Saudi Press

Saudi Arabia and the world
Friday, Aug 22, 2025

India’s double-digit growth in doubt amid massive surge in Covid cases

India’s double-digit growth in doubt amid massive surge in Covid cases

A record jump in Covid infections is threatening to derail India’s projected double-digit economic recovery from the pandemic-driven slowdown last year. Economists are reassessing their bullish forecasts.
The South Asian nation reported a record number of infections for a fifth straight day on Monday, with 352,991 new reported cases over a 24-hour period and at least 2,812 people have died. Total infection numbers since the beginning of the pandemic have exceeded 17 million.

“This second wave of virus cases may delay the recovery, but it is unlikely in Fitch’s view to derail it,” said the ratings company. Fitch stuck to its 12.8% GDP growth forecast for the 12 months through March 2022.

This month, the Reserve Bank of India also retained its growth estimate of 10.5% for the current fiscal year. However, Governor Shaktikanta Das said the surge in infections brings more uncertainty and could delay economic activity from returning to normalcy.

There are already signs of deepening contraction in retail activity in the week through April 18 relative to its pre-pandemic January 2020 level, according to Bloomberg Economics’ Abhishek Gupta. He said that’s a key risk for an economy where consumption makes up some 60% of gross domestic product.

“The surge in infections has led to the re-imposition of partial lockdowns in the more affected cities and states, and could trigger full lockdowns if the situation worsens,” senior investment director for Asian equities at Aberdeen Standard Kristy Fong was quoted as saying by the Economic Times. “This will have a knock-on impact on the re-opening of the economy and recovery prospects.”

Indian policymakers have signaled that they are ready to take steps to support growth, but some economists see the pandemic weighing on consumer confidence, which is the backbone of the economy.

Earlier this month, the International Monetary Fund raised its fiscal year 2022 growth forecast for India to 12.5%, from the 11.5% estimated earlier in January. It said, “Even with high uncertainty about the path of the pandemic, a way out of this health and economic crisis is increasingly visible.”
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
×