Economics

India’s Fortunes Diverge From Rest of South Asia as Virus Surges

Photographer: T. Narayan/Bloomberg
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South Asia’s biggest economy has been ineffective in stamping out the coronavirus outbreak and it will show up in its economic performance: India is set to lag regional peers in the race to recovery.

The relative success of Pakistan, Sri Lanka and Bangladesh in containing the virus will help their economies recover at a faster pace than India, Capital Economics Ltd. said in a report to clients. India is now one of the world’s virus hotspots, with about 5.5 million cases.