The second wave of Covid-19 has started taking a toll on India’s economy

After a hasty and unplanned two-month-long lockdown in 2020 pushed the Indian economy into a technical recession, the Narendra Modi government has made it amply clear that it does not plan to implement a similar measure now even as the country is in the grips of a brutal second wave of Covid-19. In fact, on April 21, prime minister Modi told state chief ministers that they must use lockdowns as the last resort to stop the spread of coronavirus.

But this dismissal of lockdowns does not mean this wave will leave India without serious economic destruction.

Several indicators show that India’s economy is already feeling the stress of the ongoing deadly pandemic wave. While some of this impact is due to local-level restrictions that some state governments have imposed, others are because citizens are choosing to stay indoors.