Economy

India business resumption hits record high

Our Bureau Mumbai | Updated on August 16, 2021

Nomura India Business Resumption Index crosses a milestone, rising to 101.2 for the week ended August 15

The Nomura India Business Resumption Index (NIBRI) crossed a milestone, rising to 101.2 for the week ended August 15, from 99.6 last week, above the pre-pandemic level of 100 for the first time since the pandemic began.

Google mobility indicators continued their uptick, with the workplace and retail & recreation index rising by 1.7pp and 3.4pp, respectively, while the Apple driving index fell by 0.8pp. Power demand rose a solid 5.7 per cent week-on-week, while the labour participation rate eased to 40.4 per cent from 41.5 per cent.

Nomura India Business Resumption Index nears pre-pandemic level

The recovery from the second wave has been very swift: it took the NIBRI nearly 10 months to crawl back towards the 100 mark after the first wave of Covid-19, but less than three months to cross 100 after the second wave. " This supports our more positive growth outlook. We expect Q2 (April-June) GDP growth (data due 31 August) to contract sequentially (-4.3 per cent q-o-q, sa), but rise 29.4 per cent y-o-y, above both the consensus (19 per cent , as per Bloomberg) and RBI expectations (21.4 per cent )," Nomura said.

" Moreover, the continued rise in NIBRI during July-August suggests a strong sequential rebound is likely in Q3. To be sure, the economy is not yet out of the pandemic woods, but current dynamics support our above-consensus GDP forecast of 10.4% y-o-y in FY22 (year ending March 2022)," it added.

Published on August 16, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like