- 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.
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