Synopsis
New curbs on movement of people or restrictions on businesses are a risk to the nascent recovery, given that gains in the October-December quarter probably came from the reopening of the economy, which is primarily driven by domestic consumption. The government also boosted spending in the final months of last year to spur growth.
Agencies
Rising Covid cases in some parts could derail normalisation in the near term, some economists say.
As India’s economic fortunes stand at the cusp of a turnaround, a spike in coronavirus cases across its key business centers risks undoing some of the gains.