However, the third wave of Covid-19 remained a key risk to economic recovery with a slowing vaccination pace and increased mobility in July, the firm said in a note on Monday.
The Nomura India Business Resumption Index (NIBRI), which tracked high frequency indicators such as mobility indices and power consumption, accelerated to 96.4 for the week ended July 18, from 94.9 the previous week.
“The first flush of conventional monthly data for June suggest a gradual V-shaped recovery from the nadir in May,” said Nomura economists Sonal Varma and Aurodeep Nandi, in the note.
Mobility indicators such as Google’s workplace and retail and recreation mobility indices continued to rise 2.4 percentage points (pp) and 5.1pp week-on-week, respectively.
Meanwhile, India’s Vaccination pace slowed marginally to 3.6 million doses per day in July from 3.8 million in June, it said.
“With mobility continuing to pick up through July and broader vaccination coverage still a quarter away, the key risk to India’s growth recovery is the threat of a third wave during this period,” Nomura said.