New Delhi (NVI) : Due to the Covid second wave, India’s economic recovery is likely to be delayed but the shock to the economic activity will be less severe this time as compared to the one witnessed last year, according to global rating agency Fitch Ratings.
“We expect the shock to economic activity from the latest wave of the pandemic in India to be less severe than in 2020, even though caseloads and fatalities are much higher,” it said in a report today.
At the same time, it said, “Nonetheless, indicators show activity dropped in April-May, which is likely to delay the country’s recovery, and the number of newly recorded cases remains extremely high.”
Drawing a comparison between the situation existing now and that witnessed last year, Fitch said currently authorities are implementing lockdowns more narrowly, and companies and individuals have adjusted behaviour in ways that cushion the effects.
“There is a risk that disruption could persist longer and spread further than our baseline case assumes, particularly if lockdowns are introduced in more regions, or nationwide,” it added.
“India’s slow pace of vaccination means that the country could remain vulnerable to further waves of the pandemic even once the current surge subsides. Just 9.4 per cent of the population had received at least one vaccine dose as of 5 May, according to figures from Our World in Data,” it added.