‘Roots of economic recovery deepen as restrictions ease’

July sees ‘encouraging’ improvement in 8 of 13 high-frequency indicators: ICRA

With the easing of COVID-19-related curbs by States, the roots of economic recovery deepened in July 2021, ICRA Ratings said in a report. The unlocking in the country has manifested itself in improving performance across various high-frequency industrial and service sector indicators, mobility and toll collections in July 2021, according to the agency. “With the further easing of the State-wise restrictions, especially across the southern States, the roots of the economic recovery deepened in July 2021. Despite a normalising base, eight of the 15 high-frequency indicators recorded an encouraging improvement in their year-on-year (YoY) growth in July 2021,” the agency's chief economist Aditi Nayar said in the report. Moreover, 10 of the 13 non-financial indicators recorded a month-on-month (MoM) uptick in July 2021, although the pace of improvement eased, as expected, from levels seen in June, when State-wise unlocking had commenced, she said. The YoY performance of GST e-way bills, fuel consumption, electricity generation, output of Coal India Limited (CIL), vehicle registrations and domestic passenger traffic improved in July 2021 from June 2021.