(Image source from: moneycontrol.com)
Since the coronavirus pandemic, India’s economy has been deprived. The recent economic study by Elara Securities shows that the five states are keeping the Indian economy on the safe side. The five states are contributing 27% for the entire country’s gross domestic product.
The states which became the economic pillars are Kerala, Punjab, Tamil Nadu, Haryana and Karnataka. Garima Kapoor from Elara Securities published a note that the contributing sectors power consumption, traffic movement, and the arrival of farm products at wholesale.
Maharashtra and Gujarat are the industrialists who are not picking up with the economy. Many such well doing states have gone down as they are worse affected due pandemic and the lockdown, according to Garima Kapoor.
After June 8, India will be unlocked completely in the safe regions. The Government will allow open shopping malls, restaurants, religious places.
“The best stimulus India can have is resumption of normal economic activity. The country is witnessing an improvement in activity but it remains sporadic”, Kapoor said.
Punjab and Haryana are in good economic condition as there is improvement in electricity requirement, reflecting demand from farm operations.
There is a good demand for salon services, air conditioners, air travel, bikes, vacuum cleaners and washing machines. Along with these details the study also observed that there was a quick buying soon after the nationwide lockdown was announced. Consumers are showing interest in spending on earphones, laptops, mobile phones, jewelry and microwaves. The basic needs like hair oils, toys and household things are always expected to have the demand at any time.
“We anticipate demand to persist in the upcoming months, as some are virus-related shifts in patterns” Kapoor said.
By Ramya C