India is Moving Towards Economic Revival (Economy Revival)
- The Indian economy is headed towards a V-shaped recovery in 2021. This has been said by the Indian Chamber of Commerce and Industry (ASSOCHAM).
- Due to the COVID-19 crisis and insufficient financial catalysts, there is a possibility that the economic revival in India will be shaped by a long U-shape.
What are the shapes of economic revival?
This is the best scenario in which the economy gets strengthened very fast. Any loss that the economy has incurred (such as purchases in retaliation after lock-down) is immediately compensated in this figure.
In this too, the economy gets back on track and starts on the path of normal growth.
In this, the economy has to struggle and the rate of growth remains low for some time and after that gradually reaches an underwater oral level.
In this, the rate of growth repeatedly falls and increases and finally reaches the normal rate. Thus a chart with the shape of W is formed.
This is the worst scenario in which the economy remains low once it collapses and it takes a lot of time to get back on track.
This recovery is far from reality percent because in it growth is very high and lasts for a long time at high levels.
On what factors the shape of economic revival depends?
The shape of economic revival is determined by the pace and direction of Gross Domestic Product (GDP). Apart from this, there are many other factors, such as fiscal and monetary measures, consumer’s income and sentiment etc.
Source – The Hindu