Our economic recovery from the pandemic has been fairly steady
- Covid damage to the labour market has been a bigger concern than the hit to India’s capital stock since the middle of 2020
The Indian economy has got off to a good start in the current financial year, expanding at 7.8% in the three months that ended in June. This was broadly in line with most forecasts by private sector economists. However, it is likely that the growth rate will ease in the coming quarters, partly because of the lingering statistical effects of the fact that the first two waves of the covid pandemic were in the April-June quarter of 2020 and 2021. The result is that economic growth this financial year could be a bit lower than what it was in the 12 months ended March 2023.