The Reserve Bank of India (RBI) kept interest rates steady at record lows and reiterated its commitment to keeping policy accommodative as a second wave of COVID-19 infections threatens to derail the country's economic recovery.
Reuters
2 minute read
A labourer welds an iron pillar at a building material factory in an industrial area in Dasna, in the central Indian state of Uttar Pradesh, India, January 9, 2019. REUTERS/Adnan Abidi
Indiaâs factory activity growth slowed significantly in May as an escalation in coronavirus cases whacked new orders and output while scarcity of raw materials drove up input costs, a private sector survey showed on Tuesday.
Although daily infection rates have started falling in the past few days there are concerns about underreporting of cases due to a dearth of testing in rural areas.
India has already reported around 28 million coronavirus cases and over 300,000 deaths, leading many states to impose restrictions affecting economic activity.
Vivek Mishra
4 minute read
A view shows empty roads during a 14-hour long curfew to limit the spreading of coronavirus disease (COVID-19) in the country, in Ahmedabad, India, March 22, 2020. REUTERS/Amit Dave
Indiaâs economic outlook has weakened again, albeit slightly, with worst-case scenario forecasts suggesting the toll from the coronavirus pandemic could be much deeper, stoking fears the job crisis may worsen over the coming year, a Reuters poll found.
Renewed restrictions to curb the current coronavirus wave have stalled economic activity, leaving many millions out of work and pushing economists - who have broadly been bullish - to downgrade their views for the second time since early April. read more
India's economy has not moderated as much as it did during the first wave of the coronavirus, but uncertainties may act as a short-term deterrent and private demand will be key to revival, the Reserve Bank of India said on Thursday.