A Long Road to Recovery.
The COVID-19 outbreak and the subsequent lockdown have caused demand, supply, and financial shocks to India’s economy, all at once. The negative effects were partially mitigated by some prompt policy actions by the central bank and the government, and signs of recovery are already visible. The CEIC Leading Indicator rose to 52.7 points in May and to 80.1 points in June. However, for some industries, the pandemic has posed much larger challenges. There has been a direct implication on income and employment, as many small businesses have been forced to shut down permanently.