Home >News >India >FinMin says economic revival critically linked to covid infection curve
The manufacturing PMI fell to 46 in July, signalling that local lockdowns are impacting biz. (HT)
The manufacturing PMI fell to 46 in July, signalling that local lockdowns are impacting biz. (HT)

FinMin says economic revival critically linked to covid infection curve

Top 12 growth driving states make up 85% of the caseload, with 40% of confirmed cases located in Maharashtra, TN

NEW DELHI : India’s economic recovery will depend on how the covid-19 pandemic unfolds across states in the coming days, especially in industrialized states, with the coronavirus rapidly spreading across the country, the Union finance ministry said on Tuesday.

“The economic recovery is crucially linked to how the covid-19 infection curve evolves across states. The emergence of new hotspots has led states and Union territories to enforce intermittent lockdowns. India’s top 12 growth driving states account for 85% of the caseload, with 40% of confirmed cases concentrated in the top two growth drivers, Maharashtra and Tamil Nadu," the finance ministry said in its Monthly Economic Report for July.

India’s purchasing managers’ index (PMI) for manufacturing declined in July to 46 from 47.2 in June, signalling that local lockdowns imposed across the country by state governments amid the demand slump is impacting business activities at the national level. As India unlocked starting 1 June, active cases reached 5,60,000 by July-end, growing at 166% compared to June. The highest growth in active cases in July was seen in Karnataka, Andhra Pradesh, and Jharkhand, which experienced a second major wave of infections. Simultaneously, growth in recoveries was faster and broad-based across states, growing at 215% to reach almost 2 million cases by end-July, thereby exceeding active cases by 5,30,000, the report said. The finance ministry said the highest cumulative deaths by July-end were concentrated in Maharashtra, Tamil Nadu, Delhi, and Gujarat while the greatest rise in deaths was witnessed in Karnataka, Andhra Pradesh, and Assam compared to June.

The pandemic resulted in the greatest fall in goods and services tax collections in June being witnessed in Haryana and Uttarakhand, followed by Tamil Nadu. Electricity consumption recovered in June compared to May with strongest recoveries in Karnataka, Andhra Pradesh, Punjab, and Chhattisgarh.

“Value of e-way bills, suggestive of intra and inter-state movements of goods, also picked up strongly in June over May, across all states," the report said.

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