• Covid 2nd wave hit India in late March and April. Impact of the same was seen on the Economy as well due to measures to curb Covid infections and state level restrictions.
  • Ministry of Statistics and Programme Implementation (MOSPI) released the IIP (Index of Industrial Production) data of April, which can help in understanding some impact of Covid-19 wave.
  • Manufacturing IIP fell from 143.2 in March to 125.1 in April 21, a drop of around 12.6%. However as far as historical numbers are concerned, the index of April 21 (125.1) was not far from that of April 19 (126.2) or April 18 (123.1) showing resilience of Indian economy to the 2nd Covid wave.
  • Mining index contracted from 138.7 to 108.0 in April, a drop of 22.1% whereas the Electricity index remained stable from 180 to 174, a drop of 3.3%.
  • With regard to index of end use of goods in April, primary goods index fell by 12.6% while intermediate goods and consumer non-durable goods fell by 11% each. 
  • Goods and services tax (GST) collections saw a drop May compared to April, but still remained above 1 lakh Crore mark.
  • Monetary Policy Committee (MPC) decided to keep the policy repo rate unchanged at 4.0 per cent and continue with the accommodative stance.
  • With receding of Covid-19 cases, relaxations in the lockdowns and pent up demand in the economy, the businesses activity is likely to pick pace in coming months.


RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)


This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.

This material captures the information based on information available in the public domain, public announcements and sources believed to be reliable. Analysis contained herein is based on publicly available information and appropriate assumptions. This material is intended merely to highlight market developments and is not intended to be comprehensive and does not constitute strategic, investment, legal or tax advice. In no event Vora Management Consultancy Private Limited be liable for any use by any party or for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you for evaluating any transaction. 

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