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Resource centre on India's rural distress
 
 

‘Pandemic ate up ₹13-lakh crore household income’

-PTI/ The Hindu

Consumption drag likely,says UBS unit

Households have lost a whopping 13 lakh crore of their incomes from the pandemic-induced job losses, according to a report that also warns of the economy losing momentum by mid-2021 on a likely slowdown in consumption demand that has propped the economy in recent months.

‘Could slow by mid-2021’

Describing the growth momentum seen in the second and third quarters of FY21 as a positive surprise, economists at UBS Securities India led by Tanvee Gupta Jain said the economy could slow by mid-2021 as households that lost incomes during the pandemic to the tune of 13 lakh crore could drag consumption with a lag.

In the second quarter of the current financial year, the GDP contraction narrowed to 7.5%, while in Q3, it grew 40 basis points (bps).
 
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