The latest reading of high-frequency indicators shows that the pace of contraction in the Indian economy is reducing, though economic activity remains significantly below the pre-Covid level. A recovery from the present situation is likely to be slow, because the spread of the virus continues and lockdowns are being re-imposed by various levels of authority in several parts of the country.
This would not only hit consumption but also affect supply chains and hamper production. A gradual recovery will increase difficulties for both businesses and households, and make debt repayment more …
