Despite the devastating Covid-19 growth earlier this year, India grew at a record pace in the first quarter of its fiscal year. GDP grew by 20% from April to June, recovering from last year’s sharp decline. The growth rate for the fiscal year ending March 2022 is expected to rebound from a decline of 7% in the current fiscal year to 9%.
But the pandemic has left its mark. Consumer demand and private investment are expected to decline further amid fears of a possible third wave of infections. The central bank is not only focused on getting the economy back to pre-pandemic levels, but also on the path to sustainable growth.
Four of India’s stock indexes have been among the 10 best-performing indices in Asia since the start of the year. These gains help increase the ratio of market capitalization to GDP. A record high of 188% is expected this year.