India is slowly emerging from a deadly second wave of COVID-19 and the economic indicators are only beginning to capture the scale of the impact.
The economy contracted 7.3 percent in the last financial year, its first full-year contraction in the past four decades. This, even as fourth quarter saw the economy grow by 1.6 percent aided by higher government expenditure and some pick-up in the manufacturing sector.
The Reserve Bank of India (RBI) in its paper on the state of the economy has projected that the second wave may leave a dent of as much as Rs 2 lakh crore on economic output.
Amid all this, skyrocketing fuel prices and higher food prices have propelled India's retail inflation race to 6.3 percent in May, breaching the upper limit of the RBI's inflation target.
However as COVID cases have started to plateau, the economy is slowly opening up. More than 21 crore people have received their first vaccine dose and close to 5 crore people have received both doses. The pace remains a bit slow, but it is expected to pick up in the next few weeks.
To understand where the economy is headed from here and what the recovery timeline is, CNBC-TV18's Shereen Bhan spoke to Chief Economic Advisor Krishnamurthy Subramanian; CP Gurnani, MD and CEO of Tech Mahindra; and Prashant Kumar, MD and CEO of Yes Bank.
The panel also discussed whether it is time for the government to loosen its purse strings further in order to finance more welfare schemes.For the full discussion, watch the video.