Recovery faces demand constraints

While the supply-side has sprung back at least in the large organised sectors, the demand side continues to remain broken. The demand constraints will pose a challenge to the recovery process

Consumer sentiments have turned sour. Both, lives and livelihoods face serious threats ironically, months after vaccines became available. Risks shot up even as uncertainty. Failure of the public health system and a woefully inept state are the immediate causes of increased risks. These have led to avoidable loss of lives, loss of dignity in death and also loss of household incomes. These dour conditions have in turn caused a fall in consumer sentiments which, will hold back the economic recovery process.

The index of consumer sentiment declined by 1.5 per cent in the week ended May 16, 2021. This was