Covid Resurgence Could Derail Indian Economy: Oxford Economics

The Coronavirus resurgence in India has raised concerns that the economy's recovery could be derailed, Oxford Economics' latest report has said.

The Coronavirus resurgence in India has raised concerns that the economy's recovery could be derailed, Oxford Economics' latest report has said. With the state governments reluctant to reintroduce strict lockdowns, the report by the thinktank feels that though the economic impact will be much less severe than the second quarter of the previous fiscal, the growth momentum of the current fiscal's first quarter could be slower. High frequency data point to a slowdown in growth momentum in the first quarter, which is already built into our forecasts, it says. However at the same time, these indicators are yet to show a sharp deceleration in response to the rapid increase in Covid case counts.