 

Amid this devastating wave, the country’s economy lumbers on. In a note published by S&P, the ratings agency stated that a slowdown to the country’s recovery might prompt a revision to its base-case assumption of 11% growth during the financial year to 2022. “The country already faces a permanent loss of output versus its pre-pandemic path, suggesting a long-term production deficit equivalent to about 10% of gross domestic product,” it cautions. 

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Kimberley Long is the Asia editor at The Banker. She joined from Euromoney, where she spent four years as transaction services editor. She has a BA in English Language and Literature from the University of Liverpool, and an MA in Print Journalism from the University of Sheffield. Between degrees she spent a year teaching English in Japan as part of the JET Programme.
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