Economic activity contracted by 12% during June 2021 qtr: UBS Securities India

The UBS-India activity indicator suggests that economic activity during the June 2021 quarter contracted by an average of 12 per cent as compared to 23.9 per cent contraction recorded in the June 2020 quarter as a result of localised lockdowns. Unlike the V-shaped recovery in 2020, UBS Securities India’ s economist Tanvee Gupta Jain expects the economy to have only a gradual recovery this time, as consumer sentiment remains weak on pandemic-related uncertainties. Though the brokerage expects a sequential pick-up in economic activity from June, it believes that the economy may gain traction only from the second half of current fiscal.