As COVID-19 spread around the world, India faced a big economic challenge. The Reserve Bank of India shared that the country’s money (Gross Domestic Product or GDP) went down by 7.3% in the year 2020-2021 because of strict lockdowns affecting different parts of the country.

Many people lost their jobs because of the pandemic, and in April 2020, the unemployment rate in India went up to over 23%. This especially affected people who work in jobs that aren’t part of big companies, known as the informal sector. Small businesses, which are like the backbone of India’s economy, also had a tough time. Micro, Small, and Medium Enterprises (MSMEs) saw a 20.6% decrease in how much they were worth in the first part of the year 2020-2021, according to the Ministry of Statistics and Programme Implementation.

Even though times were tough, the farming industry showed that it could handle the challenges. It actually grew during the pandemic, thanks to changes that were made to help farmers make more money and boost the rural areas.

As more people got vaccinated, India’s economy started to get better, and in the first part of the year 2021-2022, the money in the country went up by 20.1%. But there were still some problems, like prices going up, issues with getting things from one place to another, and things being uncertain around the world. One big lesson from all of this was that using technology and new ideas is really important for keeping the country’s money strong. Whether it’s in healthcare, education, or buying and selling things online, using technology helped India face the challenges better.

In the end, India showed that it’s strong and can adapt to tough situations. As the country keeps moving forward, it’s important to focus on making things better for everyone, using smart ideas, and working together.