Retail industry
Surprise
Formal and modern retail is recovering faster than informal retail
Formal retail industry is recovering faster than experts had predicted. People from the middle income and high income group are behind the ‘K’ shaped recovery. The government and the corporate sector are not contributing to the recovery.
As per the economist Mahesh Vyas: Forced savings by the rich during the initial lockdown period and a much reduced fear of infections explain the contribution of households to the revival of the Indian economy.
Mahesh explains in his weekly column that the government hasn’t given stimulus to the economy by spending on projects. At the same time private businesses have cut costs and increased their profits. Rich people withthe savings, are spending. Fear of infections and revival of the economic activity are also helpful. People earning INR 2 lakhs per annum and INR 5 lakhs per annum have recovered the most, followed by people earning INR 10 lakhs per annum.
