scorecardresearch
Friday, March 29, 2024
Support Our Journalism
HomeEconomyRisky for Indian states to ease lockdowns despite low vaccination, Oxford Economics...

Risky for Indian states to ease lockdowns despite low vaccination, Oxford Economics says

States are easing lockdowns based on lower test positivity rates rather than vaccination progress, increasing chances of renewed outbreaks that could delay recovery, Oxford Economics warns.

Follow Us :
Text Size:

The rush by India’s states to end lockdowns as new coronavirus infections drop, rather than waiting for vaccination rates to rise, risks triggering fresh restrictions and holding back the nation’s recovery, according to Oxford Economics.

“States are easing lockdowns based on lower test positivity rates rather than vaccination progress,” Priyanka Kishore, head of India and South East Asia Economics at Oxford Economics, wrote in a report to clients. “This risky strategy increases the chances of renewed outbreaks that would further delay the recovery.”

Provinces including national capital New Delhi have begun reopening amid signs of infections plateauing, causing mobility rates to improve as of mid-June. While that’s likely to foster return of some demand in the near-term, there’s the risk of consumption and business activity suffering going ahead should newer restrictions be placed to control a resurgent virus wave.

With only 3.9% of India’s population fully vaccinated, Kishore sees economically important states, including Maharashtra and Tamil Nadu not yet reaching the “safe” levels of vaccination.

“The vaccine situation keeps our outlook cautious,” said Kishore, who maintained India’s growth forecast for this year at 9.1% — a pace slower than the 9.5% predicted by the nation’s central bank. “Economic data also doesn’t support an upward revision to our growth expectations at this point,” she said. –Bloomberg


Also read: Indian stocks will continue to soar. Only 2 Ps can cause a dent, Rakesh Jhunjhunwala says


 

Subscribe to our channels on YouTube, Telegram & WhatsApp

Support Our Journalism

India needs fair, non-hyphenated and questioning journalism, packed with on-ground reporting. ThePrint – with exceptional reporters, columnists and editors – is doing just that.

Sustaining this needs support from wonderful readers like you.

Whether you live in India or overseas, you can take a paid subscription by clicking here.

Support Our Journalism

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular