Global Economy

Industrial output regains ground lost in 2nd Covid wave

A rebound in industrial production and demand owing to easing mobility restrictions fuelled India‘s current recovery with production appearing to have regained lost ground during the second Covid-19 wave, Moody’s Analytics said in a report on reopening in the Asia Pacific region.

However, it has flagged concerns around volatility in inflation caused by rising food and fuel prices.

“Industrial production has broadly recovered since July and production through September appears to have regained all that it lost during this second wave of Covid-19,” said Steve Cochrane, chief APAC economist at Moody’s Analytics, attributing the twin factors to India’s recovery.

He said easing of mobility restrictions will raise demand for local goods and services, which will help in easing supply chains, ramping up of electronics and auto parts plants and flow of consumer goods supplies.

Further, running manufacturing facilities with full staff would allow foreign trade to continue to provide a foundation for the region.


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