Post-Covid recovery will be uneven

If the pandemic were to prolong, or if the monsoon is below normal, rural incomes will be impacted, and demand recovery will be slow.

The second wave of Covid-19 has hit hard and deep, causing immense pain. However, its impact on the credit profiles of, and the outlook for, domestic companies has been relatively milder compared with the situation a year back. There are four crucial differences this time around.
 
One, disruption in business activity is relatively less because lockdowns have been asynchronous in states and even districts, and less stringent. Two, the availability of clear treatment protocols has brought down the mortality rate, despite a sharper rise and a taller affliction peak. That there are effective vaccines — leaving aside the availability