Households have not recovered

Economic growth is supposed to deliver on these counts and not just on tax collections or freight movement or foreign trade

Of all the fast-frequency economic indicators, recovery in consumer sentiments from the pandemic-induced economic shock has been the worst. It has been excruciatingly slow and uninspiring.

The index of consumer sentiments in November 2021 was 16.1 per cent higher than it was during the pandemic-affected November 2020. What is important is that it was a substantial 43 per cent lower than it was during the pre-pandemic month of November 2019, or in fiscal 2019-20. No oth­­er indicator has been as sluggish in rec­overy. But, perhaps, no other economic ind­ic­a­­tor is as important as the consumer s­e­n­timents index. This is so