Impacts of Covid-19 surge on the Indian Economy

In past one month India has seen a major surge in Covid cases and this unquestionably has a direct correlation with the economy given that several states and cities have announced either full, partial or weekend lockdowns. Last year it was seen that the GDP was impacted by 24.2% and this year according to the second advanced estimates 2020-21 it is expected to suffer a GDP contraction of 7.96%. According to senior economists Santosh Mehrotra 'this time the areas affected by covid are less but the cases over there are extremely high' with that he also mentions that these states effected with covid makes a significant impact on the GDP of the country. Adding to that BJP spokesperson Gopal Aggarwal says that. 'It seems that government will not go for a massive lockdown but instead will focus of specific areas which have been badly affected by the virus.'