‘Covid wave: Expect muted hit on economy as against first’

The second Covid wave poses a draw back danger to financial exercise within the first quarter of 2021-22 fiscal yr, though its influence could also be muted compared with that of the primary wave, based on the Finance Ministry.
As the elevated vaccination is efficient each in controlling the Covid unfold and boosting mobility, the “need of the hour is, therefore, to expand vaccination at a fast pace”, the Ministry famous in its Monthly Economic Review for April launched Friday.
“The second wave in India is witnessing a much higher caseload with new peaks of daily cases, daily deaths and positivity rates and presents a challenge to ongoing economic recovery … However, there are reasons to expect a muted economic impact as compared to the first wave. The experience from other countries suggests a lower correlation between falling mobility and growth as economic activity has learnt to operate ‘with Covid,” it stated, whereas noting that the momentum in financial restoration for the reason that first wave has moderated throughout April.
Learning to function with Covid, as borne by worldwide expertise, supplies a silver lining of financial resilience amidst the second wave, with India emphasising on a five-fold technique to curb the tide of recent Covid instances –Test, Track, Treat, Covid Appropriate Behaviour and Vaccination, as per the overview launched by the Department of Economic Affairs.
Growing infections and consequent restrictions, although native/ regional in nature, have imparted a draw back danger to financial exercise. “The impact of restrictions is evident in a decline in the google mobility indicator to -37 percent in April 2021 from around -22 percent in the preceding month. The Oxford Stringency Index in India has surged to around 71 in April 2021 from 59 in the preceding month, though it is still below 100 in April 2020 and average of 85 in Q1: FY 2020-21,” the overview famous.
It stated the Central authorities in addition to the states are focussing on stepping up capital expenditure to help financial exercise, whereas a collection of measures are being taken to deal with Covid-19.