Economic impact of 2nd Covid-19 wave could worsen in coming weeks. Here’s why

The economic impact of the second wave could worsen in the coming weeks as more states are imposing stricter localised lockdowns. Here is all you need to know.

A sharp surge in daily cases during the second wave of the Covid-19 pandemic has led to stricter lockdowns in most states. Brokerage firm Nomura recently said in a report that the pace of business activity resumption has taken a huge knock due to the mobility restrictions across Indian states. Business activity in India has started plummeting since the second week of April and the economic situation could get worse, added the Nomura report. The Nomura India Business Resumption Index, which tracks a set of high-frequency economic indicators including mobility, has fallen nearly 16 percentage points below the pre-pandemic level.