The June recovery and beyond

There will be a limit to the immediate recovery that we witnessed in June

Plenty of fast-frequency data from official sources confirm the partial recovery of the economy in June that we had seen coming in the weekly estimates of India’s labour markets. It was not just the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) spending by the government or the southwest monsoon and kharif sowing data which we had used to explain the recovery of June in rural India that confirms the dramatic recovery. It is also evident by now in the data on consumption of energy sources and in the movement of industrial goods on railways and across major ports.

Electricity