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Covid-19 second wave induced sequential slackening a concern: ICRA


Sequential growth slackening driven by the second wave of Covid-19 in India has emerged as a concern, ratings agency ICRA said.
ICRA also cautioned that bruised sentiment, high healthcare and fuel expenses will limit discretionary purchases in the immediate term.
Furthermore, the agency expects a cut-back in spending on contact-intensive services.
As expected, the shrunken base of the nationwide lockdown in April 2020 has boosted the pace of year-on-year (YoY) expansion of several high-frequency indicators in April 2021, resulting in a widespread improvement compared to the performance in March 2021, ICRA Chief Economist Aditi Nayar said.
However, the optimism generated by this trend is limited, as eight of the 13 non-financial indicators in April 2021 remained below their pre-Covid levels. ....

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