You can view this scenario in two ways :
1. Where just like any other country in the world India is also facing the after effects of the pandemic and It will be back on it's feet once the pandemic subside.
2. We can also look it as a report card of how the 7 year term of NDA government have been doing. The data suggest the economy have been showing the weakness even before the pandemic started.
Let us look at the fundamentals of the economy at least the important ones for now:
Gross Domestic Product
When we look at the RBI report of FY21 we can see that after the decline in the wake of global financial crisis the Indian economy started it's recovery in march of 2013.But after the demonetization decision the growth started deceleration.
Demonetization and the poorly implemented GST spread the economy that was already on the downward spiral that it fell from 8% in 2017 to about 4% in 2020 just before the pandemic started.
GDP per capita
When we look at GDP per capita ie the GDP divided by the total population which will help you relate the economy t the life of that of a common man it has also been in a downward track for a long time.
Inflation rate
The sudden and sharp fall in prices in oil have allowed the government to tame the high retail inflation in the country ,while on the other hand it also allowed the government to collect additional taxes on fuel.
Moving ahead inflation is a big headache for India and for this reason the RBI is expected to avoid cutting interest rates in its upcoming credit policy review on June 4.
What does the future hold?
The biggest element of growth in India is the expenditure by common man in his private capacity. The demand for goods applies to 55% of the GDP .Growing domestic demand is a very crucial part if we have to recover the economy.
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