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Karnataka, Kerala Among Top 5 States Leading India's Economic Recovery Amid Lockdown
Writer: Navya Singh
Navya writes and speaks about matters that often do not come out or doesn’t see daylight. Defense and economy of the country is of special interest to her and a lot of her content revolves around that.
India, 2 Jun 2020 9:59 AM GMT | Updated 2 Jun 2020 12:39 PM GMT
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Maharashtra and Gujarat, some of the most industrailised states have not been able to recover due to stringent measures still in place to contain the spread of COVID-19.
As the country battles a deadly pandemic and its economic impact that has brought the country to a standstill, five states which contribute nearly 27% of the country's GDP are leading in the recovery of the economy, a study by Elara Securities Inc. shows.
Kerala, Punjab, Tamil Nadu, Haryana and Karnataka have experienced a quick recovery and restart in economic activities, based on power consumption, movement of traffic, availability of farm products at wholesale markets and Google mobility data.
Maharashtra and Gujarat, some of the most industrailised states have not been able to recover due to stringent measures still in place to contain the spread of COVID-19, Garima Kapoor, an economist at Elara Securities in Mumbai said.
India will start a lifting of the nationwide lockdown in phases from June 8, permitting shopping malls, restaurants and places of worship to reopen in areas where COVID-19 has been under control.
"The best stimulus India can have is resumption of normal economic activity," Kapoor said. "The country is witnessing an improvement in activity but it remains sporadic."
Punjab and Haryana were among some states that witnessed an improvement in electricity requirement, the study showed. Delhi also showed a rise in power demand.
Google search trends were examined to analyze if consumers are changing consumption patterns as they adopt a "new way of life".
The analysis showed that there was held-back demand for salon services, air conditioners, air travel, bikes, vacuum cleaners and washing machines. Searches linked to panic-buying when the lockdown was first imposed such as pharmacy and grocery stores and liquid soaps have reduced.
"We anticipate demand to persist in the upcoming months, as some are virus-related shifts in patterns," Kapoor stated.
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