India, March 1 -- When the Indian economy contracted by 23.9% in the quarter ending June 2020-the biggest contraction among major economies-everyone feared an unprecedented economic crisis. To be sure, matters are still grim, and India's GDP will face its biggest ever contraction in 2020-21. But the economy came out of contraction zone in the December quarter with a growth rate of 0.4%. Almost all forecasts now predict a smaller contraction in 2020-21 and higher growth in 2021-22 than they had projected a few months ago.

Some independent economists maintain that the nature of recovery in the economy has not been equitable. There is evidence to suggest that while the relatively rich, both firms and individuals, have been spared the worst ...