Omicron scare haunts India as economy heals from Delta blow

Nation witnessed a year of calamity and economic recession as it remained the second worst-hit country by the impact of Covid-19 pandemic as a result of the rampant Delta spread.

Even as the domestic economy is limping back to normalcy, the lesser lethal virus Omicron has knocked at the doors causing worry and panic among the people in general and businesses in particular. Consequently, the surging stock market lost oodles of points bringing it into bear grip. The traders are waiting with bated breath not knowing how the spread of Omicron would impact the economy.

The 68-day long lockdown, had a cascading effect, as almost all the manufacturing activities came to a grinding halt, unemployment shot up like never before, and people were left with minimal spending power.

The GDP slipped by a sharp 23.9 per cent during the first quarter of the current financial year. Barring agriculture, only a few essential were allowed during this period as the Centre tried to curb the spread of the virus across the country.

Signaling a technical recession for the first time in the history, the GDP for the subsequent quarter contracted by 7.5 per cent, though defying the most expected outcome of 12 per cent. The Indian economy had shrunk by 7.3 per cent in the 2020-21 fiscal owing to pandemic induced restrictions.

Chief Economic Adviser KV Subramanian has said that India is expected to log double-digit growth in the current financial year (April 2021 to March 2022).

Experts had said GDP growth rate will again be in positive territory from Q3 and Q4 this fiscal year due to normalised industrial activities and positive growth in public utility sectors. However, we need to take it with a pinch of salt as Omicron onset has again unsettled the equations.