When will India's economy recover from second Covid-19 wave? CEA Subramanian has the answer

Chief Economic Adviser Krishnamurthy V Subramanian expects the Indian economy to begin recovering from the Covid-19 second wave in about a month as states slowly begin to ease restrictions.

Subramanian noted that the second wave of the Covid-19 pandemic had affected the momentum of economic recovery following the first wave last year. He told news agency ANI that states easing restrictions and speeding up the nationwide vaccination drive will help begin the economic recovery process from July.

“The second wave of Covid-19 has affected the momentum of economic recovery. We expect a recovery in the economy from July. Now, States have started removing restrictions and if we speed up vaccination our economy will start recovering,” he said.

Read | Economic impact of 2nd Covid wave not likely to be large, support needed for recovery: CEA

Stressing particularly on vaccinations, the CEA noted that countries that had vaccinated a large chunk of its population were doing particularly better than those that didn't. If more people get vaccinated, it would lower the impact of the predicted third wave and not be as harmful, he said.

He added that there was positive growth in the GDP and pointed towards increased spending in the construction and infrastructure sector. This investment, he said was the reason behind the economy's growth.