The weekly Nomura India Business Resumption Index (NIBRI), which compares activity in a particular week with the last week prior to the announcement of the lockdowns in March 2020, came at 114 for the seven days ended Sunday, up from 110.3 in the prior week.
The labour participation rate remained tepid at 39.8 per cent, while power demand rose 0.2 per cent over the last week, after the 5.5 per cent rise in prior week.
The overall growth outlook is “obscured” by demand tailwinds and supply-side headwinds, the brokerage said.
It maintained the 9.2 per cent GDP growth estimate for FY22 but added that there is a downside risk of one per cent because of supply-side issues.
Noting that the energy crunch is easing, it said the supply-side issues emanate from the auto sector.
“October auto sales have been lacklustre, reflecting not only semiconductor shortages but also the impact of weak rural demand on two-wheeler sales,” it said.