Business activity in India recovers gradually in a V-shape in June: Nomura

Still, a third wave of Covid-19 remains a key risk to the economic recovery with vaccination rates slowing and mobility increasing in July, the company said in a note on Wednesday. Two.

The Nomura India Business Continuity Index (NIBRI), which tracks high-frequency metrics like mobility and power consumption, accelerated to 96.4 for the week ended July 18, from 94.9 the previous week.

Nomura’s Sonal Varma and Aurodeep Nandi economists said: “The first regular monthly data for June shows a gradual V-shaped recovery from the nadir index in May,” said economists. by Nomura, Sonal Varma and Aurodeep Nandi, said.

Movement stats like GoogleThe workplace and retail and leisure mobility indexes continued to increase by 2.4 percentage points (pages) and 5.1 percentage points, respectively, on a weekly basis.

Meanwhile, India’s vaccination rate slowed slightly to 3.6 million doses per day in July from 3.8 million doses in June, it said.

“With displacement continuing to increase through July and broader immunization coverage still at a quarter, the main risk to India’s growth recovery is the threat of third wave in this period,” said Nomura.