Coronavirus Shatters India’s Economy

According to a recent Google Mobility Report, which tracks cellphone data, trips to retail and recreation areas have dropped by 39 percent compared with before the pandemic. In Brazil and the United States, the only countries with more coronavirus infections, the drops were less than half as severe.

Mr. Modi’s government has provided some emergency relief, around $260 billion, but economists said too little flowed to the poor. Tax revenues have plummeted, some states are unable to pay health care workers and government debt is approaching its highest level in 40 years.

Still, Mr. Modi’s popularity keeps rising. A recent poll published in India Today, a leading newsmagazine, showed his approval rating at 78 percent, the highest in five years.

Part of this can be explained by the competition’s collapse. The biggest opposition party, the Indian National Congress, has been hit by defections, back-stabbing and a never-ending existential crisis on who should lead it. And Mr. Modi’s embrace of Hindu nationalism plays well within the Hindu majority, about four-fifths of the population.

“His protection of Hindu values is a big reason why I support him,” said Mr. Goyal, the seller of ladies’ suits. “If our self-respect isn’t alive, what good is the economy?”

A few parts of the economy are doing OK. Agriculture has been lifted by strong monsoon rains. In some cities, like New Delhi, many businesses are open again, though they might have new signs on the doors that say: “No more than 3 People Inside” or “Flat 40 Percent Off!”

Article source: https://www.nytimes.com/2020/09/05/world/asia/india-economy-coronavirus.html