Why India’s economy remains stable as West heads towards economic recession

By early recognition for the need to undertake supply-side measures and maximising the bang for the taxpayer buck on the demand side, India has been able to insulate itself in this time of great economic volatility globally The US, EU and a large part of the Western world heading decisively towards an economic recession, has puzzled several economists as to why India continues to clock solid numbers on economic markers, suggesting that India seems to remain insulated from global economic upheaval. Being completely conscious of the longevity of the pandemic crisis of this nature, many world-renowned economists had begun to preach to us that India’s economic response should be one grand re-inflation package in which we would spend a lot of money trying to re-inflate the economy upfront as early as April and May 2020. As described in modern economics, a modified barbell approach meant that instead of a one-time, big bang fiscal package, India would take slow measured steps, incorporating feedback from the ground from time-to-time. India’s GST collections crossed 1 trillion rupees after 8 months resting on strong growth-markers such as reduction in unemployment rates to pre-Covid levels, a strong NIFTY index higher than that of the previous year, pick-up in industrial activity, substantial improvements in port and railway freight traffic and electricity generation — thus indicating that India was heading towards a V-shaped economic recovery — a complete bounce-back.