The economy of India has seen a significant downfall during the last two years. As India battled rigorously with the covid 19 pandemic, many people's lives got endangered by its financial impact during the battle. And now it's the Russia-Ukraine war that has taken up the hype, creating tension across the globe.

The Indian economy suffers a considerable loss from the global economy because of such looming troubles. Many industries suffered from this global pandemic, including trade and transportation, tour and travel services, entertainment, and media industries, etc.

However, many have also found ways to bring back their monetary stability on the track. Many businesses bloomed with the help of the pandemic like medical and online pharmacies, e-commerce industries of packaged food and online groceries, online entertainment, and digital media industries.

This list of affected people can go on long, but the question today is, are high inflation and supply chain disruptions hamper economic recovery? Let's dive into the article to know more about the causes.

What are the causes of hampering economic growth


The following factors hamper capital growth and are equally responsible for limiting economic revival.

Scarcity of labour

Due to a labour shortage, many industries have stopped functioning to their total efficiency. Like many other countries throughout the world, India is experiencing an energy crisis due to a lack of coal. The situation has been made worse by a supply-chain breakdown that has resulted in high import charges.

Some of the major critical barriers in a labour shortage include overburdened transportation route making and escalating raw material and logistics prices.

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Inadequate of semiconductors

The lack of availability of electronic and industrial components like chips and semiconductors used in cars and computers is also causing a more significant crash in economic recovery. This inventory recession has gradually slowed down the economic revival. In the recent past, automakers have faced chip scarcity, which has resulted in significant production reduction.

Heavy inflation in food supplies

We can not deny that food and home utility products are essential for our household, and food prices are taking nearly half the inflation of India's economy. With higher food prices, consumers demand consumer durable goods and other non-essential commodities since a large proportion of Indian households' disposable income goes on food and essential items.

Insufficiency in energy resources

The Russia-Ukraine crisis is affecting Water and food management globally. The possibility of a power crisis resulting from coal shortages could stifle supplies and stifle production in critical industries, slowing the rate of economic recovery.


Even though the countries are doing their best to revive the economic revival, the increase in inflation is disturbing it in succeeding. In the coming years, we should be more optimistic and use the workforce to its full potential.

Author's Bio: 

The economy of India has seen a significant downfall during the last two years. As India battled rigorously with the covid 19 pandemic