Home Economy Indian economy is going to be on a ‘slow burn’ in 2021

Indian economy is going to be on a ‘slow burn’ in 2021

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This isn’t surprising, given that state governments across the country have resorted to lockdowns and curfews to control the spread of the pandemic, impacting economic activity in a big way.

With a lockdown in place, street vendors can’t sell their wares, taxi and auto drivers can’t make as much money as they used to, and small shops selling non-essential items can’t do business. Over and above this, it has become clear that the large corporates have driven up their profits to record levels during the pandemic by trimming costs. The cost savings were done by renegotiating contracts with their suppliers and contractors, which happen to be smaller businesses.

Of course, the negative impact of the lockdowns this year has not been as bad as the one last year. As the RBI report puts it: “Organized and automated manufacturing… services that can be delivered remotely and do not require producers and consumers to move… these…

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