Indian Economy Update - Sequential Slackening Continued In May As State-Level Restrictions Widened: ICRA

A man sleeps outside a closed-up store during lockdown restrictions in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg:

Indian Economy Update - Sequential Slackening Continued In May As State-Level Restrictions Widened: ICRA


BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICRA Research Report

The impact of the second Covid-19 surge and the widening state-wise restrictions led to a sequential decline in volumes across most indicators in May 2021.

This, in conjunction with a receding of the favourable base effect, led to a deceleration in the year-on-year expansion of many indicators in May 2021 relative to April 2021.

Nevertheless, given the distortion related to the lockdown base, we have compared the volumes in May 2021 with the pre-Covid levels of May 2019.

As many as 10 of the 13 non-financial indicators recorded lower volumes in May 2021 relative to May 2019.

With the fresh cases having moderated substantially and a phased unlocking underway, we expect the sequential momentum to improve over a variety of high frequency indicators in June-July 2021, although the evidence is mixed so far.

Click on the attachment to read the full report:

ICRA Economy Update - Month in Review May 2021.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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