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These 5 Indian states are leading the economy to recovery after lockdown, study shows

The states have seen pickup in activity such as power consumption, traffic movement, arrival of farm products at wholesale markets & Google mobility data.

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Mumbai: Five Indian states contributing nearly 27% of the country’s gross domestic product are leading a recovery in the economy as it slowly emerges from the world’s biggest lockdown, a study by Elara Securities Inc. shows.

Kerala, Punjab, Tamil Nadu, Haryana and Karnataka have seen a pickup in activity, based on an analysis of indicators such as power consumption, traffic movement, arrival of farm products at wholesale markets and Google mobility data, Garima Kapoor, an economist at Elara Securities in Mumbai, wrote in a note.

Some of the most industrialized states such as Maharashtra and Gujarat were trailing because of tough measures still in place to contain the Covid-19 pandemic, she said.

India will begin a phased lifting of the nationwide lockdown from June 8, allowing shopping malls, restaurants and places of worship to reopen in areas where virus infections are 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 states that saw an improvement in electricity requirement, reflecting demand from farm operations, the study showed. National capital Delhi also showed an increase in power demand as well as mobility trends.

Kapoor examined Google search trends to see if consumers are shifting consumption patterns as they adapt to a “new way of life.”

The analysis showed there was pent-up demand for salon services, air conditioners, air travel, bikes, vacuum cleaners and washing machines. Searches associated with panic-buying when the lockdown was first announced — such as pharmacy and grocery stores and liquid soaps — have eased. Consumers haven’t given up looking for items such as earphones, hair oil, laptops, mobile phones, jewelery, mops, toys and microwave ovens.

“We anticipate demand to persist in the upcoming months, as some are virus-related shifts in patterns,” Kapoor said. –Bloomberg 

Also read: How many jobs have we lost during lockdown? PMO seeks answers from ministries


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  1. I would like to see when not any 5 or 10 states are leading the economy to recovery….. why cant all 28 states come up with something to offer each other in terms of products, services?

  2. Kerala leading economic recovery?? You must be joking, nay, bluffing through through teeth!
    Even during non-covid days, nothing will be produced in Kerala, all industries – small, medium and large – were closed due to employee hyper unionism; people are lazy – they need Bengalis for doing every little job, fruits, vegetables, grocery and rice have to come from other states… the list goes on.
    What will they produce to support an economic recovery?

  3. Good thing.. there would be cas flow. But in India 90% of the traders don’t give receipt. So Government would not get expected tax receipt.. money will just accumulate in the hands of greedy traders and corporate. Give should take strict measures to ensure everyone pay proper tax.
    1. By making electronic receipt mandatory
    2. If possible create a billing application and ensure every trader use it and all sales data should be maintained by Govt and compared with GST
    3. Any amount greater than 1000 in cash transactions should be made void. All transactions should be through bank

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