Nomura’s index of economic activity Nomura India Business Resumption Index (NIBRI) improved to 98.1 points in the week ended February 14 from 95.9 points in the previous week. India’s GDP is projected to contract at 7.7% due to the impact.
The latest data from Nomura suggest that India’s economic activity is just 2% below its pre-Kovid level. Nomura’s assessment is in line with India’s recent IIP data, which showed a slight increase of 1 per cent year-on-year in December 2020.
Japan’s financial services company Nomura says economic activity in India is on the verge of normalization and the economic growth will be 13.5% in FY 2021-22. Significantly, the Indian economy is badly hit due to the Kovid-19 epidemic and the lockdown imposed to deal with it.
Nomura estimates that the Indian economy will grow at 13.5% in FY 2021-22. The Weekly Report of Nomura states that there are signs of improvement in mobility conditions during the week ended 14 February. Electricity demand is down 0.1%, but it may have a 9.6 percent surge in the previous week. The labor participation rate has come down to 40.5% from 40.9% a week ago.
Explain that Nomura’s NIBRI index includes high-frequency indicators such as mobility, labor participation and energy consumption to check for post covid recovery. The manufacturing, consumer goods, infrastructure and construction goods sectors have contributed significantly to this recovery of India’s economic activities.