Economics

India’s Economy Shows Signs of Recovery as Virus Cases Decline

  • RBI expects ‘V’-shaped recovery in 2021 as vaccines roll out
  • Passenger vehicle sales grew as did services and manufacturing
Photographer: Prashanth Vishwanathan/Bloomberg
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India’s economy showed signs a recovery is taking root as waning virus cases and a vaccine roll-out supported sentiment and as focus turns to further stimulus possible in the upcoming federal budget.

The needle on a dial measuring overall economic activity was unchanged at 5 last month, indicating the economy was coasting along in the fast lane. Although seven of the eight high-frequency indicators tracked by Bloomberg News held steady and one deteriorated, the gauge uses the three-month weighted average to smooth out volatility in the single-month readings.