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ICRA Ratings in its latest report has said that the roots of the economic recovery deepened in July 2021, with the further easing of the state-wise restrictions, especially across the southern states. It said the unlocking in the country has manifested itself in improving performance across various high-frequency industrial and service sector indicators, mobility, and toll collections in July 2021.

According to the report, despite a normalizing base, eight of the 15 high-frequency indicators recorded an encouraging improvement in their year-on-year (YoY) growth in July 2021. Moreover, it said 10 of the 13 non-financial indicators recorded a month-on-month (MoM) uptick in July 2021, although the pace of the improvement expectedly eased from the levels seen in June 2021, when the state-wise unlocking had commenced.

The report further said the YoY performance of GST e-way bills, fuel consumption, electricity generation, the output of Coal India Limited (CIL), vehicle registrations, domestic passenger traffic, etc. improved in July 2021 compared to June 2021. Moreover, it said the worsening in the YoY performance of some of the remaining indicators such as the output of passenger vehicles (PVs), scooters, and motorcycles, was primarily due to the unfavorable base effect. It, however, said the sequential momentum of growth eased in July 2021, after having recorded a sharp uptick in June 2021.