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.