RBI: Several high-frequency indicators pointing to emergence of impulses of growth

A number of consumption-related indicators show economic activity has surpassed the February or pre-Covid-19 levels, while in some other areas connected with sectors such as tourism, airlines, hospitality, the downturn continues.

RBI data for August and September shows domestic sales of tractors, two wheelers and consumption of steel, electricity, payment of life and non life insurance premium have crossed the base levels recorded in February 2020. Domestic air passenger traffic, domestic air cargo, port cargo and exports and imports continue to remain below the February base levels. The data indicates uneven pace of recovery across sectors and segments.

In his monetary policy statement on Friday, RBI Governor Shaktikanta Das said, “Relative to pre-COVID levels, several high-frequency indicators are pointing to the easing of contractions in various sectors of the economy and the emergence of impulses of growth.”