By Aditya Raghunath
Investing.com -- A report by ICRA (NS:ICRA) Ratings said that the easing of COVID-19 restrictions has deepened the roots of India’s economic recovery. “With the further easing of the State-wise restrictions, especially across the southern States, the roots of the economic recovery deepened in July 2021. Despite a normalising base, eight of the 15 high-frequency indicators recorded an encouraging improvement in their year-on-year (YoY) growth in July 2021,” said ICRA Chief Economist Aditi Nayar in the report.
10 out of 13 non-financial indicators showed upward movement in July 2021 compared to June 2021 though the pace had slowed. GST e-way bills, fuel consumption, electricity generation, output of Coal India Limited (NS:COAL) (CIL), vehicle registrations, domestic passenger traffic, etc. were better in July 2021 compared to June 2021.
“As the states started unlocking, the mobility for retail and recreation posted a sharp improvement from around 60% below baseline at end-May 2021 to 23% below baseline by end-July 2021 (seven-day moving average),” said Nayar.
However, July 2021 was worse for indicators like output of passenger vehicles (PVs), scooters and motorcycles. The report said this was due to the base effect.