‘Lockdowns have hit activity badly in April’

SBI sees ₹1.86 lakh cr. loss to economy

KARNATAKA , MANGALURU : 28/04/2021 : A shopkeeper closing his shop at Central market after the relaxation hours during the 14 days lockdown, in Mangaluru on April 28, 22021. PHOTO: MANJUNATH HS \ THE HINDU   

The spate of local lockdowns and restrictions have dented economic activity severely in April, SBI said in a report on Thursday. The bank’s research team now pegs the loss to the economy at ₹1.86 lakh crore, higher than the ₹1.5 lakh crore it had estimated last week.

“The SBI business activity index, which has been declining in April ’21 has now dipped to a new low of 75.7, the level it had attained in August 2020 and is now a clear 24.3% down from the pre-pandemic level,” the researchers said in the report.

“All the indicators, except for labour participation and electricity consumption, have declined significantly during April,” said SBI group chief economic adviser Soumya Kanti Ghosh, who authored the report.

Maharashtra, M.P., Karnataka and Rajasthan accounted for 75% of the loss. Maharashtra’s loss stood at 43%, said Mr. Ghosh.