S NIBRI crosses 100, eading the signals

he Nomura India Business Resumption Index (NIBRI) has crossed 100 (pre-pandemic base) for the first time since the beginning of the demic. NIBRI, which has emerged as one of the st popular high-frequency indicators of economic vity in the post-pandemic period, is based on gle mobility indices, driving mobility from ple, power demand, and the labour force ticipation rate. There are three key takeaways of RI crossing 100 in the week of August 15. ne, vaccinations are crucial to restore economic vity. The V-shaped recovery in NIBRI after the ond wave would not have been possible without cines. As of August 15, India has given at least one to 427 million people out of the estimated 940 lion adults. The pace should have been better, but scale isn’t insignificant. As people get vaccinated, nomic activity will resume. wo, partial lockdowns are preferable to blanket downs from an economic point of view. The ond wave was far more severe than the first. The that the Centre did not impose a hard lockdown the 68-day phase beginning March 25, 2020, ured that the economy did not suffer like last r. This is an important lesson to remember in e of a third wave. And finally, NIBRI crossing 100 uld not make us complacent. NIBRI is not meant apture challenges such as weakness of aggregate and. This newspaper has consistently argued t lack of demand is the binding constraint on the nomy regaining its momentum. Fiscal policy st do all it can to address this challenge to prevent