The normalization process in the economy continued its pace for the latest reporting week as well on the back of higher mobility in the holiday season, a Japanese brokerage said on Monday.
Nomura India Business Resumption Index (NIBRI) picked up to 94.5 for the week ending January 3 from an average of 91.7 December, as per a statement. The rise in the index was "led by an improvement in mobility indices, in sync with the holiday season", the statement said.
It can be noted that economic activity had reached a trough due to the lockdown to contain the spread of COVID-19 infections in mid2020 and led analysts to downwardly revise their estimates of economic performance. However, the recovery has been faster than many expected after the unlock process and the RBI now expects the economy to contract by 7.5 percent in FY21.
The power demand, which rose 2.7 percent and 3.1 percent over the preceding two weeks, corrected 2.7 percent week-on-week in the latest reporting week. The labour participation rate eased to 40.3 percent in early January from 40.9 per cent in December, it said.
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