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India: Economic recovery reaches post-lockdown high – Nomura

In its latest report, the Nomura analysts noted that India's economic activity rose to a post-lockdown high in the week ended Aug. 16.

Key quotes

“After a prolonged period of flattening mobility trends since mid-June, Google workplace and retail & recreation mobility data have resumed their uptrend in August, even though they remain materially below pre-pandemic levels.”

“Nomura’s India Business Resumption Index stood at 73.7 for the week ended Aug. 16, up from 72.3 in the previous week.”

“The labor participation rate has steadily picked up (42.2 vs 40.6 in the prior week), though it is not all smooth sailing as the unemployment rate has risen (to 9.1% vs 8.7%), with a deterioration in both urban and rural areas,”

“The recovery is uneven, and the risk of a reversal in momentum from the second wave of coronavirus cases joining a ‘rolling wave’ in traditionally safer states in the south and the east remains high.”

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