India's economy contracts 12% in Q1 FY22

18 Jun 2021 CW Team

The economy contracted at its worst rate on record in FY21, with a contraction of 7.3%, after the Centre announced a 2.5-month unplanned lockdown with only four hours' notice, crippling the economy in the first quarter with a massive 23.9% contraction, which improved to -17.5% in the second quarter.

However, the economy showed a sharp V-shaped recovery from the second half, when it posted 40 basis points of positive growth, with Q4 clipping at 1.6%, containing the year's overall contraction of 7.3%.

Tanvee Gupta Jain, an economist at UBS, says the indicator suggests that economic activity contracted by an average of 12% in the June 2021 quarter, compared to 23.9% in the June 2020 quarter, based on in-house data from the UBS-India activity indicator.

Even though the indicator rebounded to 88.7 in the week ending June 13, up 3% from the previous week, many states eased localised mobility restrictions beginning in May's last week.

Expect a gradual recovery this time, rather than the V-shaped recovery seen in 2020, as consumer sentiment remains low due to pandemic-related uncertainties. According to Tanvee Gupta Jain, the economic recovery from H2 will gain traction as vaccinations ramp up and the resulting control of the pandemic boost consumer and business confidence.

The second wave's lockdown lasted slightly longer than the first wave's 2.5 months, and industrial/construction activities were allowed on a limited scale this time.

Significantly, there is positive momentum on the vaccination front, with daily doses increasing to 3.2 million in the week ending June 13 from 2.5 million at the end of May.

Image Source

Also read: Covid-19 second wave: PM Modi asks nation to ‘repair and prepare’

According to a brokerage report, state-imposed lockdowns in April and May to contain the second wave of the deadly Covid-19 pandemic resulted in the economy contracting by 12% in the June quarter, compared to a 23.9% contraction in the same quarter in 2020. The economy contracted at its worst rate on record in FY21, with a contraction of 7.3%, after the Centre announced a 2.5-month unplanned lockdown with only four hours' notice, crippling the economy in the first quarter with a massive 23.9% contraction, which improved to -17.5% in the second quarter. However, the economy showed a sharp V-shaped recovery from the second half, when it posted 40 basis points of positive growth, with Q4 clipping at 1.6%, containing the year's overall contraction of 7.3%. Tanvee Gupta Jain, an economist at UBS, says the indicator suggests that economic activity contracted by an average of 12% in the June 2021 quarter, compared to 23.9% in the June 2020 quarter, based on in-house data from the UBS-India activity indicator. Even though the indicator rebounded to 88.7 in the week ending June 13, up 3% from the previous week, many states eased localised mobility restrictions beginning in May's last week. Expect a gradual recovery this time, rather than the V-shaped recovery seen in 2020, as consumer sentiment remains low due to pandemic-related uncertainties. According to Tanvee Gupta Jain, the economic recovery from H2 will gain traction as vaccinations ramp up and the resulting control of the pandemic boost consumer and business confidence. The second wave's lockdown lasted slightly longer than the first wave's 2.5 months, and industrial/construction activities were allowed on a limited scale this time. Significantly, there is positive momentum on the vaccination front, with daily doses increasing to 3.2 million in the week ending June 13 from 2.5 million at the end of May. Image Source Also read: Covid-19 second wave: PM Modi asks nation to ‘repair and prepare’

Infrastructure Urban

08 Apr 2026

UniAcoustic, Vicoustic Form UniVicoustic Alliance

UniAcoustic, part of United Group, has acquired a strategic stake in Portugal-based Vicoustic, forming a new alliance branded as UniVicoustic. The agreement, signed in Mumbai, marks a significant cross-border partnership aligned with evolving India–EU trade dynamics.The collaboration brings together Vicoustic’s global expertise in architectural acoustic products with UniAcoustic’s manufacturing scale and distribution capabilities. The combined platform aims to expand market reach, integrate technology and optimise supply chains across key regions.The development comes amid progress in th..

Infrastructure Urban

08 Apr 2026

Dalmia Bharat, Delhi PWD Revamp Under-Flyover Spaces

Dalmia Bharat has partnered with the Public Works Department (PWD), Government of Delhi, to redevelop select under-flyover spaces and a road stretch into sustainable urban hubs. The agreement covers key locations including Lodhi Flyover, Oberoi Flyover, Mangi Bridge and Hanuman Setu.Under the initiative, the company will undertake design, landscaping, plantation and long-term maintenance of the sites, with a defined upkeep period of three years after completion. The project aims to improve urban aesthetics while promoting environmental sustainability and biodiversity restoration in high-densit..

Infrastructure Urban

08 Apr 2026

Versigent Debuts as Independent NYSE-Listed Company

Versigent has launched as an independent publicly traded company following its separation from Aptiv, with shares commencing trading on the New York Stock Exchange under the ticker “VGNT”. The move marks a significant milestone in the company’s transition into a standalone global player in power distribution systems.The company specialises in the design, manufacturing and delivery of low- and high-voltage electrical architectures, supported by engineering centres across four continents and manufacturing operations in over 25 countries.Versigent reported revenues of $8.8 billion, net inco..