Indian economy charges past prepandemic level

Global chip and energy shortages threaten lasting comeback

20211018N India

A crowded market in Mumbai: India hit a new global record of over 410,000 daily infections earlier this year, but the figure has since fallen to under 20,000. © Reuters

MOYURU BABA, Nikkei staff writer

NEW DELHI -- India's economy is now doing better than before the start of the COVID-19 pandemic, an index compiled by Nomura Singapore shows, as the South Asian country overcomes a mass outbreak that brought its health care system to its knees earlier this year.

But chip and energy shortages have begun to impact India's manufacturing sector, casting shadows over the path to a full and lasting recovery. Farmer protests, once again picking up momentum after a coronavirus-induced lull, could also lead to widespread supply chain disruptions.

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