Answer: 

Introduction:

A V-shaped recovery is characterized by a quick and sustained recovery in measures of economic performance after a sharp economic decline.

Body:

Indian Economy has recently experienced V shaped recovery because:

• GDP Growth: As per official data, the country’s GDP grew by 20% in Q1 of FY 2021-22 in comparison to Q1 of FY 2020-21.
• Rise in Government Expenditure: Total expenditure of the government rose, especially on the capital expenditure front as part of the Atmanirbhar Bharat package. This has led to recovery in all major sectors of the economy.
• Revival of consumption and trade: There has been robust recovery in the services sector and robust growth in consumption and investment. India’s exports and imports have reached pre-Covid-19 levels and even grown beyond it in some areas.
• Record GST Collections: The gross Goods and Services Tax collections have crossed 1 lakh continuously for many months now. The collection indicates that the economy continues to show signs of recovery since the pandemic.

However, some experts are also hinting at a K shaped recovery because:

• More vulnerabilities of some sectors: Sectors like supply chain, logistics, hospitality are dependent on human interactions which remain limited due to social distancing constraints.
• Role of technology: Expansion of digital economy and society through 4G, smart phones etc. have helped the service and knowledge sector to continue their economic activities, while limiting the activity in manufacturing.
• External factors: Strong integration of the Indian economy with the global economy in addition to skewed import dependence of the Indian economy has impacted domestic recovery in different sectors in peculiar ways, such as disruptions from slowdown in import of raw goods and export of finished products.

Conclusion:

While experts may differ as to whether the Indian economy has experienced a V-shaped recovery or not, it is true that the Indian economy has shown resilience while also facing challenges. And it will continue to grow in the future.

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