Nearly 60% of this FDI came into India’s computer software and hardware sectors. “The sector has benefitted during the pandemic times on account of work from home policies and greater engagement in digital channels,” the report observed.

What’s surprising is that foreign investors have continued to pour money into India despite concerns over the economy’s ability to stage a quick recovery. Economists have warned that it will take years to offset the impact of damage caused by the pandemic-triggered lockdowns.

High-frequency indicators such as imports and auto sales also reveal that the demand has remained weak despite the partial opening up of the economy. And with the lockdowns being put in place again to halt the spread of Covid-19, the consumption could further weaken.

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