- KredX Editorial Team
- 30 Dec 20
- business,Supply chain management

The pandemic-induced economic crisis came as an exogenous shock, creating a multi-sectoral impact and entailing a speculative future for economies and industries worldwide. The pandemic widened gaps in the global political and economic order, which was already faltering under trade wars. Several nations are reeling under the resultant implications of lockdowns and sporadic economic activities. Hit by the massive shock of pandemic, economies worldwide are discovering that the road to recovery is bumpy, and India is no exception. While the staggered re-opening of economic activities and festive season created optimism in the market, negative GDP contraction for the past two quarters has pushed India into a technical recession - an economic condition that is said to occur when there is a contraction of the gross domestic product for two consecutive quarters.
The widespread of the pandemic has accelerated the economic downfall, which was already perceptible before the pandemic outbreak. The GDP contraction of 23.9% in Q1 FY20-21 indicates the extent of the economic downturn due to the pandemic-induced lockdowns and social distancing norms. The quick estimate by the RBI for the second quarter indicates a further fall of 8.6%. As uncertainties continue to loom, developing a robust infrastructure and social capital will likely drive resilience.