Coronavirus disaster leaves deep psychological scars on India's economy

Banks begin to slash FY22 growth forecasts; personal credit defaults and unemployment rising

Expectations for India's economic growth are being revised sharply lower as a surge in people losing their jobs and defaulting on debt suggest a more halting recovery from the financial shock of the COVID-19 pandemic.

Economists are downgrading their estimates as a range of data - from the rate of cheques bouncing to the amount of mortgaged gold jewellery up for sale - shows the extent of the economic damage from a devastating second wave of the disease.

Some observers also fear the psychological blow from the virus disaster that ripped through India this year killing tens of thousands of people will