Growth pace in high volume indicators slows in January, says ICRA

Nine of the 15 high-frequency indicators slowed in January 2021 compared with December 2020. Five indicators — passenger vehicle output, vehicle registration, Coal India output, diesel consumption, and domestic airlines passengers — recorded contraction in January, according to ICRA.

“We do not construe the dip as a sign of alarm regarding the sustai­nability of growth recovery. But, we do caution that the pace of underlying growth in the economy remains subdued, and do not see a sharp ramp-up in the pace of GDP in Q4FY21,” ICRA Principal Economist Aditi Nayar said.