After months of erratic economic performance, India’s economic momentum had picked up pace last February, only to be stopped on its tracks by a global pandemic. Mint’s macro tracker shows a steady improvement in economic indicators over the past few months but a renewed surge in infections once again poses a threat to economic activity and investor sentiments. Since then, the economic momentum has seen a gradual improvement before moving on to the fast lane over the past couple of months. The growing threat of inflation amid rising economic activity and growing public debt had led to murmurs about the need to tighten monetary policy in India. If mobility restrictions rise further, the economic momentum will be dented severely.

Source: Mint March 31, 2021 06:01 UTC