An impending vaccination, resumption in economic activity and increased mobility are expected to lead towards a path of economic recovery in the aftermath of the Covid-19 pandemic, but the fragility of industrial recovery and pent-up demand have thrown up questions over the sustainability of the signs of economic recovery. “The government should not get fixated with fiscal deficit and should look at how to revive the economy from the Budget point of view. Concerns over the new strain of the virus and associated restrictions are overshadowing the optimism of a faster vaccine fuelled economic recovery. Activity levels are unlikely to attain pre-lockdown levels until mid- 2021 for most segments, CARE Ratings said in its report. Persistent sticky inflation, high borrowing levels, and a rebound in growth are likely to exert upward pressure on yields as well.

Source: Indian Express December 31, 2020 22:52 UTC