State Bank of India’s business activity index has shown significant improvement in activity since May-end 2021, with the latest reading for the week ended August 9, 2021 of 101.6.
The index reading for May 22, 2021 was 61.4 and for July 21, 2021, was 94.2.
“Recovery is visible in labour participation rate, electricity demand, Google mobility and Apple mobility index. However, there is slight dip in RTO revenue collection and vegetables arrival from last week,” said Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India (SBI).
Agri production
In a report titled “Covid-19: Vaccinate, Vaccinate & Vaccinate!”, Ghosh observed that the month-on-month (m-o-m) rural recovery in July (as per key leading indicators) is expected to be steady, if not exceptional, as compared to June.
Rural indicators continue to be steady though patchy at times, as per the report.
“The rural recovery is far better than the pre-second wave. Looking ahead, agricultural production and rural demand are expected to remain resilient,” he said.
Covid vaccination
The report assessed that going by the present vaccination rate of 45 lakh per day, the critical mass (70 per cent) may be covered with first dose of the Covid-19 vaccination by November-end 2021 and second dose by March 15, 2022.
“India’s cumulative Covid-19 vaccination coverage has crossed the 52 crore mark and till now more than 54.04 crore vaccine doses provided to States/Union Territories,” it added.
In the last one month, speed of vaccination accelerated with the 7-day moving average currently at about 45 lakhs, and 43 per cent of eligible population vaccinated with first dose and 12 per cent with second dose.